Challenged by Conservatives in the Commons earlier this month to fund the rise, Education Secretary Bridget Phillipson said: “We will set out more detail on funding rates in due course.”
However, the Early Years Alliance said 95% of childcare providers were set to increase fees if the government did not mitigate the combined impact of NI increases and the rise in the minimum wage.
Chief executive Neil Leitch said: “We are in the middle of the biggest expansion in the history of the early years sector, one that the government says is key to supporting parents to work and, in turn, boosting the economy.
“It makes absolutely no sense, therefore, for the Treasury to turn a blind eye to the potential impact of these changes on our sector.”
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