The sector has warned that the announcement by the Chancellor to increase the national living wage by almost 10 per cent will risk the livelihood of many early years settings.
Delivering his Autumn statement today (22 November) in the House of Commons, the Chancellor, Jeremy Hunt, confirmed the national living wage (NLW) will rise to £11.44 per hour. The move is expected to benefit 3 million ‘low-paid workers’ by £1,800 over the course of a year.
Eligibility for the NLW will also be extended by reducing the age threshold from 23 to 21.
While the rise to the national living wage has been welcomed, sector organisations have raised concern about the impact it will have on providers without any increase to funding rates as settings prepare for the roll-out of the expanded offer next year.
