NDNA supports petition to exempt nurseries from NI contributions

March 28, 2025
Funding

Karen Richards, chair of the National Day Nurseries Association’s Nottinghamshire network, has launched a petition to exempt childcare settings from National Insurance contribution changes.

According to NDNA’s analysis, the National Insurance contribution (NIC) increases along with statutory minimum wage rises from April will add an additional £2,600 per employee in England and Wales and £2,200 per employee for Scottish nurseries.

Richards, owner of Wolds Childcare in Nottingham, said: “I have initiated this petition to urge the UK government to exempt private day nurseries from the new National Insurance charges. Nurseries play a vital role in supporting families, the economy, and early childhood development.

“However, these additional costs place immense financial pressure on already struggling providers, risking closures and reduced childcare availability. Exempting private nurseries, in line with school-based early years provisions will protect this essential sector, ensuring affordable childcare for families and allowing nurseries to continue delivering high-quality early years education.”

NDNA chief executive Purnima Tanuku said: “Parents and childcare providers alike are worried about the impact of these changes with 92% of parents believing nurseries should be exempt from NICs in the same way schools are. At the same time our latest research found that 96% of providers believed parent fees would have to increase as a result of the NIC changes.”

She added: “This petition is a chance to send a clear message about the importance of our crucial sector and the need to think differently about how we support the people delivering high-quality early learning opportunities for our youngest children.”

NDNA surveyed providers in January and February about their sustainability and the impact of NIC changes on nurseries.