New analysis by the Family and Childcare Trust finds that 20,000 nursery workers (2) are being paid below the minimum wage.

Despite flouting the law, these nurseries are receiving millions of pounds of government funding every year through free childcare offers and subsidies that help parents meet their childcare bills. These poverty wages will leave nursery workers – many of who are parents themselves – struggling to make ends meet each week.

The Government is rightfully investing in childcare because of the important role it plays in tackling inequalities: it helps parents work and high quality childcare helps to narrow the gap between disadvantaged children and their peers. But this funding will only achieve its potential if it pays for high quality childcare with valued staff.

Today, staff over the age of 25 are entitled to a minimum wage of £7.20 per hour – adding up to about £13,000 a year – but the Department for Education’s own data (3) shows that 10 per cent of nursery workers are not receiving even this much. Increases to the minimum wage are the lynchpin of the Government’s strategy to tackle poverty – but this could be left in tatters without a crackdown on employers not meeting this minimum standard.

Twenty-two childcare providers have recently been subject to enforcement action from HMRC for non-payment of the minimum wage. (4) These recently released figures suggest that this is just the tip of the iceberg.

Ellen Broome, Deputy Chief Executive of the Family and Childcare Trust, said: