Just a quick query really. DS had an awful CM, so we moved him to a nursery where he is very happy but the way they calculate the fees is very confusing to me (maybe I am just a bit dense). The nursery is situated within the grounds of a school though independant from it. They work out the fee on a yearly basis (Sept-Aug), calculating how many days the child will be there in a year (obviously minus bank hols) and dividing that by 12 so you pay a standard amount every month. So far that seems straight forward and works out nicely insofar that we know where we are financially every month. We were informed there would be an increase of £2 a day to our fees, thats fine. Now, we are due to start paying this years fees from next Monday (by DD), the first full year DS has been there. We received our yearly invoice last week and our payment has shot up by almost £80 a month. Apparently this is because now, instead of minusing 8 days from the beginning of the year (bank holidays) and working that into our monthly fee, we will now get credited the following month after bank holidays for the bank holidays in that month. Also, DS is due to receive his free childcare place in April next year and so we will get an amended invoice in April. Surely this is just too confusing. or am I being dense?
First off, it sounds like the nursery is very nice to be deducting bank holidays from your fees, this is not standard practice as nursery staff also like to have their bank holidays paid alongside most other working people.
The practice of calculating your fees over the year and dividing by 12 months is standard.
Our nursery does not take off bank holidays, but I would assume in your case you just multiply your daily cost by the 8 bank holidays and divide over 12 months which will probably come to why your fees are £80 more a month (inclunding the £2 increase). If daily rates are £40 per day, then 8 bank holidays equate to £320 which over 12 months is £26.67 per month. If your child is full time, then with a £2 increase per day, at roughly 20 days a month (£40) it looks likely that it could be £80 more a month. The good news is every bank holiday month you get a rebate.
Tbh a £2 is pretty high unless they haven't raised their prices in a few years.
Your invoice in April will depend on the nursery. Most nurseries will give you an amended monthly fee but some may credit lump sums to particular months, it depends how much the nursery can afford to subsidise. Expect to get (very approximate) £1800 per year or £150 a month. This varies from council to council.
DDs nursery charge for the time she attends as she attends them so we have a high bill during the term time and no bill during the holiday. We get charged for the bank hols in term time as she would usually be in nursery but not if they fall during school hols so we do quite well. It is an expensive £60/day though. Thankfully we get 2 days a week funded with 2 year funding (DD has special needs)