'Help us keep care affordable': Nurseries need budget support to cope with rising costs

29 October 2024, 12:00 | Updated: 29 October 2024, 12:04

As a nursery owner, I’m aware of the multiple economic pressures affecting both my business and the families we serve.

This budget is a critical opportunity for the government to address not just the rising operational costs but also the financial strains on workers and families.

Firstly, the rising cost of living, including essentials like housing, energy, and food, significantly impacts our staff and parents. Nursery staff are especially affected since wages in the early years sector are often lower than in other fields despite the level of training and dedication required. To retain skilled staff, we need the flexibility to increase wages, but this can only be done if nurseries receive support to handle rising operational costs.

The funding shortfall for "free" childcare hours also adds to the issue. While nurseries deliver these hours, the funding we receive from the government doesn’t reflect the actual costs of providing quality care. Covering staffing, utilities, and supplies is becoming more challenging without adequate compensation, and nurseries are left with tough choices—cut back on staff, raise fees, or risk closure. A fair funding model, aligned with actual delivery costs, would allow nurseries to focus on quality and retain valued employees.

Moreover, one area where the government can provide immediate relief is through business rate reform. Nurseries in England continue to pay substantial business rates, and a permanent exemption would help us reinvest in our staff and facilities rather than funnelling resources into rates that don’t directly support childcare provision. Temporary relief was granted during the pandemic, and making this a permanent measure would help nurseries maintain affordability and quality standards without passing costs to parents.

This budget is a pivotal moment for the government to take decisive action that supports both nurseries and the families who rely on them. As a nursery owner navigating these economic challenges, I hope to see measures that alleviate our financial pressures, including permanent business rates exemption and fair funding for free childcare hours.

As a working taxpayer, I want to see a budget that prioritises tax relief for families and individuals grappling with the rising cost of living. Specifically, I’d like to see adjustments to income tax thresholds, allowing more of my earnings to remain untaxed. Increasing personal allowances and expanding tax credits would also help working families retain more of their income.

Ultimately, addressing the needs of early years providers can have a significant ripple effect on the entire community. A budget that prioritises support for nurseries would not only help sustain quality childcare but also empower working families to thrive despite rising costs.

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Michele Davison is the owner and manager at Angels on The Park Nursery in Hackney.

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