The plans, which were put out for consultation by the Department of Industry until this week (Sept 22), mean that nurseries would not be able to include eight bank holidays in the current four weeks' (20 days) statutory holiday entitlement.
The DTI is proposing to increase the entitlement to 5.6 weeks (28 days) for staff working five days a week. Employees currently working for two and- a-half days a week would see their entitlement rise from ten to 14 days.
Claire Schofield, head of communications at the National Day Nurseries Association, said, 'What we will be saying to the Government is that increasing the holiday entitlement is fine in principle, but in practice it is going to make things much harder for a sector already struggling because of the impact of rises in the minimum wage and falling occupancy.'
She said increasing fees to cover the cost of more holidays would drive nursery occupancy down further and that additional direct funding was needed to help cushion the financial blow. She argued that nurseries were 'a special case' because they are labour-intensive businesses. Last year's Nursery World pay survey showed that 25 per cent of private providers include bank holidays in their staff's 20-day holiday entitlement.
Sofia Middleton, who runs two Kiddies Day Nurseries in the West Midlands, said that she would have to employ an extra member of staff to cover the increases. New staff at her nurseries in Kidderminster and Stourport get 21 days' holiday, including bank holidays.
'We are the largest childcare provider in our area and if it is going to affect us, then smaller providers will be seriously affected as well. I would like to increase the level of holiday entitlement on a time-served basis and not be forced to do it by the Government.'
Carolann Grewcock, who runs the 88-place Teddy 'n' Daisy's nursery in Coleshill, Warwickshire, said that the Government plans appeared to be 'another stick to beat us with'. She said that while the size of her nursery meant she was confident of coping with the additional financial pressure, she had spoken to other nursery owners who clearly feared they could be forced out of business.
But Tony Gernon, who runs four Happy Jays nurseries in Yorkshire and the north-east, said that bank holidays had never been included in the four weeks' holiday for his 78 staff.
'Our staff are hard-working and do a demanding job, so we don't see any reason why we shouldn't reward them in a way that is not directly pay-related, and one way of doing that is to offer them more holidays. We don't see it as an extra cost, because we have always done it that way,' he said.
John Woodward, managing director of Busy Bees, said that staff starting at his nurseries receive 28 days' holiday, including bank holidays, increasing to 25 days plus bank holidays after five years' service.
But he acknowledged that the changes could have a serious financial impact on small nurseries, and could force fee increases on top of rises to pay for annual hikes in the minimum wage.
From October, the minimum wage for staff aged 22 and over will rise to Pounds 5.35 from 5.05 an hour. The rate for 18- to 21-year- olds will increase to 4.45 from 4.25 an hour.
