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Rise in staff costs risks nursery 'casualties', warns NDNA

Business Funding
Three-quarters of nurseries are facing a hike of between 5- to- 12 per cent to their staffing costs due to the rise in wages and pensions from 1 April.

Initial findings from the National Day Nurseries Association’s (NDNA) workforce survey, which received responses from more than 450 employers and staff, shows that 58 per cent of nurseries will have to pay out between 5 and 8 percent more in wages and pension contributions from next month.

A further 16 per cent will see their wage bill rise by 9- to 12 per cent, and another 6 per cent believe their figures to be even higher, which the NDNA says reflects the fact that employers want to pay more to keep highly qualified or experienced staff above the minimum wage.

However, it warns that the ‘hikes’ in staff costs amid stagnant Government funding will ‘push up’ the deficit that nurseries have to absorb.

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