Nurseries invited to take part in National Living Wage survey

The NDNA’s National Living Wage Impact Survey calls on nurseries to disclose numbers of staff currently paid at National Minimum Wage, forecasted payroll costs when the National Living Wage is implemented, and the likely impact it will have on the cost of delivering funded sessions.

The survey, which has been launched today, runs until 31 July.

The National Living Wage for over-25s, announced in the Summer Budget, will be set at £7.20 from April next year. It will rise to £9 an hour by 2020.

NDNA will use findings from the survey in its response to the Department for Education’s (DfE) call for evidence on nursery funding.

The association says that the DfE must factor in the increased cost of paying staff the national living wage into its review. It warns that a ‘meaningful uplift’ is crucial for nurseries to be able to provide the free places sustainably.

Purnima Tanuku, Chief Executive of NDNA, said, ‘Many thousands of people who work in nurseries are paid at, or close to, the National Minimum Wage of £6.50 per hour.

‘The national living wage represents a 10.7 per cent pay rise for nurseries’ lowest-paid employees.

‘While we support the National Living Wage in principle, and want to see better remuneration for the talented and dedicated people who work in the sector, this will have a huge impact on nurseries’ pay rolls at a time when increased business costs and chronic underfunding are already causing a financial squeeze.’

She added, ‘There are so many factors that nurseries have to consider, such as, if their lower-paid staff receive a 10 per cent wage rise, how will they maintain their pay differentials? 

‘We want to really understand the financial picture and nursery owners’ and managers’ projections for the months and years ahead, so that we are armed with clear, accurate information to take to the Government.’

• Take the survey here