Employers will have to pay the cash upfront and then claim it back under a new mandatory cash contributions system, with wages on top.
With 80 per cent of the nursery sector comprised of two settings or less, this system is likely to affect the majority of early years businesses across the country.
The package of reforms unveiled today also included confirmation that the apprenticeship levy, which is paid by larger groups, will go ahead from April as originally planned.
There had been speculation that it could be delayed or even scrapped after the CBI and other employer’s groups expressed voiced opposition to the scheme.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, 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
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here