It is, of course, perfectly reasonable that the cost of services will increase with the wages paid to those providing them; this story is saying that people providing (in this case) nursery services have been paid far too little for far too long.
The neoliberal project carried out by Margaret Thatcher, John Major and David Cameron’s Conservatives, along with Tony Blair and Gordon Brown’s New Labour, has distorted working conditions in the UK and the increase in the minimum wage (it isn’t a ‘National Living Wage’, no matter what title Osborne gives it) – a sop to working-class Tories, to encourage them to keep voting for such distortions – is merely highlighting them.
From April 2016, employers will be required by law to pay their workers aged 25 and above the National Living Wage of £7.20 per hour. According to the report by the specialist property adviser, Is the National Living Wage Creating National Living Rage? – The perspective from UK Businesses, the childcare sector’s primary concerns are that increased wage costs will be ‘reluctantly, but inevitably, passed on to parents through fee increases’.
The report reveals that discussions with prominent UK operators indicate that nursery fees are potentially set to increase by between four to six percent.
However the report cites evidence gained by the National Day Nurseries Association (NDNA) that suggests that fee increases may need to be closer to ten percent in order to meet the costs of the NLW.
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