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More than 1,000 providers respond to survey on minimum wage increase
OnMar 12, 2019
By Rachel Lawler
More than 1,000 providers have responded to a survey on increases to the National Living and National Minimum Wages due to come into place next month.
The Alliance launched the survey yesterday in a bid to gather views from providers on pending changes to the minimum wages.
National Living Wage increase
In April 2019, the National Living Wage, which must be paid to staff aged 25 and over, will rise of £8.21 an hour.
The minimum wages for staff aged 24 and under and minimum wages for apprentices will also rise next month.
However, the government has already confirmed that early years funding rates will remain frozen until 2020.
Frozen funding rates
The current funding rates are based on the government’s analysis of provider delivery costs in 2015. The rates have not be revised to increase inline with rising costs such as pension contributions, minimum wages and business rates.
Neil Leitch, chief executive of the Alliance, said: “I’ve already spoken to many providers this year who are struggling to balance the books and are incredibly worried about what increases to wages will mean for their business. But with a Comprehensive Spending Review due to take place later this year, this is a unique opportunity for providers to ensure that the Chancellor, wider government and the general public are in no doubt as to the severity of the challenges facing the PVI early years sector.
“The size of the response to our survey in just 24 hours shows just how vital it is that ministers pay attention – and the more responses we get the better placed we will be as a sector to demand the urgent action required on funding to guarantee the long-term sustainability of childcare in this country.
“As such, we would urge as many providers as possible to respond, and to make sure that their voices are heard at the highest level at this crucial time.”
Fair Future Funding
The Alliance’s Fair Future Funding campaign has been calling for funding rates to match the true cost of delivery since late 2016 and now has more than 7,000 provider and parent supporters.
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