George Osborne outlined plans to abolish National Insurance for employees under the age of 21. National Day Nurseries Association has welcomed the initiative.
Purnima Tanuku OBE, Chief Executive of NDNA said: "Nurseries will be interested in this extra help to recruit committed and ambitious young people into childcare and invest in their careers, whilst keeping a healthy balance of staff across the age range.
"We want to raise the profile of work in early years so it is seen as a career of choice and this small step will help open up opportunities.
"The Chancellor’s announcements on business rates however will be a disappointment to the majority of nursery owners."
The rates cap, although acknowledging the burden on businesses, will have little impact on the crippling rates childcare providers are already struggling under. Alongside this most nurseries have rateable values that are too high to benefit from the small business rates relief extension.
"The service nurseries provide of caring and learning for young children is of community benefit and this service is growing year on year as the roll out of funded places for disadvantaged two year olds continues. As such, nurseries in the private sector should be placed on a level playing field with maintained and voluntary settings and have the burden of business rates removed."