Have you been affected by an increase in childcare prices? Vote in our ballot

Cash-strapped parents could face further hikes as nurseries prepare to increase fees following the rise in employers’ national insurance – and we want to know if you have been affected by costs.

It comes after a National Day Nurseries Association (NDNA) survey shone light on the financial struggles within England’s childcare sector, including nursery staffing costs which will soar by around 15 percent in April. The research of nearly 730 nurseries revealed that a large proportion of this rise is linked to National Insurance Contribution (NIC) increases.

As a result, around 96 percent of nurseries intend to raise their fees by an average of 10 percent, placing further financial strain on UK households. The NDNA has warned that the government will cover 80 percent of childcare costs from September, but are “unwilling” to pay their fair share, meaning “nurseries have to find this money from somewhere else or close their doors.”

Purnima Tanuku CBE, NDNA’s Chief Executive said: “The alarming results of this survey come just months before the biggest phase of the Government’s funded childcare expansion, putting this policy at risk. Nurseries do not want to be in this awful situation where they are forced to either significantly increase their fees to parents or face an uncertain future, with 14% of nurseries saying their business is at risk.”

“High quality comes at a cost and unfortunately the Government appears to be unwilling to pay that price. Instead we are left with a situation where they are increasing statutory employment costs, which impact hugely on nurseries because staffing makes up 75% of their expenditure – but not taking these increases into consideration when paying for childcare places,” added Purnima.

What’s more, the NDNA revealed that 92 percent of nurseries – up from 83 percent last year – said their current rates did not cover their costs. Of those respondents who know their new rates for 2025/26, around 85 percent anticipate losing money on each place.

Part-time nursery costs for children under two have soared by 7.7 percent from £150.89 a week in 2023, while full-time care has risen by 6.4 percent from £146.00 in 2023, Coram reports. It comes as education minister Stephen Morgan has vowed to protect parents being overcharged by nursery top-up fees. He told The Mirror the new guidance – published on Friday, 21 February – will be rolled out from April to ensure a “consistent approach” across England.

The Department for Education said it will ensure providers make clear that charges for things such as nappies, sun cream, and snacks, are voluntary. They warned the additional charges must not be included as a condition for parents accessing government-funded childcare hours.

Providers will also have to outline costs of chargeable extras on their websites by January 2026 to make the system more transparent. As childcare costs keep rising, we want to hear how these increases have impacted you. Vote in our poll HERE to have your say.

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