Ahead of the Budget, the Chancellor, Rachel Reeves, has announced that the Government has accepted the Low Pay Commission’s recommendation for the national minimum wage to rise by 6.7 per cent next year, boosting the pay of 3 million workers.
From April 2025, the National Living Wage will increase from £11.44 to £12.21 an hour.
According to the Government, the rise in minimum wage is worth £1,400 a year for an eligible full-time worker, while the rate for 18-20-year-olds will rise by £1.40 per hour from £8.60 to £10.00 – the largest increase on record.
The National Day Nurseries Association (NDNA) has however raised concern that the ‘substantial hike’ in minimum wages will vastly increase early years providers’ salary from April 2025. And, without funding rates keeping pace with wages, it has warned it will be ‘impossible’ for providers to deliver the expanded 30 hours offer.
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