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Rise to national minimum wage threatens nurseries' survival

Business Management Funding
A new report suggests that increases to minimum wage and national living wage rates will see childcare businesses failing and larger firms taking over.

The Low Pay Commission’s 2017 report on the National Minimum wage, reveals that childcare employers believe increases to the National Minimum Wage will lead to the closure of some settings, with larger groups ‘filling in the gaps left’.

However, it does acknowledge that increases to the National Minimum Wage and National Living Wage (NLW) are not the only challenges faced by the childcare sector, mentioning the introduction of auto-enrolment pensions and settings being in receipt of Government funding to deliver the 15 and 30 hours.

The LPC is an independent body that advises the Government on setting the National Living Wage and National Minimum Wage rates.

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