To be a bit thrown by a 7% hike in nursery fees?

[MaidofMuswell]

We got an email last month about a new fee structure that was quite hard to follow as this particular nursery’s emails tend to be but was clear fees were going up. Anyway - have got the invoice and they’re up 7% on last month. Both kids have excellent carers who I love and don’t want to move them especially as one starts school in September, and if the money is largely going towards pay rises then fair play, but the communications haven’t mentioned anything about this. I’ve emailed to ask if the numbers are right and whether staff will be getting a pay rise as it just feels like since the nursery got bought by a chain it’s been steadily more expensive and providing less in terms of activities etc and want to raise it with a central office person if there isn’t going to be an improvement in staff wages at least. Suppose my question is - if it’s not going towards raising pay of what I know is a typically not great paid job, aibu to think 7% is a big hike in fees?

My nursery's fees went up 70%! So 7% isn't too bad a rise!

Costs are rising in the early years sector, with 30 hours being underfunded, minimum wage rising, and very narrow margins. You can ask about staff wages, but I don't think they are under any obligation to tell you.

Jesus - 70% I think we would have to give up work! Do understand it’s a pressed sector and can see they’re not under an obligation to share the info - just feels like the whole sector is so poorly prioritised by government compared to countries like France or Germany where funding is so much better that lovely independent nurseries like this used to be end up being squeezed out by the big chains with economies of scale to absorb the risk and then put profit first. Will get off soap box now 😂

But wages aren't the sole cost for a nursery. Rent, mortgage, insurance, heating, lighting, water rates, council tax/business rates, furniture replacement, decorating, supplies (arts, crafts, books etc), food, drinks, etc etc. All these need to be paid for and all are increasing in price. Overall I think yabu, 7% isn't that great given the circumstances.

I assume wages will be going up due to the increase in minimum wage. Also the funding nurseries get from the government doesn't cover their costs.

6% rise here, just as my second is about to start nursery 😭
It's so hard and we have had to sacrifice a lot! But the nursery is brilliant and the staff are happy and have been there a long time, which is a good sign, so we just have to suck it up.
I am going to be jumping for joy once the youngest starts school though 😂

An increase in minimum wage, compulsory pension requirements, and people having to increase pay to hang onto staff as a proportion of qualified caters plan to go home to Europe I guess.

If the email wasn't clear, that's poor and maybe you should have queried it at the time.

I don't think it's unreasonable to be unpleasantly surprised when any bill goes up 7% but there has been a lot in the news around the difficulties in this sector. This is one of the side effects of the move to a National Living wage but I don't think we can begrudge the staff that.

I am going to be jumping for joy once the youngest starts school though

Check how much out of school club costs first. Although my childcare costs went down when they got the 30 free hours, they stayed exactly the same when they went to school because full time childcare minus the 30 hours costs the same as full time wrap around.

The min wage rise will be having a huge impact on their costs - it's over 6%. Add in rising bills everywhere else too... it's not a cheap business to operate

It must be financially hard having young children in Daycare but we all know fees have to be paid. How many saved for this before having children ? Not having a go but i have saved for my retirement and my funeral because i know i will need to pay, Childcare fees dont come out of the blue, so why not save for them ?

Ours went up by 10% in January with no prior warning. I'm all too aware of the issues nurseries face but obviously getting a note of an increase with the bill is difficult to accept when you have no choice!

Understand everyone’s point of view here - I guess it’s likely the individual nursery not being unreasonable but I do think the sector as a whole is underfunded. I also think the whole structure of things is a bit impossible. It’s pretty hard in my industry to reenter at the same level after any significant career break; it’s also hard to cover the costs of a home big enough for us and kids - rent or mortgage on one salary - it’s also hard to cover fees. We are doing, and we did save and are continuing to budget for it but it just feels like govts elsewhere in Europe (friends and family in Spain, France, Germany and Sweden) help parents of young kids more. And actually pensioners from what o understand. @lowlandLucky it does feel increasingly common in uk now to look at things from that sort of perspective rather than a broader societal one and I’m not sure it’s helpful.

I’m 49 and work in a nursery. I have a relevant degree and manage a room and get £8.40 an hour. The industry doesn’t ever pay well.

We’ve had to put fees up for private children to cover what we lose on funded children.

it just feels like govts elsewhere in Europe

Did you miss the 31st January?

You're completely right about re-entering OP. For that reason, you have to see this period as an investment rather than a cost. You're investing in maintaining your career until you no longer need childcare. My DC are grown up now and I've been a high earner for a good number of years. That wouldn't be the case if I'd taken anything more than a very short break when they were young.

Sweden is always used as an example in these cases.

VAT is 25% in Sweden.
The lowest rate of income tax is 32% and paid on everything over c. £1600 equivalent.
It's 52% on incomes over c. £37K and 57% on over £53,000

On the whole, people in Sweden are happy to pay it and understand it's required for their high quality infrastructure. History shows that in UK, people (voters) would never accept such high taxation and any party to suggest it would have no chance at all of getting the opportunity to implement it.

I think that's probably hit the nail on the head about what I find sad about this country sometimes - and I am the proudest Brit on so many other fronts, volunteered in 2012, love the creativity and the humour and the history of tolerance but feels like that's sliding a bit and this culture of each for themselves coming in. I think our media ecnourages voters to be more like that when on so so many occasions we show we are really good at pulling together and keen to. Anyway - gone on mental probably hormonal rant now sorry! Can obviously cover the 7% increase cutting out take aways and other crap and would never begrudge the carers decent pay, they're flipping heroes and it's mega hard work.

@MaidofMuswell try living in Ireland where childcare is more a month than most people’s mortgage. You would cry if I told you what I pay for my kids. I also pay tax on my income at well over 40%

And you will have more childcare when they are at school as you have longer holidays Stickybeak, you also have to pay contributions towards school eg books

We still have it quite easy in England compared to you!

Minimum wage is increasing by 6.2%. Normally nursery workers are on minimum wage and salaries are the largest cost of running a nursery The rest of it will just be normal inflation increase to cover rent, bills, toys, etc.