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More details on the implications of tax changes for early childhood providers will be provided by the DfE.

More details on the implications of tax changes for early childhood providers will be provided by the DfE.

06 November 2024  

According to the education secretary, they are investigating the implications of the tax adjustments in the budget for early childhood providers in further detail and will provide an update soon.

In the House of Commons, Liberal Democrat education spokesperson Munira Wilson and recently appointed shadow education secretary Laura Trott expressed concerns about how the increases in employers' National Insurance contributions would affect early childhood providers and whether early childhood settings would raise fees for parents. Bridget Phillipson, the education secretary, was responding to these concerns.

Trott questioned the education secretary about whether the adjustments would be reflected in funding rates. She reaffirmed the amount of money the Department of Education promised to provide to fulfil the enhanced entitlement.

"We are looking in more detail at what the changes mean for providers in the early years sector," she said in response to Munira Wilson, a Liberal Democrat. We'll be talking more soon. Naturally, in addition to the changes that are occurring, we are also raising the employment allowance to GBP10,500 and making it available to all qualified companies. Therefore, in 2025-2026, smaller providers might not pay national insurance at all.

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