"I believe that day nurseies charge when the nursery is closed for holiday to cover staff holiday pay during the closure...is that ok?"
Some do, some don't, the same as some childminders do and some don't. Bear in mind that most nurseries only close for a week at Christmas when many parents are on holiday anyway as at other times of year staff holidays are staggered so it is less of an issue.
Charging during holidays is less of an issue for me than charging for Bank Holidays because it does tend to average out over the year - in fact it probably works out worse for the childminder because when a parent leaves they will leave at the beginning of the summer before the CM is on holiday!
The problem with charging on bank holidays is that it impacts unfairly on part-timers. Because most bank holidays fall on a Monday, if you charge for Bank Holidays you effectively charge 10% more for Monday than any other day!
So in summary there are four good reasons to only charge when you are open:
- It demonstrates that you are running a professional service
- It is fair to all customers, including part-timers
- Customers are happier
- You may earn more overall
There is only one disadvantage: you may need to put up your 'headline' rate. If you currently charge on bank holidays, 3 extra days at Christmas to make up a week and 2 weeks summer holiday (so 21 days in all) you would need to increase your rates by 8.75% to make up for it*. I know one childminder who put her rates up from £4.00 to £4.50 one year but said she was no longer going to charge during her holidays and the parents were delighted.
Oh, there is another disadvantage - you might decide not to take a holiday and stay open for the extra two weeks earnings. Whilst you will be a few £100s better off, by the time you have been working for 18 months flat out and still 6 months to go before your next holiday you will regret it.
- if you want to take 28 days holiday, including bank holidays, the same as the statutory entitlement for employees you need to raise your rates by 12.07%