- Most nursery workers are ‘struggling financially’
- Many are worried about coping with rising bills this winter
Many early years workers are finding it difficult to cover bills and are relying on credit to pay for essentials or replace appliances, reveals Nursery World’s cost-of-living survey.
According to the data, 55 per cent of early years staff are ‘struggling financially’, while 5 per cent are ‘on the breadline’.
At least 9 per cent are classed as living in poverty with a household income of less than £15,000 a year.
Our survey also reveals that having higher qualifications is no guarantee that costs will be easier to meet, with 39 per cent of respondents reporting that they hold a degree or higher.
Who took part?
A total of 115 people took parin our snapshot cost-of-living survey, which ran online from 6-13 October. Its aim was to examine the impact rising costs and high inflation are having on the early years workforce, one of the lowest-paid sectors in this country, on a par with the salaries of hairdressers and cleaners.
Of those respondents, around a quarter were nursery practitioners (28 per cent) and nursery managers (24 per cent), while 19 per cent were childminders. Fifteen per cent were nursery owners and 6 per cent said they work in a school or out-of-school setting.
More than half (55 per cent) reported holding a Level 3 qualification, and 39 per cent a degree or postgraduate qualification. The majority(65 per cent) said they live with their partner, while 18 per cent live alone with children, and 10 per cent live by themselves.
A total of 52 per cent have a mortgage, 24 per cent rent and 23 per cent own their home outright. Most (54 per cent) don’t consider themselves the main earner in their household.
As previous research carried out by Nursery Worldfour years ago found, many respondents rely on their partner’s salary.
One said, ‘Luckily my husband works in a well-paid sector so we’re happy and comfortable as long as we don’t go overboard. My wage barely covers the childcare costs so I can go to work for my own sanity. Everything else is reliant on my partner’s wage. We wouldn’t be able to afford basics if my wage was the main income.’
Another commented, ‘My husband earns good money so I can afford to work on minimum wage in the job I love. If he didn’t earn what he does, I would go back to the finance sector in order to earn a salary we could comfortably live on. In our house, my job is considered a luxury that we can afford. I think of it as my charity work because the pay is insulting.’
When asked about their household income:
- 29 per cent said they have a household income of more than £50,000. These respondents commonly lived with their partner and were not the main earner.
- 23 per cent have a household income of £30,000-£50,000.
- 18 per cent said £25,000-£30,000.
- 20 per cent said £15,000-£25,000.
- 9 per cent have a household income of less than £15,000. These respondents were more likely to live alone or be the main earner.
The Government defines households as ‘low income’ if they live on less than 60 per cent of the median income of around £29,500 per annum, before housing costs. This means a household income of less than £17,700 is regarded as low.
One respondent said they are skipping meals in order to provide for their children. Another said they are having to handwash clothes as they can’t afford to use the launderette and are surviving on £10 a day for food and travel.
One person who took part said they had taken on a second job.
However, 41 per cent said they are ‘financially comfortable’. These respondents were more likely to have a household income of more than £50,000.
Relying on overdrafts and credit
Just over half (51 per cent) said they don’t have any savings, and if something major needed replacing, for example a boiler or another large electrical appliance, 74 per cent wouldn’t be able to afford to do so without using credit.
A total of 30 per cent admitted it is a struggle to make monthly payments on credit agreements, such as credit cards, finance and loans. One respondent said, ‘Sometimes we have more outgoings than money coming in, we rely on overdrafts and credit cards if we can’t afford to pay for additional things. It can be a struggle especially when wages are only slightly above minimum wage.’
Housing costs
For the majority, their mortgage and rent payments have increased in the last six to 12 months. Housing costs were cited as the biggest expense for most respondents, followed by the cost of food.
Just 6 per cent said the cost to travel to work is their biggest expense, and just 2 per cent said it was childcare costs.
For more than half of respondents, the cost of their commute has increased in the last six to 12 months. One respondent highlighted the cost of ULEZ zones, which have recently been expanded. They said they can’t afford to change their car and there are no ‘direct links’ to their workplace.
Making lifestyle changes
The vast majority (80 per cent) said they have had to cut back on socialising, eating out, hobbies, weekends awayor holidays in the past six months. For some this is having an impact on their mental and/or physical health. Some respondents said they were struggling to sleep due to the worry and stress of not having enough money, while others said they were ‘miserable’.
One respondent said they are looking for a new job in a different sector.
A further 59 per cent have cut back on basics such as food shopping, while 7 per cent have had to use a food bank.
One respondent said they are worried about ‘the decrease in their income due to low funding rates’. They added, ‘The funding rate is the same amount as I charged 14 years ago and my bills have increased a lot since then. Food cost is my biggest outlay after my mortgage.’
Money worries
The majority of respondents (84 per cent) said they are worried about meeting the cost of bills as we enter the winter months.
When asked what costs they were the most worried about, many respondents cited gas and electricity bills, as wellas mortgage costs increasing. Christmas was also cited as a financial concern. One said, ‘Bills increasing, insurance increasing, mortgage rate is going up next month. I have just taken on a weekend job to earn extra money.’
CASE STUDIES
Laura is a Level 6 practitioner and relies on financial help from family to survive.
‘Many of my peers from university are on relatively good wages, but I’m the polar opposite with a salary that doesn’t merit a graduate’s expertise and knowledge.
‘I barely make it through a few weeks without asking for financial help from a family member. It’s common knowledge that childcare never pays great, but with the current economic climate it should be raised.
‘It’s no surprise that low wages lead to cheap labour, low skilled, and sometimes inept, individuals who pile through and flood the gates of nurseries. It’s shocking to see, but some of these staff appear to hate the children.
‘I really think the salaries in nurseries should be reviewed and made more appealing, that way it retains and nurtures good staff.
‘My current role is an unhappy one but I’m hoping that will change and one day I’ll be recognised for the passion and skills I bring to the early years.’
Level 3 nursery practitioner from East London
‘As a one-income family of four (two adults, two teens) we are really struggling on my salary alone. I get some tax credits, but they have been reduced this year due to a slight change in my earnings. I rely on a local food bank and a local charity who gives me shopping vouchers so I can top up my food with some fresh produce. I couldn’t afford new school shoes for my kids this year and generally we struggle every month.
‘We are very sensible and budget for everything, but it is still not enough. It’s not a life! I don’t enjoy anything I earn, it all goes on bills, food and transport. I am a room leader in a private nursery. I work 11-hour days, which is very emotionally and physically demanding. I want to move on to a different job but I am in my mid-forties and it feels impossible.’
Childminder, Scotland
‘I have to keep the house warm when childminding but turn heating and lights off in the evenings when it’s just me to try and keep usage down.
‘I have also stopped providing evening meals for children to cut down on my food and fuel bills.
‘My main issue is that our local authority pays funding in two lump sums, once at the beginning and once near the end of each term. All my bills go out monthly. I’m going into my overdraft to pay bills while I’m waiting for funding money to turn up.
‘I had to replace my boiler in May. I have no financial buffer, one of my credit cards is maxed out and I can only afford minimum repayments. If I have any other unexpected costs I don’t know how I will pay them.’