The imminent rise in the national minimum wage from 4.50 to 4.85 an hour is squeezing the profit margins of some smaller nursery chains, prompting them to increase fees.
Although most chains in the south of England pay above the minimum wage, others in the Midlands and further north have already been affected by the rise for workers aged over 22, which comes into force from 1 October. The rate for workers aged 18 to 21 will also increase, from 3.80 to 4.10 an hour.
Glennis Robinson, a partner at the Early Years Childcare Group in Leicestershire, said fees had risen by 10 to 145 a week, instead of its usual 5 increase. 'We have just had to put up the fees more than we normally would to cover it. Every member of staff is affected, because we increase them all pro rata to maintain pay differentials,' she said.
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