A survey of early years providers by the Early Years Alliance (EYA) suggests the measures announced in the Budget to increase employer National Insurance contributions (NICs) and boost the national minimum wage will ‘push the sector to the brink’ if funding rates do not take into account the extra costs faced by businesses.
As of April 2025, employer NICs will increase from 13.8 per cent to 15 per cent, with the per-employee threshold at which employers start to pay National Insurance reduced from £9,100 to £5,000 per year. The national living wage will increase by 6.7 per cent for employees ages 21 and over, and the national minimum wage will rise by 16.3 per cent for 18-20 years olds, and 18 per cent for under-18s and apprentices.
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