We believe that if costs incurred from the planned increase to employer National Insurance Contributions and National Minimum wage are not mitigated, nurseries will have to increase fees parents pay, reduce staffing (and thereby the number of places offered), or close due to no longer being viable.
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Private, voluntary and independent (PVI) providers will not be reimbursed for employer NICs & business rates whilst schools and public nurseries will. PVI nurseries receive some government funding, but they need to be sustainable.
The costs faced by PVI providers could mean that they will have no option but to increase parent fees.