Mon 25 Nov 2024
The Autumn Budget 2024 introduces several measures that could significantly impact your nursery business, both in terms of expansion and attracting more parents. Here are the top three key takeaways:
Increased Funding for Early Years Education:
The government has committed an additional £1.8 billion to support the expansion of government-funded childcare. This investment aims to facilitate the rollout through local authorities, with a further £15 million allocated to expand school-based nurseries.
Opportunity: This increased funding can help you expand your services, accommodate more children, and potentially open new settings to meet the growing demand.
Support for Children with Special Educational Needs and Disabilities (SEND):
An extra £6.7 billion has been allocated to the Department for Education, with a portion directed towards supporting children with SEND. This includes funding for free breakfast clubs in all schools and increased support for children with special educational needs.
Opportunity: By enhancing your services to cater to children with SEND, you can attract a broader parent base seeking inclusive educational environments.
Changes in Employer National Insurance Contributions:
The budget outlines an increase in employer national insurance contributions, from 13.8% to 15%, and a decrease in the salary threshold to £5,000. This change will significantly raise costs for nurseries, making the scheme uneconomical.
Consideration: It’s crucial to assess the financial impact of these changes on your business operations and plan accordingly to maintain sustainability.
By leveraging the increased funding and support for early years education and SEND, you can enhance your services and attract more parents. However, it’s essential to carefully manage the financial implications of the increased employer national insurance contributions to ensure the continued growth and success of your nursery business.
To find out more please look at the following links:
https://educationhub.blog.gov.uk/2024/10/31/budget-2024-education-send-childcare-private-schools-vat
https://www.gov.uk/government/news/government-protects-education-priorities-in-face-of-inherited-22-billion-blackhole
https://www.tax.org.uk/national-insurance-explainer-oct24