Analysis by the National Day Nursery Association estimates that last month's Budget will cost each private nursery an average of £42,000 in the financial year from April 2019.
The increase in the national living wage, from £7.83 to £8.21 an hour in April, is expected to cost the average nursery an extra £2,550. In total this wage increase will cost the nursery sector £44.2m.
Chancellor Philip Hammond's Budget last month also did not include business rate relief for nurseries, which the NDNA had previously called for. The organisation said that this means the average nursery will incur costs of £10,778 based on 2017 business rates. The national cost to nurseries of this is estimated to be £155m.
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