Bridget Phillipson was last night warned her flagship childcare plans are at risk of collapse because of Labour’s National Insurance raid.
In a letter to the Education Secretary, 27 leading organisations representing children, parents and childcare providers said families face being let down without urgent action, including relief from the punishing NI hike imposed by Chancellor Rachel Reeves.
From today, eligible working parents of children aged from nine months to four years in England can access 30 hours a week of government-funded childcare during term time.
But the early years industry has warned Ms Phillipson that she risks breaking the promise unless she delivers greater financial support for the sector and its workforce.
One in ten nurseries and childcare providers say they face closure within the next two years without help.
The letter, shared exclusively with the Mail, warns that ‘for too long’ the 30-hour offer ‘hasn’t covered the real cost of delivery’ – with nurseries and childminders forced to plug the gap.
But as a result of the Chancellor’s national insurance tax grab, the minimum wage rise and higher running costs, the viability of the system is now under threat, the providers say.
They are urging the Department for Education to give proper funding to cover rising national insurance costs, increase pay and training and support expansion of the sector.
Education secretary Bridget Phillipson (pictured) has been warned in a new letter that her flagship free childcare plans are at risk of collapse because of Labour’s National Insurance raid
From today, eligible working parents of children aged from nine months to four years in England can access 30 hours a week of government-funded childcare during term time (stock photo)
Failure to provide immediate investment would mean the policy ‘risks being an expansion in name only, with the reality being a system that is short on staff, short on places, and short on expertise’, the letter states.
It adds: ‘We welcome the Government’s plan to expand funded childcare hours. It reflects our shared ambition to support families, strengthen the economy, and give every child the best start in life. But right now, that promise is at risk of collapse.’
Sarah Ronan, director of the Early Education and Childcare Coalition, who signed the letter, told the Daily Mail: ‘The rate the Government pays childcare providers to deliver these hours simply does not cover the cost of delivery.
‘Add in the National Insurance hike and the early years sector is facing a perfect storm.
‘No matter how much they want to offer these schemes many providers are telling us it is unviable for them.’
The Department for Education rejected the claims last night. A spokesman said the sector was receiving more than £8 billion in funding this year and had taken on 18,000 more staff.
They added: ‘These claims are utter nonsense and misrepresent the huge positive impact we’re seeing among parents across the country.’
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