Childcare new year increase

[Rattusn]

I'm curious how much parents have seen their providers increase fees/childcare providers have increased fees for the new year, either as absolute numbers, or a percentage increase?

We recently had a large increase, which we cant afford as our pay is remaining static (a pay cut in real terms).

Ours hasn't gone up at all. In face our childminder still charges what she did when DD1 first went 5yrs ago, and that's in London!!

I'm a childminder and I've put mine up to £42 per day, a £2 increase (Yorkshire). Food, energy and group / activity costs have all increased in the 3 years since my last increase so parents can either have some costs passed on or I can cut what we do and where we go :(

I do absorb as much as I can and feel bad putting prices up but it can't be helped.

It's probably because the government is expecting childcarers to provide more free hours, for less money. The free hours are chronically underfunded.

Do you mean the free 3 year old entitlement? I don't think my cm even provides that.

I did mean the 3 year old funding. My rates have increased approximately 2%

Glen and hsm those both sound like very reasonable fee increases.

Our nursery fees have increased by 4%

There have been increases in the minimum wage and employers being obliged to make pension contributions.

How do the new rates compare to other local nurseries?

My CM hasn't increased her rates in the 5 years we've been with her. I think we've been quite lucky although I think new starters since then have been charged a higher rate.

I started childminding in this town nearly 6 years ago. I haven't put my fees up for existing family, but have put my new family on a slightly higher rate, which will see them through till the baby starts preschool. If another family starts in 12/24 months, I might put them on a slightly higher rate again.
Sounds complicated, but saves having to have a conversation with existing families about rate increases.
I can only wish for £42 per day though. I get £33.75 for a nine hour day and my hourly rate is more than the council 3 year funding rate.

If your childcare provider has put up their fees, they are not doing it for 'fun' or to make you 'poor'. It's called SURVIVAL. Too many parents expect to pay peanuts for the care of their child but pay through the nose for the care of their dog or cat!
Suck it up!

Speak to them. Is there something they can control? Is it a large setting and have other families complained? If it's a childminder is there anything you can do between you, send lunch or maybe even offer a service in return? I cut my friends children's hair and do some other things in return for some hours childcare.

8% increase for nursery (£4/day), but nothing yet from child minder, however her fees are already relatively high IMO, so hopefully they won't go up more.

4.6% increase at nursery, but in an outstanding work subsidised nursery where absolutely everything is provided - DC are dropped off with a change of clothes and that's it.

We're still paying under the going rate locally due to the staff subsidy and salary sacrifice element of paying for fees before tax.

poisonous that sounds like its hit a sore spot for you. It's a rather venomous post.

To answer deep this increase makes the fees approximately 50% higher than local nurseries, and more than 60% higher than some other local childminders. We live in a low income area and it seems to me like she might be pricing herself out of the market. We knew she was more expensive than other local providers when we signed up, but this fee increase is too much of a jump. The fees are more than my pre tax income, and we simply cannot afford it.

The fees are also far from cheap: more than any of those quotes here, and with a much bigger % increase.

Is there a reason you chose this provider even though it meant living on the cusp of it being unaffordable? You need to weigh these reasons up and see if they're worth paying the extra for? Providers are able to raise their fees as they see fit and tbh (in most cases) fees aren't high enough (for survival of the provider i mean, I understand people find fees hard to fund). As a childminder I was advised to put my fees up a small amount every year I.e. 10p a year instead of 50p every 5 years. It doesn't then seem like so much of a jump. Could it be that your provider hasn't raised theirs in so long they've had to make a bigger jump? Could you apply for help with fees? Look around at these other cheaper providers? Make cutbacks elsewhere?

I agree with loonytunes - we had this discusson recently about hiring out of rooms I'm a trustee of - my argument was it makes sense to put up the rate by pence each year, rather than not putting up for 5 years then needing a big hike. You 'make' more when inflation is low, but don't have to go for a big price hike when your costs go up as you have a slight buffer. Same for childcare seems to make sense.

However, reading your post about how much more she charges than other local care, id make enquiries about alternative provision to see what vacancies there are, then go back and either negotiate or hand in notice

We chose this provider as we liked her. It wasn't on the cusp of being unaffordable when we started, it's the sudden price increase of around 20% with little notice that has thrown us. We have also had a change in circumstances since she started.

Reluctantly we will probably have to move her, as we won't be able to afford the fee rise. We wouldn't be looking at alternatives if it wasn't for the fee rise, as we are happy with her care and she is settled.

Tell her. 20% is crazy. Also the fact that she is 60% more expensive than other local providers makes her pricing unrealistic. She must know this... but it is still worth having the conversation.

I would certainly have the conversation as she may prefer to do you a deal than find someone else.

What is she charging per hour or day compared to the average cm in you area?

If she is 50% higher then nurseries then change to a nursery or another cm if you can get jn

Blond,e

Sorry the phone is playing up. Blondes it's difficult to say what the average is in the local area, but this cm was the most expensive I saw before the fee rise.

The advantage of nursery, as well as being much cheaper, better resources and outdoor space, is that it takes the 3 year old funding and I don't have to pay full fees for all holidays, and settling in is free at the nursery too.

I'd expect a rise of 5-8% a year, 20% is just crazy unless her prices were significantly lower than the competition to start with. If other nurseries and minders are significantly cheaper, you could start asking for a place.