We started taking free hours as a favour to our parents and it's been nothing but a massive headache. Nurseries can do it more easily as they have favourable ratios and pay minimum wage, so if they have 8x3 yr olds per member of staff the numbers make sense.
Cms are unfairly discriminated against in this regard as the funding is universally capped at a level aimed at covering the cost of nursery care, not cm care, which is much more expensive (or should be) because ratios are so much smaller - cms can only have 3 x 3 yr olds.
If you take funding and no kind of top up in this area as a cm you lose at least 75p per hour per child, which for a 10 hour day is 7.50. not insignificant.
So we charged wrap around care for those who were funded, which significantly reduced bills for parents. I was willing to do the extra paperwork and get paid at inconvenient times to help out parents.
Until we were threatened by parents who demanded their right to free hours and nothing more. So now I don't take the funding. They can get free hours elsewhere, to the detriment of their poor child who was settled and happy.
We did not lose any other customers because of this, as they know their children are getting the best care, even though it's not free (or cheaper) anymore