This can't be right???

[RMWIFE]

Hi all.

My daughter attends afterschool club at her school. Its 3.20 - 6pm and costs £8. My youngest is about to start school in September and will also need to go to ASC. They've just sent a letter out saying they're increasing the fee's to £18 for reception children!!!! £18!!!! For other children it will be £12.
Ther're also increasing the breakfast club by £2 per child - now £6.50.
How can anyone afford this? This will now cost me £43 PER DAY for just wrap around care.
The school have sent a letter home explaining that because they haven't increased the fee's for so long they're running at a loss and need to increase the fee's to break even. They're non profit so as soon as they're back in the black they'll re-evaluate the fees.

So really, because they've gone wrong in the past the people that now need the service are being penalised. The letter also reads that unless the increase is accepted they'll close down the provision!
Arghhh! I'm so annoyed! Surely my childcare fee's should go down when my children start school!!!!!
I want to write a letter with my views. Can anyone give me some advice???
Thanks x

Get a childminder instead? Those fees are not viable.
Get together with other parents and see if you csn work with the club to manage the finances in a way that doesn't impact so significantly? Meet with the management committee. Or join it?

Thanks for your reply. I only work 3 days a week and the term time child care will be over five thousand pounds a year!!!
I will have to look elsewhere but it's such a shame. I'm going to put a case together - I work in accounts so it's right up my street!

Well you can write, but don't expect it to change its mind. They'll have thought it through very carefully and will be very aware of how it will affect people.
They can't continue to run at a loss that's not sustainable. The best you could hope for is a change to increase the fees more slowly.
Is there no alternative? Child minder?

That is a huge increase, I'm not surprised you're shocked OP. However I can't see what you can achieve by writing a letter, if they need to increase the fees to stay open then that's what they have to do. Perhaps they want to run down the ASC and think this will drop the numbers so much that they can claim it is unfeasible and close it down, it sounds as if the financial side hasn't been organised very well in the past and it's now viewed as a bit of a liability.
Would a childminder cost less?

I imagine, with these fees, it will simply close down altogether soon. I'd be looking for alternative provision. I think others will be.

I imagine a childminder would be a similar price. They're £4-£5 an hour here for each child.

Can you use childcare vouchers?

It can't run at a loss just to suit you. If that is what the costs are, then that is what they are, they aren't making a profit, they're just breaking even. You can use them, or you look elsewhere.

Suddenly my private school fees seem so much better value with free breakfast club for those over 8 from 7.30 am, small fee for younger ones. Then free care to 4pm, with modestly priced options after that. £5k is halfway to a private education in some areas!

Petts Wood what a daft comment! £5k per year is nowhere near private fees for 2 children - in any area! And the vast majority of private schools that do offer wrap around care charge extra for it any way??

OP - any way to change your working hours so you work 4 shorter days? And so don't need breakfast and after school club?

Petts your maths is wrong.
Private school is not £10k for two children in some areas, you have said yourself there are additional after school charges and the holidays are longer so more childcare needed then. So £5k childcare fees are not hallway to private school! Either that or the school your children are at is very cheap!

doubt it if it's anywhere near Petts Wood!!

That's an outrageous jump in price! My SW London/Surrey school has increased their fees to 5.50 for breakfast and 12 for care until 6pm. If you collect at 4.30pm, it's 5.50. Where are you OP? Childminders in our area can't compete with those costs.

All I can say is it's being badly managed financially if they need to increase by that much!

That sounds a lot for a school-based provider, but I am obliged to use a private breakfast and after school club as my children's school doesn't run one and there are no childminders who pick up from there. It costs £33 per child per day, so £66 for two! I get frustrated by the government's talk of helping with the costs of childcare, which seems to apply only to under 5s. I emailed my MP about it but got the usual vaguely-worded response

I was meaning £5k is half of some private school fees for one child, apologies if it was misread. Sadly being in SE London they are a quite bit more which is why I said 'some'. My point intended was one that I was finding value out of included wrap around care. I think I will go back to lurking rather than comment again - all too dangerous!

That is a crazy hike in prices!! What is the justification for reception children being more expensive?!

Fwiw my dds ASC is also £8 from 3.15pm - 5.45pm and they only charge £5.50 if you collect before 4.45pm.

It's what happens when (because they are not usually business minded) things like OoS Clubs don't raise their fees a little bit each year, to keep in line with costs. It means, when there is a jump, then it seems a lot.
However - 3.20 - 6pm is 3 hours (all childcare providers charge per hour or part thereof), so they are only charging £4 an hour for most of the children. That doesn't sound outrageous at all - it's many year since mine were needing childcare, but it was heading that way, then.

The Reception children price differentiation is ridiculous though, I'd agree, but maybe they are just trying to put people off as regulations are different for U5s ???

That is s huge price rise, and the new prices seem very high. I am Chairperson of our school's Wrap around club. We have recently put up prices to account for the increase in minimum wage and rent increase (last year). We we running at a loss, but mainly due to unpaid bills, which are being addressed. Our price increase was around 12% and the new prices are around £4.80 for breakfast club and £8.50 for after school club. These are comparable with other providers in the area, including a nursery which picks up from our school. We also discussed the need for a price rise, and the kind of increase we were considering, at the club AGM last winter, then gave 3 months notice if the new rates.

Your ASC price increase seems very steep and very quick, and the new prices seem very high, although obviously I have no idea how they compare locally to you. The discrepancy between Reception children and existing children is nuts! Ofsted ratios don't exist anymore, so there is no argument that u5s are required to have more supervision.

I'd suggest asking the club for details of how they've worked out their price increases. This might give you a better idea of their costs. It seems very unfair on existing parents to make up the errors if the past, then for future parents to reap the benefits if (!!!!) the prices go down later.

I'd also suggest canvassing other parents' opinions. If the bulk of the club clients truly can no longer afford it and will leave, then it is worth putting this to the club management and seeing if there is a muffle ground.

And look into local CMs quick!

The local company here (Somerset) charges from £8.50-£12.50 for 3:15-6:30pm for an assortment of after school infant and junior schools. The clubs not held on school premises are at the higher end and there is about £1-2 age differential.

Do 4 year olds need lower "staff to children" ratios? Maybe they got the maths wrong last year and had lots of reception children needing places (so need to make good some losses). Maybe they prefer to look after older kids so are trying to price younger kids away?

£18 seems a lot for 2 1/2 hours of shared childcare/crowd control.

I think I try to get a childminder as I am sure that would be cheaper that £30/day for both children.

I pay my cm £20 per day for after school care per child. So £40 per day for 2. That does include dinner though.