Nursery workers face pay cut to fund childcare

NURSERY workers’ wages may have to be cut to pay for the Government’s 30 hours of free childcare scheme, according to new research.

The New Economics Foundation think tank found nurseries would have to pay staff £7.33 an hour – below the national living wage of £7.50 for those over 25 – to break even without passing on costs for the plan.

It would mean a pay cut for 62per cent of the least-qualified staff.

Under the Government’s plans, all three and four-year-olds in England will be entitled to 30 free hours of childcare a week from this month, up from 15 hours.

On average, parents are charged £6 per hour for under twos, £5.30 for twoyear-olds and £5.10 for three and fouryear-olds – but under the plans the Government is offering £4.27 per hour.

The think tank said nurseries would look at making savings elsewhere, by cutting services or charging more for other extras such as food and nappies – leaving parents to fill the funding gap.

Lucie Stephens, of the New Economics Foundation, said: “It’s right that the Government is looking at ways to deal with the crippling cost of childcare for parents. But they have to put their money where their mouth is.”