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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

Original poster

Apparently all the local CMs get together and agree to set their prices ... isn't that a bit ... you know ...

36 replies

doricpatter · 10/03/2011 13:27

I'm sure that's Not Right.

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shoshe · 10/03/2011 13:48

We do all know what each other charge, and do talk about it, but in the end we all run different kinds of businessess, and in the end we can only charge what market forces will allow.

letsgetloud · 10/03/2011 13:47

Definately happens in my area. One cm friend told me the childminders in her area had increased their prices so she had too.

Though as someone said. Childminders would be aware of other childminder prices by looking on the internet. I know not all of them state their prices but some do.

shoshe · 10/03/2011 13:46

I work within a network of about 8 CMs, we all charge different prices.

I charge the most £4.00ph, but include everything, nappies, food, outings, wet weather gear, all equipment.

Others charge £3.00 per hour, but charge for all the above.

Alot are inbetween.

upahill · 10/03/2011 13:44

This has been happening in my area for years that I know of!!

Thank God I don't need them anymore.

{going before a rant comes on!!}

Original poster
doricpatter · 10/03/2011 13:43

This is what the OFT says:

"Anti-competitive agreements
The Competition Act 1998 (the Act) prohibits anti-competitive
agreements between businesses. In particular, you must not:
? agree to fix prices or terms of trade, for example agreeing
price rises with your competitors
? agree to limit your production to reduce competition
? carve up markets or customers, for example agreeing with
a competitor that you will bid for one contract and they will
take another
? discriminate between customers, for example charging
different prices or imposing different terms where there is
no difference in the circumstances of supply.
Any agreement that prevents, restricts or distorts competition
is covered (not just the types of agreement listed above). An
agreement could be formal (such as legally-binding contracts)
or informal (such as unwritten ?gentlemen?s agreements?). The
Act mainly applies to agreements between businesses with
a significant combined market share. But even the smallest
businesses need to avoid getting involved in anti-competitive
agreements, such as cartels. The OFT can also assess whether
an agreement may affect trade between EU member states"

OP posts:
Summerfruit · 10/03/2011 13:40

I saw one of my cm friends this morning, I told her some cm in my street are charging 70-75 pounds a day therefore I have decided to also increase my prices. Mind you, I didnt increase for 2 years.

HSMM · 10/03/2011 13:40

We don't do that in our area. We all offer different services and mostly charge different rates. In about a 3 mile square from £3 - £5 per hour.

They don't need to have a meeting to 'fix prices', they could just check each others details on the internet.

Original poster
doricpatter · 10/03/2011 13:34

The wording was "we had a get together recently and I know they're all going to up their rate now but I've decided ..."

OP posts:
Original poster
doricpatter · 10/03/2011 13:33

Yeah I thought so. What can be done about it though?

£5/hr for the only source of childcare in a small town though - what options do parents have?

OP posts:
philmassive · 10/03/2011 13:33

I am an ex child minder and I'd be very surprised if it is done in a premeditated way. I know that new childminders joining the profession are encouraged to check out the local market and set their prices in line with what others are charging so as to ensure that they don't price themselves out of the market. I wonder if this is what's happening here?

Lizcat · 10/03/2011 13:30

That would be price fixing a bit well illegal.

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