As the Member of Parliament for Bridgwater, I recently visited The Olive Tree Nursery — a well-run, caring, and committed early years provider in the heart of our town. Like many nurseries across Somerset, they are doing everything they can to give children the best possible start in life. But what I heard during that visit was worrying.
Rising staffing costs — driven by increased National Insurance contributions, rising wages, and general inflation — are making it harder for settings like The Olive Tree to stay afloat. That’s why I submitted a series of Parliamentary Questions to the Secretary of State for Education, asking what impact these rising costs are having on nurseries, whether there has been any assessment of the risk of closures, and whether the government has considered exempting nurseries from increases to employer National Insurance contributions.
The response I received was long on rhetoric and short on substance.
The government spoke of its ambition and quoted headline investment figures — over £8 billion for early years in 2025/26, an increase to the Early Years Pupil Premium, and expansion grants. But there was no answer to the specific questions I asked. No figures on the projected impact of National Insurance rises. No modelling of how many settings could close. No indication that the government had even considered an exemption for the sector.
Meanwhile, independent analysis tells a very different story.
The Early Years Alliance estimates that this year’s changes to National Insurance and minimum wage laws will cost the average nursery over £18,600 extra per year. A separate survey by the Alliance found that 95% of providers plan to increase fees, and two in five believe they may be forced to close permanently without urgent action.
What’s more, while the government has announced a £25 million grant to help with National Insurance costs, this support will only be available to public sector nurseries. Most settings are private or voluntary providers and are being left out entirely.
In Bridgwater and across Somerset, that creates a very real risk. Nurseries are being asked to deliver more for less, and parents are already facing higher fees as a result. Some providers are having to cut places, or stop offering government-funded hours altogether, because the funding simply doesn't cover the cost of delivery. This isn’t sustainable.
If the government truly values early years education, it must recognise that the decisions it is making is putting undue pressure on precisely the providers it relies on most. Ministers must act to ensure that all nurseries — not just those in the public sector — get the support they need.
Somerset’s children deserve access to affordable, high-quality childcare. And the providers and staff delivering it deserve fair support for the essential work they do every day.
