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Original poster

Help! Need advice re: retainer fee for childminder

39 replies

YellowRoseofTexas · 03/06/2010 19:16

I'm going back to work in 3 months and am planning to place my son with a local childminder. Really excited to have found her--I think this is the perfect childcare solution for our family.

She is asking for a retainer fee (25% of the monthly fee) which in my understanding would usually be charged when a childminder is holding an EMPTY spot for a period of time. However, my son will join at the exact time another child leaves...I'm basically setting my start date by when the spot opens. Therefore, she has no lost wages, does a retainer seem unnecessary?

At the very least, I could see charging some sort of a deposit, that would cover her finding someone new if we pulled out. But with this policy we would be paying almost 1000 pounds before even starting childcare, which would not go toward her services!

Am I looking at this the wrong way? I want to do what's fair but as a new mom, I have zero experience with childcare. Please let me know your thoughts and experiences!

Many thanks!

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Original poster
YellowRoseofTexas · 03/06/2010 23:40

Hugely helpful, ChildrenAtHeart. Thanks so much, everyone! I will use all this information to discuss with her, but even if it is a lost cause (if she's convinced other parents to pay, she probably won't spend much time debating with me!), I am much more informed going forward in my search.

OP posts:
ChildrenAtHeart · 03/06/2010 23:28

I am a Childminder and have been for 10 years and my understanding is the same as many on here. Retainers are a standard practice but a retainer can only be charged for a space that is currently available and being held for you. If you pay the retainer you are entitled to utilise the space any time after you begin to pay it (as long as you give 'reasonable' notice - usually deemed to be a week)ie the Minder MUST have this space available. If however the Minder is currently full they are entitled to charge a deposit, often equivalent to a month's fee to secure a place that will be available in the future. This is normally non-refundable if you don't take up the space and is usually credited against either the 1st or last month's fees. I also charge a small admin fee to cover initial costs of contracts and other paperwork.
OFSTED have nothing to do with setting fees or ANY aspects of a childminder's business practice so this document she has quoted is nothing to do with them. I wonder if this is something from her Local Authority? In West Sussex we have training focussed on being more business-like, something childminders have not always been good at historically because of the very intimate relationships that often develop between them and the families they work with.
I would say that she is confused with terminology between deposits and retainers and would refer her to the National Childminding association (www.ncma.org) for guidance.

Original poster
YellowRoseofTexas · 03/06/2010 23:10

Mum2Bless, can you help me understand the following: "The childminder is covering herself just in case you change your mind and she looses money." It seems that by charging a non-refundable DEPOSIT (as you are for the child joining you in Nov) then she would be covered against possible loss if I change my mind. But instead, she wants to charge a RETAINER, meaning she's making money on the clients she has now, PLUS taking money for clients she'll have in the future.

She's come back to me tonight and said that retainer charges are endorsed by OFSTED's "Making Childminding My Business" handbook, and I should understand that she is a professional, not a babysitter, etc. (Which I do!!) And also said other parents are happy to pay to secure the place. (So basically playing me off of them?)

I can actually afford the fee but don't want to be taken advantage of, which is how it feels. Or is her approach to this fairly accepted and I'm being naive? (Doesn't seem that way by reading the other responses.)

Thanks again

OP posts:
MUM2BLESS · 03/06/2010 20:43

sorry me again. I am waiting for parent to let me have her requirements by ending of the month. As I need to plan ahead.

MUM2BLESS · 03/06/2010 20:42

Hi

I am a childminder who is holding a place for November. As I am dealing with siblings already I have only ask for a deposit which is non refundable if not taken up.

I think the retainer is expensive but childminders are all different in their practices.

I am trusting that it will still go ahead.

The childminder is covering herself just in case you change your mind and she looses money.

Some childminders will change more?

If it is too much you may need to look again.

pippin26 · 03/06/2010 20:31

Danthe4th - why would settling in sessions not be available. Settling in can be with the parent (therefore not within the minders ratios) or when there are less children there - so i am not sure about the statement you have made regarding that.

Perhaps the minder genuinely doesn't understand about retainers/deposits.

As to checking to see if there are any 'hidden' charges - of course that goes without saying but everything should be detailed in policies and procedures and also on the contract.

OP, i know i have already replied but why not talk to your minder and see if there has been a misunderstanding on either of your parts or if a compromise can be met.

Danthe4th · 03/06/2010 20:12

I would give her the benefit of doubt that she doesn't understand that a retainer can only be charged when the space is available. I would offer her a deposit of a months fee's to be used against the first months fee's.
If the space is not available presumably you will not be able to do any settling in sessions either.
If she is losing a mindee then she will be daft to not accept your offer and potentionally lose a good earner and have an empty space.
Call her bluff, give her the choice, if she says no then may be she's not the sort of childminder willing to work with you.
Check that there are no other hidden charges, ie sick pay, holiday pay and bank holidays as not all childminders charge them unless the child is ill or on holiday.

pippin26 · 03/06/2010 19:37

So you definately know that the minder has all three spaces of her under 5's ratio filled and that your child will be taking one of these spaces when a child leaves.
If that is the case, then no you shouldn't be paying a retainer on a space that is not currently available - it should be a deposit.

If however there is a space that is available NOW - ie she has only two spaces currently filled and has one available then yes the retainer fee is justified.

Original poster
YellowRoseofTexas · 03/06/2010 19:35

I would be happy to pay this as a deposit, especially as it is in monthly installments. (It would be 300 per month, which would be 25% of her fees. He will be with her for four long days per week.) But as a retainer fee that I'd lose, it does seem outrageous and I don't think I'd pay it.

She is fairly new to childminding so it could be that she's actually not aware of when a retainer would be warranted. She seems lovely so I am going to give her the benefit of the doubt. But knowing your perspectives will really help me in discussing with her.

Mumsnet is a godsend...thanks so much for your quick replies. Welcome any further thoughts or comments!!

OP posts:
Concordia · 03/06/2010 19:29

oh sorry, just read it again, 1000 is a great deal to be paying for a retainer that isn't needed. i would be tempted to stay away for fear that similar tricks would be pulled in the future.

Concordia · 03/06/2010 19:28

it sounds like it could potentially be quite abit of money (depending on how many hours you will have).
i would say you are happy to pay that amount as a deposit up front but i don't think it is technically a retainer if another child is currently filling the place.
however, if you really like the childminder maybe you are happy to pay it?

iheartmyboys · 03/06/2010 19:26

I don't know what is standard practice but this sounds outrageous!
IMO a deposit would be expected but not a retainer, especially as the space is not even free.

I would consider someone else if they pursue this. A £1000 is a lot of money to be wasting.

RosieGirl · 03/06/2010 19:26

Agree, CM could reasonably ask for a deposit, but a retainer seems unfair at this point.

CityChildminder · 03/06/2010 19:24

You are right
A retainer is charged when the place is already available. I would not charge anything in this situation,some cms may charge a deposit but it sounds like she is trying. it on tbh