News

Petition urges Government to exempt PVI nurseries from National Insurance

A petition calling for all nurseries to be exempt from employer National Insurance Contributions (NICs) has been signed by nearly 1,000 people.
PHOTO: Adobe Stock

The petition, started by Karen Richards, owner of Wolds Childcare and National Day Nurseries Association’s (NDNA) Nottingham network chair, warns that planned increases to employer NICS and the National Minimum Wage, will mean nurseries have to increase parent fees, reduce their number of staff or close due to no longer being viable.

It argues unlike maintained settings, PVI providers will not be reimbursed for the rise to NICs.

According to analysis by NDNA, the NICs increase, along with statutory minimum wage rises from April, will add an additional £2,600 per employee in England and Wales and £2,200 per employee for Scottish nurseries.  

Karen Richards said, ‘I have initiated this petition to urge the UK government to exempt private day nurseries from the new National Insurance charges. Nurseries play a vital role in supporting families, the economy, and early childhood development.  

‘However, these additional costs place immense financial pressure on already struggling providers, risking closures and reduced childcare availability. Exempting private nurseries, in line with school-based early years provisions will protect this essential sector, ensuring affordable childcare for families and allowing nurseries to continue delivering high-quality early years education.’

NDNA’s chief executive Purnima Tanuku commented, ‘Early education and childcare providers are facing a perfect storm at the moment. From historic underfunding to a raft of rising costs from April, including the changes to NICs. 

‘This petition is a chance to send a clear message about the importance of our crucial sector and the need to think differently about how we support the people delivering high-quality early learning opportunities for our youngest children. 

 ‘If the Government is committed to giving children the best start in life and growing the economy then something has to change in their early years policy.  

 ‘Ministers must fully fund providers for places they want them to deliver for children and families and stop placing additional burdens on the sector, leaving nurseries and parents to pick up the pieces.’

  • Sign the petition here