Anyone else’s nursery fees now go up at 3 years old?

[lightcreamer]

So when my first DC got his 30 free hours at 3 years old (having had nothing before that point) by bill went down £550 a month - it was amazing!

Now my DC2 has just got 30 free hours, age 2, and the bill has gone down about £250, which is fine, I understand that nurseries are hard up against it etc. But I’ve just seen the fee sheet and it says the fees go up at age 3 years now because of less govt funding.

So it’s flipped on its head a little bit from when I had my first DC. Pretty disappointed to see this!

anyone else’s nursery the same?

Yes it's a very common tactic of nurseries to suddenly start charging more per hour and for consumables once funded hours kick in.

Our bill only went down about £400 a month last year but we are still very grateful even for that.

We don't expect to see much difference to our budget until they are both in school.

Its because funding rates your local authority gives for 2 abd 3 year old are different and change with time too

Also the way your setting let you use the funding hours and top ups around it

I just can’t get my head around how they’re more expensive at 3. Surely they’re easier, less nappies (my nursery includes nappies, wipes, cream etc in price), more kids to teacher ratio. It just confused me how 3 year olds are more expensive than 2 year olds when it used to be the total opposite!?

They aren't more expensive but it sounds like there is a bigger gap between what they get in funding and what it actually costs to look after the child. They get a much lower hourly rate in funding for 3-4 year olds compared to 2 year olds.

Funding for 3 year olds is half the amount than 9 month olds. So the nursery has to make it up elsewhere

Yes same here ... I'm actually paying £2 more a day than I was in March when she was only entitled to 15 hours. It's because they have increased their prices due to funding for younger children they're making up shortfalls everywhere. I think for those of us who have already paid the mega fees from age 1-3 years twice (like you I also have an older child) and were looking forward to reduced fees again it's a bit of a shock. I can only feel relieved we did at least benefit a bit from the 15 hours being introduced last year.

the funding rate drops dramatically once a child moves into 3/4 year old funding. I’m a childminder and, whilst I don’t charge for younger funded children, I am going to rely on contributions from parents once their child lives into the older age group. I won’t be able to survive otherwise.

These are the local funding rates for my area

Under 2s - £10.28
2 year old - £7.72
3+ - £5.34

You can now see that they cannot survive on the 3+ funding rates.

Yep same here. It sucks!

So basically the 30 hours funding is a load of crap. What’s the point lol

It's still a significant contribution to your childcare costs.

However they are allowed to look after more children! 1:8 or 1:13 (if teacher status).
So actually, they’ll be making £42.72 per hour per staff member.

Childminders cant. They can only look after 3 children, unless they have an assistant.