Ï㽶ÊÓƵapp

By Rachel Lawler

The Alliance has criticised the 2020 Budget after the Chancellor failed to announce any new funding for the early years sector.

The Budget focused on a number of measures designed to mitigate the financial impact of the coronavirus. These included a pledge to scrap business rates for companies in the retail, leisure and hospitality sectors with a rateable value below £51,000, statutory sick pay for all employees told to self-isolate and Employment Support Allowance for self-employed workers who are not eligible for sick pay.

Elsewhere, the Chancellor announced that VAT on digital publications would be scrapped and increased business rate discounts for pubs from £1,000 to £5,000.

Missed opportunity
Neil Leitch, chief executive of the Alliance, commented: "We’re incredibly disappointed and frustrated by the lack of any reference to the early years in today’s Budget. 

"The government knows that the early years sector is woefully underfunded; that every month, hundreds of nurseries, pre-schools and childminders across the country are being forced to shut their doors because they simply cannot make ends meet any longer; and that many of those providers managing to stay open are being forced to charge parents higher fees for extra hours or additional goods and services to plug the growing funding gap – and yet still it chooses to ignore this problem. 

"The current situation simply isn’t sustainable, and with the national living wage projected to increase to £10.50 an hour by 2024, things are only going to get worse. 

"Today was a chance for the government to commit to tackling the childcare funding crisis once and for all. Ultimately, it will be parents and providers who will pay the price for this missed opportunity."

Find out more
National Living Wage to rise to £8.72 an hour