Who owns all these super lucrative nurseries in the UK?

[coxesorangepippin]

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Almost 50k per year to send a child to nursery?

Brother used to pay £50 a day, that's up North, and 8 years ago now.

Who is taking the profit from all these nurseries?

I'm not convinced there is massive anoubtof profit. Those £100 a day nurseries are in areas with high rents etc. Plus minimum wage has increased quite a bit. Also they probably want the premium stuff like dance teachers etc.

We're £65 per day 😢 It's bonkers!

Agreed, I don't think they are lucrative really. Staff costs, insurances, building rental and running costs.

I have family who run a nursery. The profit is really minimal to be honest. You have no idea how high the outgoings are if you want the nursery to be a pleasant place for your children to attend.

I don’t think they make loads of money.

for babies (up to 2yrs) the staff to child ratio is 1:2.

That’s why it’s so expensive. You’d pay a lot more than £100 a day if you paid a childminder for 10 hours a day like these nurseries offer.

im surprised they can do it so cheaply. After wages, there must be so little left

Dukes education?

Umm no, commuter belt Surrey, 10 hours at childminder is more like £60

It was £4k a month for two children.

Still outrageous though.

Where’s the thread about £50k to send one child to nursery? I only saw one about £40k for 2 kids. (Edit, sorry, £4K a month.)

And my son’s nursery (small chain of 3) were making net profits of about £400k a year. So yeah some of them do rake it in.

Haha I'd love to show you my tax return!

Essentially it's very expensive to provide childcare, none of it is cheap at all!.

Well the popular small chain of 3 nurseries in my area (outskirts of London) that is family run turned over nearly 10 million and made a net profit of just under 3 million so I would say there’s definitely money in it - taken from a body in Companies house public accounts

Nurseries help generate economic output. You put your kids in nursery, you go off to work, you earn money, you pay tax, you pay for nursery etc it goes round in a circle. All you're doing is working to put your kids into nursery. All in all it's just another spreadsheet with numbers on it. Nothing else.

They charge high because the costs are high. Rent and wages depend a lot on location.

I live in outer London and rents are sky high. You have a higher minimum wage here as well.

Insurance has skyrocketed over the last years.
Utilities are no capped.
Food prices have gone up.

It‘s a couple of years ago but I paid my after-school childminder the same hourly rate as I paid the nursery.

Dunno but the ones near me are shutting because of costs.

I lived on the edge of the M25 20 years ago and was paying £1000pm so I’m not surprised that it’s double now.( Utilities and rent never mind wage costs )

We're £85 a day and that's very good for this area (London commuter town).

Most are £95-100 around here, one is £110! And that's just a Busy Bees, nothing special, it doesn't even look very nice.

Nursery staff are very poorly paid and most nurseries treat their staff poorly. It is why there is a shortage of staff.

Wages plus about 20% for other payroll costs, including a chef and a nursery manager, business rates, rent, food, consumables like craft stuff, nappies, wipes, cleaning products, utilities, training, safeguarding, insurance including presumably public liability, maintenance of the rooms & building. I’m really not convinced my £103 a day actually goes that far

Can I ask a stupid question? Why do people use nurseries when childminders are so much cheaper ? I don't get it .

Mine all went to a childminder, she was absolutely brilliant and (admittedly was 9 years ago) but she only charged about £5 per hour per child as opposed to at least double if I'd have taken them to a nursery. She had an assistant and only had a handful of kids so the staff to kids ratio was good. She genuinely loved and cared for each child in her care and I still keep in touch now

She was also flexible week by week so I would only book her for what i needed each week (as I was, and am, self employed it worked much better)

for babies (up to 2yrs) the staff to child ratio is 1:2.

No, it's 1:3
Although, what people don't always remember to factor in is that all the places might not be taken.
So, over 3s can be in a 1:8 ratio, but as soon as there are 9 children, a 2nd adult is needed, but they might not have a full compliment of 8 more children.

@janicegarvey in areas where nursery fees are very high then usually childminder fees are equally high. I paid £10 an hour for my childminder. Which would have been about the same as a nursery place which was £100pd.

Plus, of course, the money the Nursery gets for all the places the Government keep marketing as 'Free' nowhere near covers costs, so for the Nurseries to balance their books, they need to make the paid hours more expensive than they would be if all places were paid for at a sustainable rate.

Gosh really 😳

It must vary dramatically- we're midlands and (last time I looked anyway) most childminders are around half what nurseries charge

Nurseries don’t get sick like a child minder could. They don’t take holidays, there is more than one adult for your child to get attached to so if one leaves you are not starting from zero. A nursery will always have children same age to pay with. A childminder could have 2 little babies and a 4 year old. If you have a second child no saying your child minder will have space and can fit in extra days you might need. Nursery’s have more capacity.

Thats not to say child minders might be the best fit for your child but there are some advantages to nursery’s too.

Nurseries also have a wider range of facilities than many childminders... garden area, sensory room, animals, preschool setup etc.

Also a childminder may have to take your child on school runs etc., nurseries don't do that.