Commenting, Neil Leitch, CEO of the Early Years Alliance,
said:
At the Alliance, we wholeheartedly believe that early educators
should be paid fairly for the vital work they do – and so, in
theory, confirmation of significant rises to the national living
and minimum wages should be positive news for the sector.
And yet, given that staffing costs account for around
three-quarters of setting outgoings, the reality is that the
combination of wage increases and rises to employer national
insurance contributions will make it increasingly difficult for
early years providers to remain viable unless these rises are
matched by increases in early years funding - particularly given
the government's plans to move towards a single minimum wage for
all adults.
As such, it's absolutely vital that early years funding rates for
the next financial year accurately reflect these increased cost
pressures if we are to avoid sharp fee increases for parents and,
in the worst cases, settings forced to close altogether.
"Given the government's previous emphasis on the importance of
the early years, it is both frustrating and disappointing that
today's Budget made no mention whatsoever of our sector, despite
announcements of additional funding for schools and further
education. Looking to the future, the government must make clear
its long-term plan for the sector and how it will ensure that
funding consistently reflects the cost of delivering high-quality
care and early education. We look forward to working with
ministers to make this both a priority and a reality."
