News

Sick pay costing nurseries thousands of pounds

Cash-strapped nurseries are facing a new financial struggle after
it has emerged that many are losing thousands meeting sick pay
costs.

Sharon Fairley, founder of the Little Flyers nursery group near Edinburgh, says she has spent £4,000 on sick pay in the past six months alone and this doesn't include replacement staff costs.

She said, 'The additional cost of sick pay, which is not something that can be budgeted for, comes on top of high business rates and funding issues, and will seriously jeopardise the viability of my company. To say I am angry and upset is quite an understatement.'

Employers have not been able to reclaim statutory sick pay - £88.45 per week for up to 28 weeks - since April last year. The Government has advised nurseries to claim Employment Allowance, a reduction in their Employer's National Insurance Contributions of up to £2,000 per year, to offset these costs.

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