Rachel Reeves' National Insurance hike could force most nurseries to raise fees for parents, shocking survey reveals
Daily MailMost nurseries will have to raise fees for parents because of Labour’s National Insurance hikes, a new survey shows. As many as 95 per cent of nurseries surveyed said they will have to raise their fees as a result of Labour's National Insurance increase Rachel Reeves' tax hike has increased employers' NI contributions by 1.2 per cent, while lowering the threshold at which they firms will be liable to pay NI on salaries And the minimum wage for over 21s, known officially as the National Living Wage, will rise from £11.44 to £12.21. Neil Leitch, chief executive, said: ‘There is no doubt that without urgent action from Government, the changes announced at Budget could have a catastrophic impact on the early years sector. Sector bosses have called on the Government to increase funding for free hours, or exempt childcare providers from the NI increase And Mr Leitch said the Government ‘doesn’t seem to have factored in’ NI hikes to the funding rates for next year ‘at all’.
History of this topic
Rachel Reeves is warned that women could be 'driven out of work' if nurseries hike their fees as a consequence of the Budget
Daily Mail
Parents face hike in nursery fees as providers struggle to bring in Tories’ free childcare
The Independent
How our nurseries hit crisis point — and why British parents pay more
The TelegraphDiscover Related
