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The sector is warning of mass closures of early years settings without more funding now that the national living wage is to rise to £10.42 an hour from next April.

Yesterday, within his Autumn Statement, the Chancellor announced the national living wage, for workers aged 23 and over, will rise from the current £9.50 to £10.42 – an increase of 92p or 9.7 per cent.

While early years organisations, childcare providers and others in the sector recognised the need to increase wages, many expressed concern about the the impact it will have on settings, further risking their financial sustainability amid a cost-of-living crisis with inflation at a record high and energy bills continuing to rise.

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