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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To challenge the 22% price hike our nursery is trying thru?

98 replies

Blankiefan · 29/02/2016 22:19

Email today re: impact of National Living Wage and other above inflationary cost increases forcing a fee increase. I'd accept a reasonable increase but 22% feels excessive.

In an unrelated admin blunder a couple of months ago, the nursery sent an email to all parents without bcc-info the addresses so we all have all of the email addresses. AIBU to consider contacting all parents to organise a rebellion? I've no idea what this would look like

Maybe really it's more of a wwyd... I'd really rather not move dd.

OP posts:
Meow75 · 29/02/2016 22:22

Do the people looking after the country's pre-schoolers not deserve a living wage then?

It's not just about the increase to the hourly rate for the individual worker. It's the on costs such as greater employer contribution to NI.

Griphook · 29/02/2016 22:23

Are the staff getting a pay rise, the problem is the nursery is only as good as the staff, they deserve and want a good wage. If they are getting a reasonable pay rise then I wouldn't. If on the other hand they are getting an increase of 5p I would make a fuss.
The problem with most things is people can pretty much charge what they like.

SirChenjin · 29/02/2016 22:23

Bloody hell - that's a hell of a price hike Shock. I'd ask for a detailed breakdown of costs, especially those 'above inflationary costs' that we've all had to bear without the luxury of being able to charge our employers an additional 22%.

An all-in email sounds like a good idea - although I'm not sure of the legalities of that.

Katymac · 29/02/2016 22:29

Speaking as a nursery owner that is in the process of going bust.....tread carefully

Living wage, pension payments and proposed reduction in Early Years payments lead to viability issues - which will be hitting all over the country over the next few years

In my area 3 have/will be closed in less than 6 months

Original poster
Blankiefan · 29/02/2016 22:34

I'm all for my nursery being a viable commercial endeavour but the move from minimum Wage to national living wage is 7%. Energy costs are down. Food costs are down. Borrowing costs are down. I just don't see how they justify a 22% increase. If it we're closer to 10-12% I'd be more understanding...

OP posts:
RandomMess · 29/02/2016 22:34

As someone who sees the payroll costs in Education - the pension and NI changes have a huge impact plus the introduction of the NLW.

I would want clarification of the starting payscale for the staff tbh.

Do the 18 year olds get NMW or NLW? I agree if you don't pay well you'll get a high staff turnover which is not good in a nursery.

22% is one hell of a hike to absorb at short notice though.

Junosmum · 29/02/2016 22:35

It does sound like a horrific hike, however I can understand why they need it and that it isn't just greed. If it were me I wouldn't actually be able to afford it (it'd be an extra £150pcm) so would have to find other provision. I don't know what the answer is, living ing wage, the increase in freer hours and reduction in government funding is screwing early years provision and the cost being passed on to the customer.

RandomMess · 29/02/2016 22:37

Do they offer EYFS funding and not charge a top-up because in most places if they don't they'll be making a loss on every hour they provide...

Original poster
Blankiefan · 29/02/2016 22:39

No - they definitely charge top up. Basically you still pay your fees excluding the free hours x council rate.

OP posts:
Thymeout · 29/02/2016 22:41

Rates? Rent? Insurance? All of these are on the increase. My energy costs have also gone up significantly over the last year or so.

I agree with asking for a breakdown, but, with increased wages, too, I can see that the hike is not necessarily exorbitant. I imagine a nursery has the same sort of expenses as a care home - and they are certainly struggling.

Fedup21 · 29/02/2016 22:42

I can see this happening all over the place. Nurseries won't be able to survive the increase in costs and they will be forced to close. I know lots of people with small children now who can't wait for the increase in free hours to come in as they will have so much more money each month, but I just can't see it happening-there won't be any nursery places to move to.

Charlesroi · 29/02/2016 22:43

My back of an envelope calculation suggest that their wage bill will go up by just under 10% (assuming they pay the top NMW of £6.70p/h at the moment) A 22% increase seems an awful lot when energy costs haven't really risen either.

Katymac · 29/02/2016 22:43

I agree Random - my rise would have had to be between 40 & 60%, due in part to keeping my prices steady for about 4 years (big mistake)

Training used to be funded by the council with help towards staffing for level 3 & higher now even basic courses (first Aid & Child Protection) have to be paid for

Support used to be 6 weekly visits - now if you get a phone call a year you are either lucky or in deep trouble

EYE funding is paid at 60% of the normal rate with no option to top up from parents

VodkaValiumLattePlease · 29/02/2016 22:46

Energy prices may be going down, but the energy companies aren't passing on the savings - so it's a mout point really.

DrSeussRevived · 29/02/2016 22:51

When did they last have a fee increase?

They may have been keeping them down for a while. How do they compare to other providers locally?

If they buy in food from outside, the catering providers will also have rising wage bills.

You have no idea what is happening to their rent and rates.

lalalalyra · 29/02/2016 22:56

Ask them why it's going up and then decide if it's worth it.

The nursery I use is hiking their prices, but that's because the new owners intend to pay the staff properly to get good staff rather than the raft of teenagers the owner has been using recently.

Could it also be because they've realised that they've been breaking the rules re the top ups and are trying to cover costs another way?

WhoKnowsWhereTheTimeG0es · 29/02/2016 22:56

You can protest, but ultimately your only options are to pay up or leave, I would consider your own childcare position very carefully before starting to make waves. It is reasonable to ask for a breakdown of the cost increase but I don't imagine they are going to suddenly turn round and change their minds, especially if there are not many other nurseries locally or they have long waiting lists.

HanYOLO · 29/02/2016 22:57

It sounds like a lot and it would be reasonable to ask to see a breakdown.

But I think you might want to think a little before getting all shirty. All nurseries are going to have to pay the Living Wage (quite rightly) and the impact of that will be rather higher than just the published uplift to wages. Business rates are increasing everywhere.

HanYOLO · 29/02/2016 22:58

Katymac, I'm sorry to hear about your business's troubles. I've been on here a long time in different guises and remember you setting up.

Original poster
Blankiefan · 29/02/2016 23:01

This is their first increase in 2 years. I've asked for more detail on their cost increases. Just trying to get some context here.

The nursery isn't quiet but has spaces. Staff turnover is not terrible. A few other options close by but we like the nursery so may have to pony up...

OP posts:
HanYOLO · 29/02/2016 23:03

If it's not risen in 2 years then I think you're possibly being unreasonable.

IthoughtATMwasacashpoint · 29/02/2016 23:04

At the moment it would be handy if MNHQ put up a list of deleted threads somewhere. It would save hours looking for them when I forget to put them on my watched list.

There was one recently where the husband's parents arrived uninvited on the doorstep not long after they'd brought their new baby home and the MIL said something unforgivable to the wife. The husband was asking what to do. If anyone can remember what happened I'd be grateful for an update.

rollonthesummer · 29/02/2016 23:06

That was a random reply!

JeremyZackHunt · 29/02/2016 23:06

It may be a storm of changes coming at once, rent, business rates, living wage, static council funding etc. You could challenge it but they don't have to have your dc there.

Katymac · 29/02/2016 23:08

Thanks HanYOLO - 13 yrs & 2 outstandings are ending up at car boot sales

It's been a horrid month with another horrid month to go

Good luck OP

But the shops the nursery buy their resources from will be putting their prices up, the cleaning company will be putting their prices up, the training companies will be putting their prices up

I honestly think the rise in Minimum wage will lead to massive inflation all round