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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

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Original poster

Advice from other CM's on raising your hourly rate......

29 replies

Love2bake · 08/06/2008 14:11

I have two families that have been with me for over a year, and I want to increase my hourly rate from 3.50 to 4.00 per hour. Mainly because of increasing costs, also because 3.50 is quite low for my area.

How do others go about this. Do you just tell the parents or write a letter etc.

I find the whole money side of things really awkward and feel really nervous about just telling them.

Advise please

OP posts:

Are your children’s vaccines up to date?

Set a reminder

AmyAmy · 08/06/2008 16:00

I would write a letter to them stating why u are raising the rate and from when u are raising the rate. You should give at least a months notice or say from Sept as its a new school yr

southernbelle77 · 08/06/2008 16:02

If they have been with you for over a year then you can say that is time to renew the contract. At the contract renewal, you can say that your fees will be increasing. No doubt working parents get a pay rise every year so you are within your rights to do so as well.

HappyMummyOfOne · 08/06/2008 18:17

"No doubt working parents get a pay rise every year so you are within your rights to do so as well."

Thats a 15% rise, I doubt most parents had a 15% rise in todays job climate.

GordontheGopher · 08/06/2008 18:22

Fact of the matter is you can charge whatever you want. If it means that you could lose some parents then that's a risk you take - I would imagine if they are very happy with you then they'll stick with you. I'm thinking of doing the same from September.

KaySamuels · 08/06/2008 18:50

I do think 50p per hour rise in one go is a lot, can you not stagger the rise so 25p more for now, then again in say six to twelve months? Can understand why you want o raise them ut just looking at it from the parent's POV.

I am also thinking of putting my rates up slightly but was thinking 15p per hour more every September for example.

mollysawally · 08/06/2008 19:07

Love2bake - Being completly honest if my CM raised her price by 50p an hour I would leave, no matter how much I liked her.

50p an hour raise would cost me £70 a more a month.

SimpleAsABC · 08/06/2008 19:08

My dad has a chip shop, slightly different I know, but when his suppliers are increasing their costs, which is quite often @ the mo, he usually gets a letter stating when the change will occur and why, ie their costs increasing.

ABC

Original poster

Love2bake · 08/06/2008 19:16

I know it is a bit of a hike, but most of the other CM's in my area are charging between £4-5 an hour.

I include all activites and food in my price, so I do feel that it's a good deal for the parents.

Maybe I will put it up to £3.75, but just seems a bit of a faff.

OP posts:

NotABanana · 08/06/2008 19:17

I am interested in how much you earn in one day for one child?

Original poster

Love2bake · 08/06/2008 19:23

I have two children 4 days a week on £3.50 a hour, and have them 9 hours a day.

Then have 2 after-school children for 1.5 hours a day, they are on £4.00 a hour already (as they are new).

So at the moment about £75 a day. Then you have to factor in costs, tax, ins, reg fee's etc.

OP posts:

Original poster

Love2bake · 08/06/2008 19:25

I have my youngest starting school in September, so that will open another space which will up my daily income.

OP posts:

Dynamicnanny · 08/06/2008 19:43

Would love to earn £75 a day with or without tax

allgonebellyup · 08/06/2008 19:57

Dynamicnanny, i work as a nanny (and i take both my own children with me) and i earn £80 a day after tax!

think i landed a good one there...!

NotABanana · 08/06/2008 19:59

Mmm, better than I was expecting.

I did post a whole paragraph but I just knew someone would take it the wrong way and it would all kick off.

ThePrisoner · 08/06/2008 20:58

I put my rates up annually, which existing parents know about and new parents are told about before they start with me. I confirm it all in writing to all parents a few weeks beforehand.

Even though other childminders in your area might be charging more, I think putting your rates up by 50p/hour is a pretty high amount!

southernbelle77 · 08/06/2008 21:26

I was not suggesting that putting rates up by 50p an hour was either right or wrong, I was just suggesting the way I would go about it - ie, reviewing the contract.

