‘Under funded’ Suffolk childcare providers and MP Nick Timothy call for better government support

A childcare provider has asked how it is expected to survive when faced with a £250,000 increase to its employer National Insurance bill.

The provider outlined its fears during a meeting with other nursery owners and operators and Nick Timothy, the MP for West Suffolk, at The EpiCentre on Haverhill Research Park.

At the meeting, the providers emphasised how nurseries are experiencing pressure because they face unreasonable and constantly changing regulations, as well as the Government’s rise in employer’s National Insurance Contributions (NIC) – which took effect on Sunday.

The business operator, which did not want to be named, said it has to find another £250,000 because of the NICs rise and asked: “How are we as a small business expected to survive if people are told they can expect a free service but at the same time our costs, including business rates, energy bills and the demands of administration, have gone up.”

Another operator said: “We are trying to keep our heads above water. Yet the sector has been under-funded for 25 years.

“This funding doesn’t cover all of the things we need to do. We are expected to provide everything that a state-funded nursery provides but for a lower cost.”

Mr Timothy said: “Across West Suffolk, the early years sector provides an essential service in the initial education, nurturing and development of young children.

“I was grateful for the opportunity to listen to the providers, and discuss the serious challenges facing nurseries during the recent roundtable.

“In addition to the burden of regulation providers face, the sector is on the brink of crisis because the Government subsidises a portion of places while failing to cover the full costs.

“They are also being hit hard by business rates and the rise in employer National Insurance contributions, which has just come into effect.

“As in so many other sectors that provide crucial front-line services, this jobs tax will cause cuts in investment and staff recruitment for these nurseries. I will challenge ministers on these issues in Parliament.”

A Department for Education spokesperson said: “Giving every child the best start in life is central to our mission to break the unfair link between background and success, and our Plan for Change commits to getting thousands more children school-ready by aged five.

“That’s why despite having to take tough decisions to fix the foundations of the economy, we are raising early years funding by over £2 billion next year, including a targeted £75 million grant to support the increase to 30 government funded hours from September.

“We will continue to work closely with the sector to make sure the funded childcare hours remain fair and accessible to all parents.”