Pressures from different directions make it harder for nurseries to turn a profit, says Ruth Thomson
The National Childcare Strategy has produced a paradox: the more money the Government invests, the harder some private nurseries find it to maintain their profit margins. Just how tight the squeeze is going to be on income is beginning to emerge as nurseries around the country start budgeting for the coming financial year.
Central to the problem of trying to sustain profits is staff. The refrain of most nurseries contacted by Nursery World is that rises in staff costs are far outstripping the rate of inflation. One nursery admitted to miscalculating this year, raising fees by 4 per cent but seeing staff costs rise by over 10 per cent.
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