Nursery World - NLW a challenge for childcare employers

New analysis highlights the pressure put on nurseries by the introduction of the National Living Wage.

The report by the Low Pay Commission, the independent body that advises the Government on the rate, has found that while employees have gained, some employers have faced challenges, with social care, childcare and horticulture highlighted in particular.

Around 1.6 million workers aged 25 and over were covered by the introductory £7.20 rate when it came into force in April.

There were also ‘ripples some way up the pay distribution’ with women, part-timers and younger workers particularly benefitting.

Responses varied on the impact across competitiveness and pay.

Half of respondents anticipated an effect on profits, and this response was more common in the childcare and hospitality sectors.

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