As of this month, working parents in England are now entitled to 30 hours of free childcare for three- and four-year-olds, up from the previous 15 hours.
Research by the New Economics Foundation found that for nurseries to break even without passing on costs they would have to pay their staff £7.33 an hour, which is below the national minimum wage for 25-year-olds and over of £7.50 an hour.
The think-tank said the discrepancy comes because, on average, parents are currently charged £6 per hour for childcare for under-2s, £5.30 for 2-year-olds and £5.10 for 3- and 4-year-olds, but the government is offering providers £4.27 per hour for this same care, "leaving nurseries with a significant gap in their finances".
Register Now to Continue Reading
Thank you for visiting Children & Young People Now and making use of our archive of more than 60,000 expert features, topics hubs, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's Included
-
Free access to 4 subscriber-only articles per month
-
Email newsletter providing advice and guidance across the sector
Already have an account? Sign in here
