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Nurseries under pressure from wage and pensions increases

2 mins read Early Years
Almost two in 10 nurseries in England will see their wage bill rise by up to 12 per cent next month as a result of increases in minimum wages and pension contributions, research has shown.

The results of a poll conducted by the National Day Nurseries Association (NDNA) have led the organisation to warn that nurseries will close and parents will be forced to pay more for childcare because government funding rates has failed to keep pace with wage rises.

It says wage bills make up between 70 and 80 per cent of nurseries' operational and business costs. 

NDNA's most recent survey of 450 early years employers and professionals conducted in February and March found 16 per cent expected their wage bill to rise by between nine and 12 per cent from April, when new rates for minimum wages and pension contributions come in to force.

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