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Increasing minimum wage to £11ph would be the 'final nail in the coffin' for early years

The sector has warned that the Conservative party’s plans to increase the national living wage to £11 an hour will be a ‘recipe for disaster’ without more funding.
The chancellor, Jeremy Hunt, announced plans to increase the national living wage next year, PHOTO: GOV.UK
The chancellor, Jeremy Hunt, announced plans to increase the national living wage next year, PHOTO: GOV.UK

Addressing delegates at the Conservative Party conference in Manchester this afternoon, the chancellor, Jeremy Hunt, announced plans to increase the national living wage from the current £10.42 per hour, to at least £11 per hour next year, benefitting 2 million workers.

While the Early Years Alliance said it ‘absolutely supports the principle of all staff receiving a fair and decent wage’, unless Government ensure funding for the sector rises in line with wage increases, ‘what should be a positive development could end up marking the final nail in the coffin for early years settings.’

The National Day Nurseries Association (NDNA) said that settings will need help to be able to pay staff the new living wage rate, and if they can’t increase their income through funding or fees, they could be forced to close.

 Other speakers at the party conference this afternoon included the work and pensions secretary, Mel Stride, and education secretary Gilian Keegan, who reiterated plans to expand the 30 hours of ‘free’ childcare. She also spoke about the success of phonics checks in ensuring children leave school able to read, and said the party plans to change guidance to ban mobiles in schools.

Referring to the proposal to ban mobile in schools, early years expert Sue Cowley tweeted, ‘Buildings crumbling, recruitment and retention in crisis, but sure focus on something that most schools already do.’

Other proposals include:

  • Reforming the Child Maintenance Service to children get the support they are due sooner. The way payments are calculated when parents aren’t on PAYE and receive other sources of income will also be looked at as well as the sanctions placed on parents who refused to pay child maintenance.