The Institute for Public Policy Research (IPPR) found that those working in private daycare settings earn an average of just £6.80 per hour, while their peers in the maintained sector earn £9.70.
It said that low pay is undermining efforts to raise the quality of early years provision, blaming low qualifications and the absence of a clear career ladder for restricting the demand for higher skills, thereby holding down wages and quality.
In a report entitled For Love or Money, the IPPR said that an early years career framework should be established by the Children's Workforce Development Council or by an early years pay commission, with wage floors at different professional levels. It said that providers should not raise their fees to cover the increase in salaries, as the average cost of childcare to parents is already very high, and suggested instead that the Government top up the wages of early years workers.
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