Parents issued nursery fee warning as budget hikes branded 'a recipe for total disaster'

manchestereveningnews.co.uk:

Parents have been warned that childcare providers could be forced to increase fees or even close following the recent hikes in national insurance (NI) and the minimum wage.

Chancellor Rachel Reeves announced a change to employers’ NI contributions in last month's budget - rising the rate of NI for employers from 13.8% to 15% and lowering the salary threshold at which employers start to pay the tax from £9,100 to £5,000 per year.

The government said it is expected to raise more than £25 billion for the Treasury. READ MORE: Beloved 'pioneer', 38, dies as coroner issues urgent warning The chancellor also announced that the national living wage will increase by 6.7% for employees aged 21 or older – from £11.44 an hour to £12.21 – from April.

As a result, the Early Years Alliance (EYA) has warned that parents will now face higher childcare costs unless action is taken by the government to help protect the sector from the impact of changes.