Nursery fees - Martin Lewis on This Morning

[rossKemp]

Did anyone see Martin Lewis on This Morning today? Apparently if nurseries aren’t providing you with childcare due to restrictions imposed by corona virus, you’ll legally entitled to a refund for services not provided.

What does everyone think about this?

[BuffaloCauliflower]

Legally you might be entitled and I’m sure you could demand it, but you might well find there’s no nursery to send your child back to when the time comes

[rossKemp]

Why not? When nursery staff would be entitled for furlough pay from the government?

[Floatyboat]

I honestly don't get why people have carried on paying

[LaureBerthaud]

I honestly don't get why people have carried on paying

Me neither but it's become a MN badge of honour to declare you're paying nursery/child minder/cleaner because you've not be financially impacted.

[FoxtrotSkarloey]

Because the nursery said it was what was required to keep my child's place! (Actually they've stopped as of
May, but that's what they said initially).

In terms of costs, furlough covers staff but not other costs, so I see why it's a challenge but would have hoped they could access loans?

[Lumene]

Ours is keeping deposits and shows no sign of returning or even reducing fees offset by them.

[HappyDinosaur]

Ours is 25% during this period, which I think is reasonable to ensure it will still be there when everything gets back to normal. Being entitled to something legally doesn't always mean it is the right or best thing to do. Everyone is in a different position.

[cstaff]

The 80% is covering staff costs but not rent, rates and whatever other costs are involved. This applies to all businesses though that operates out of a premises so I think nurseries are being very cheeky and using the fact that your child likes it there and you don't want to go through the ordeal of finding a new place and your dc getting used to it etc.

[Thefaceofboe]

Lots of small businesses are going to go under because of this, why do you think childcare providers are any different? They are underfunded as it is by the government

[Nofunkingworriesmate]

We were told we didn’t need to pay and obviously haven’t, childminders are different specially ones who weren’t official nor paying tax

[Thefaceofboe]

And it’s fair enough if you don’t want to pay, then don’t, but don’t complain when they aren’t there to provide you childcare anymore.

[Constantlurker]

Nurseries are no longer allowed to fulough their staff, so it's likely many will have to shut.

www.nurseryworld.co.uk/news/article/government-makes-u-turn-on-nurseries-access-to-furlough-cash

Not sure how the government thinks it'll get the economy back on its feet when half the workforce can't actually go back to work because nurseries have gone out of business!

[FoxtrotSkarloey]

@Constantlurker They can furlough staff, they just can't access double funding for the same staff member which seems fair enough to me.

I know it's being talked of as a U-turn, but it seems nuts if anyone thought the government was going to say 'hey, have some funding towards free hours, and oh look, here's some more for the same purpose'. I just can't get my head around how any sensible business person could have thought that.

[Constantlurker]

@foxtrotscarloey interesting point, I guess I'm confused because if the funding is for only aged 3 and up, what happens to the fees and staff salaries for those caring for 0-3yr olds? Surely that side of the nursery business isn't being funded by the government?

[LetsGoFlyAKiteee]

Nursery I work at shut because we weren't getting enough children in but stopped charging fees. Still bit confused by the situation but think some of our 80% is coming from the nursery itself.

Funding from goverment is only about 4/5 pounds per child so some nurseries were already struggling with that before this.

[FoxtrotSkarloey]

@Constantlurker As the article you linked to says, they can access furlough funding for the portion of income which comes from 'private funding' so as I understand it, that would be 100% of fees for 0-3 year olds and whatever fees they charge on top of government funding for 3+ year olds. It ugly and would need some detailed accounting!

[Comefromaway]

Martin Lewis is not an expert in contractual law or employment law (as those of us dealing with furloughing have found out.

If you have paid for a service and it is not being provided then, you are entitled to a refund.

If, however the nursery is asking for a retainer fee to save your place for when they re-open, that is a contractual matter between you and you can decide whether to pay it and guarantee a place for your child or not pay it, and risk you place being given to someone else. Essentially you are placing them on standby for when they are allowed to re-open which could be short notice or could be a long time away.

How popular a nursery is and how likely it is you can source alternative childcare when needed.

[Littlemissdaredevil]

There was a press release from the government last week saying that companies are not allowed to double charge and end up profiting from the furlough scheme. So basically companies can claim furlough but then only charge for the costs not covered by furlough (or by the free hours entitlement)