Nurseries across the Isle of Wight are facing a financial crisis as rising National Minimum Wage costs, National Insurance increases and restricted funding policies push providers towards closure.
The latest Department for Education (DfE) funding rule changes – particularly restrictions on consumables and sundries charges – mean nurseries can no longer recover essential costs for high-quality provision. At the same time, local authority funding increases fall well short of rising costs, leaving many settings operating at a financial loss.
The DfE claims that these policy changes will lead to cheaper childcare, but sector leaders warn that the real impact will be lower-quality provision, fewer staff, and diminished early education experiences for children.
Without sufficient funding, nurseries cannot afford to cover the costs of:
- Learning materials and educational resources
- Specialist staff training
- Nutritious food and snacks
- Additional staffing when needed
- Enriching activities that support child development
These are not optional extras, yet they are not adequately covered by Government funding. As a result, nurseries will be forced to cut services, reduce quality, or close altogether, impacting children, families, and the early years workforce.
It’s known that some Isle of Wight nurseries are already hiking up their hourly prices to cover the lost revenue.
Diane Wycherley, COO at Tops Day Nurseries, which operates a nursery in Newport, has said:
“It’s time to stand up and be recognised for the vital role we play in shaping the next generation of the workforce. We are committed to supporting families and providing high-quality early education, but we must be financially sustainable to continue doing so. We cannot and will not remain silent while policies threaten the future of early years education.
Article continues below this advertisement “If the Government does not intervene, we will see nursery closures on a scale that will devastate families, communities, and the future of early education. We urge policymakers, parents, and the public to stand with us in demanding a funding model that allows nurseries to survive.”
Nurseries and early years organisations are now calling on the Labour Government to act immediately by:
- Postponing the 1st April implementation for at least 6 months
- Reviewing and revising the funding model to reflect actual costs
- Recognising the necessity of additional charges unless funding fully covers nursery provision
- Ensuring wage increases, National Insurance, and inflation are factored into funding rates
Tops Day Nurseries has formally written to the Secretary of State for Education requesting a 6-month postponement of these changes. If this request is denied, the organisation is prepared to seek an urgent injunction to prevent implementation under these financially unsustainable conditions.
