Hi,
I really hope you can help me - am very confused! Sorry this is a bit long winded.
I have just enrolled my daughter in a new nursery
She's 4 in April, so is entitled to the early years funding. But as she only does 2 days at the nursery, she only receives 12.5 funded hours a week, out of the 20 hours that she's there.
Therefore I have to pay a top-up for the 7.5 hours a week that are not funded. That's all fair enough.
The nursery claim they do not have an hourly rate. However, non-funded children are charged £45 a day (for a 10 hour day). Therefore if my daughter received no funding, I would be paying £390 a month (£45 2 = £90 a week; £90 52 = £4680 a year; £4680 a year divided by 12 = £390).
The nursery have asked me to set up a standing order for a monthly payment of £323.69, which they say is the correct charge for my daughter with the funding.
I was not expecting it to be so high! When I queried it, they told me that funded children are charged at a 'higher rate' than non-funded children. In other words, the 7.5 hours a week that I pay for are charged at a higher rate than the £45 a day charged to non funded children. When I asked them what the higher rate was, they could not tell me. However, I calculate it to be roughly £10.79 an hour, and therefore roughly double what they charge non funded children. (7.5 hrs a week * 4 weeks in a month = 30 hours a month; £323.69/30 = £10.79 an hour).
In addition, as their 'higher rate' is so much more than their standard rate, it seems to me that they actually make more money from a funded child, then they do from a non funded child. For example, they receive roughly 4 weeks of funding in May 2012. I understand that my local authority pay them £3.49 an hour for the funded 12.5 hours. So this means that in May they will receive roughly £174.50 in funding (12.5 * 4 weeks = 50 hours; 50 hours @ £3.49 = 174.50)
If I also pay them the £323.69 in May, then they will receive a total of £498.19 - that's £108.19 more than a non funded child!
I know they won't always get that much more, because some weeks are not funded, but on balance, they will get more overall from a funded child than a non funded child.
My question is - are they allowed to do this? And do I just have to swallow this much higher than anticipated charge, bearing in mind that they did not explain this to me beforehand, and that they appear to be making extra money from funded children, on top of what they would get if the child were not funded?
Really appreciate any help!
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Is my nursery overcharging me?
9 replies
OmarLittle · 14/03/2012 13:28
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