I have yet to put up my rates for existing mindees and only charge a bit more for new ones.

elkiedee · 08/06/2008 21:39

As a parent, I'd find an increase of £22.50 a week quite a lot (50p x 45) - I think it's fair to increase the rates as you should be entitled to a rise, but that's quite a big jump. I actually think a slightly higher hourly rate for after schoolies, who do affect the shape of your day but obviously you get less, seems more reasonable.

Also, if you can fill your new place quickly you will be earning a bit more too. And surely having kids who've been with you a while and parents would help that.

Mum2Luke · 08/06/2008 21:54

At the moment I charge £20 per day for the 3.5 yr old as he's at nursery and I have him from 11.30 till picking up time at 5.30ish, I have his 2 brothers from 3.15 till 5.30 and I charge £40 each as I am available if they need me in the mornings as well as after school. That takes me to £180 per week and I take off £10 as they are siblings (prob being too generous here!). In the hols I charge £200 for the 3 of them and this includes meals, snacks and drinks.

In Sept the youngest starts school so he will be on the same as his brothers. To make up the loss I'll be charging £250 full time so they will really be paying the same as they do now.

I'll review their contract before the next hols as they will have been here 6 months. The way things are going with rising fuel and food costs though may have to have another rise in jan 09. I've already had to cut down on the type of snacks as its getting too expensive even at Lidl!

Original poster

Love2bake · 08/06/2008 22:10

Thanks for the advice everyone. I have decided to up it to 3.75 from September, so plenty of notice, and hopefully not to much of a jump for the parents.

OP posts:

stellabgh · 08/06/2008 22:20

Dear Parents,

I am writing to let you know that as of 1st August 2008 my rates will be £4 per hour. These rates are in line with other local childminders and I will still include everything which is currently included.

I hope you find this acceptable and are happy with my service. If you have any questions I'd be happy to address them.

Kind regards

Mum2Luke · 08/06/2008 22:25

I know they may think its expensive but we cms still are on lower than minimum wage for looking after something that is so precious as a child. Cleaners get more than we get, why do we have to feel guilty about raising our wages by a few pence?

I think with all the paperwork, training etc that OFSTED require us to do, we should get a wage that refects this but we end up feeling as though we should do parents a favour, I'm sorry for this parents but if we had to rely on this job as a main wage we would get nowhere. We certainly couldn't pay a mortgage and council tax out of our earnings ( or could we - are there any cms that do have cming as their main family wage?).
I know parents feel guilty going out to work, most don't want to leave their little ones, some can't wait to get to work - I know, I have parents who do this.

Original poster

Love2bake · 08/06/2008 22:33

Mum2luke - IKWYM

I could not be a CM if my DH did not have a regular income. At the moment it's all good because I am at full capacity. However after having my 2nd DS I could not find any work for 1 year. Being self-employed is a bit of a gamble for me - luckily we have DH's income to back us up.

I am currently doing an 18mth Diploma in Home based childcare course, trying to find out as much about EYFS as I can (I am booked on another course for that in July),then spend at least an hour a week on p/work..... it can be exhusting. Having said all that I LOVE the job, love the kids and love working from home, so I take the rough with the smooth

OP posts:

KaySamuels · 08/06/2008 22:53

Love2bake - I could have written that post myself, am in just the same situation.

mollysawally · 08/06/2008 23:35

Mum2luke - I understand what you mean but if CM's charged minumum wage or higher then it wouldn't be worth most parents returning to work.

At the moment, it is only just worth me working, if my CM was much more expensive I would be forced to give up work.

And then no one would earn a living, not the parents or the CM's, IYKWIM.

HappyMummyOfOne · 09/06/2008 07:42

"we cms still are on lower than minimum wage" - that only applies where there is only one mindee, most childminders dont have just one mindee so its not really a direct comparison.

Also childminders can off set new toys, utilities and numerous other tax benefits so in reality the wage is only part of it. The utilities would be the same if you are a SAHM anyway. Registration is extremely cheap as not even £10 a month.

If cm's did charge the min wage (doesnt apply to s/e people though) then people simply wouldnt use them and would look for alternatives.

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