Another nursery fees one...

[Floopyandtired]

My DS’s nursery is fully closed due to the public health crisis. They have sent several emails saying that although we aren’t obliged to, they will fold if we don’t continue paying full fees due to - amongst other things - high staff costs.

Given the government announcement to pay furloughed staff 80% of their salary, along with other legislation to help businesses, I asked the question whether they were still asking for full fees given they will now be getting additional help. And if they were still asking for fees, what would the money be going towards, e.g. would we get some “credit” when everything settles down, etc. I received an incredibly shirty response saying the company’s finances were none of my business but they would have to out “hundreds of thousands of pounds of loans” even if parents continue to contribute.

AIBU to ask why they still need full feels despite the govt. support? I’m genuinely asking because I admittedly don’t understand business. I want to be supportive but we’re struggling financially now so having to count every penny.

Thanks in advance.

I should add... before the gov announcement RE 80% salary contribution for employees we had already agreed to pay full fees, thinking of it as an investment in our sons future. I’m only now rethinking that decision because of the latest government help.

@Floopyandtired no advice sorry but watching with interest - sounds VERY familiar to a couple of emails from my nursery too and I'm wracked with guilt over what to do x

I would have thought a sensible thing would be, to pay full fees for next month and if they have sorted the government funding for wages, reduced fees to cover other costs?

We’ve been asked to pay 25% of fees as a retainer
I’d have paid normal fees if they’d asked but we now expecting both salaries in our home to reduce by 20% so less flexibility

I have heard the business has to pay the staff first before they get the refund, so perhaps they don't have the funds to pay them in the first place. I think there will be a time lag.

We're not being invoiced for April and then being invoiced 25% to keep my daughter's place which i think is fair - i would be gutted if they went out of business!

That’s so cheeky - no way would I pay them in full!

I’m a nursery manager myself - and we are working out what to charge the parents - it will literally be to cover the rent, bills etc - possibly to cover the 20% of the staffs pay not covered by the gov!

We haven’t worked it out yet - but will be as low as possible to stop us closing down

We’re not being asked to pay any fees from April. Our nursery is chain though so that might make a difference to the amount of buffer they have!

We’ve not been asked for anything at all which is a surprise. Our nursery operates as a charity though, so we can donate to help them get through this.

We've been asked to pay 25% of fees which for both of my children is £261 instead of £1019. The staff are getting the 80% wage thing. One of the nursery girls babysits for us and has told me what's going on with their payments etc so that's good!

I think they are out of order to say their finances are none of your business when they are asking for considerable financial assistance from you. They need to keep the goodwill of the parents, I would have thought.
In the current climate people need to be honest with each other.

It IS your business if they're taking from you AND the government for the same nursery place!
They won't need hundreds of thousands of pounds in loans as the government are making grants available. She's trying it on

Our nursery has said that fees aren’t refundable for March and won’t be charging for April. They were waiting to see what government help would be offered before making a decision for further months. I’m hoping that means that if we do have to pay anything, it would be a highly reduced amount. I wouldn’t be happy paying full fees given the help they will get from the government.

I'd be tempted to email them back and ask which is it, are their finances my business or not? Because if not fine, I won't ask any more questions and I assume they won't ask for any more money.

That would probably not be the best course of action, but god, the 'none of your business' email would have fucked me off!

I’d be hacked off to be asked for full fees, when their biggest outgoing is probably their staff and the majority of that has been covered.

I’m a childminder and asked for 50% as a retainer. If the government come back and say self employed can have the same as employed workers, I will give credit against future bills.

I don’t like to think of profiteering out of this and nurseries asking for full fees now sounds Like they are profiting a lot.

My nursery is charging me full.as I am.a keyworker, but I am managing my own childcare. It is shut to non keyworkers and they are not being charged but are invited to contribute.

I am the staff at a private school. We are going through similar. The government funds are not instant, our wages will be paid late and my boss is setting up a reduction for all, plus a honesty box type system according to family situations for those who can. Lots of families cannot pay, many of them are self employed. Rent for the premises is high. Catering companies also need to pay their staff, even if not working. Same for cleaning company. Insurances need to be paid. It's a knock on effect that is felt by many.

Furthermore, in my home, I have a single mum lady who works as a housekeeper for our family while I work. I also need to pay her.

So not just a case of paying staff. I think it is a matter of social duty. If you can, please do stick to your obligations because many people will feel the effects, despite government promises.

Initially we were asked to pay 50% but when the government announced the 80% wage coverage we were contacted to say that they were scrapping this and there would be no charge. It seems to wildly vary between nursery’s.

How big is the nursery to require hundreds of thousands in loans?

Personally I wouldn't even consider paying someone for nothing if they responded to my reasonable query rudely.

No charge for May-July and no price rise until 2022 after that on the condition that our dd returns once this is all over. They will do whatever they need to do to stay in business but it's very family based, and they really love the kids. Whatever is best for the kids and their families they will make work.

I’d be very unhappy about snotty emails telling me the finances are none of my business, let alone very suspicious. Usually when there’s a lack of transparency, there’s something going on.
If there’s going to be 80% coverage by the government, I’d be prepared to pay 20% to hole my place. That would be reasonable, given they will have a reduction in some running costs if they aren’t actually operating.

We’re a private nursery and asked for full fees before the government announced support packages.

Now, we’ve asked for 25%. They’re being unfair I think.

@vegansprinkle that’s really interesting. I have 2 DC at private school and the only concession we are getting is that the annual fee increase has been delayed to Jan 2021 instead of September. It has not been well received by parents at all. We all understand the school’s position and of course are happy to pay a proportion of fees, but the fixed running costs of a closed school can’t be the same as those of an open one. It feels like profiteering to me which seems immoral under the circumstances.

I think anything up to 50% is fair, as overheads (training/rent/insurance) will still exist without staffing costs.

I take the view that if we get paid, DS' nursery staff need to be paid.

(And DS' nursery are topping up wages to full pay for staff who can't work due to CV19)