Nursery closed but we have to still pay?!

[Poppy1989]

Can someone shed some light on this matter please. My LO nursery has closed due to the coronavirus, but we have had an email stating that we still have to pay our LO's fees?!!
They may be shut for 6 months, and expecting us continue payments for someone where is won't be attending ?!
Is this correct?!! Can they do this?

Depends if you want it to be in business when you want it again I guess. If they make the staff redundant and close, you don’t have a nursery do you. The staff working there will not be able to pay their bills and will be redundant. It’s up to you but that’s the risk of not paying fees. I do understand you are not getting the service you are paying for but you risk getting no service at all when you want it again.

Bubbles has it in one. If you don't want to pay then you need to formally remove your child from nursery (giving the appropriate notice). But be warned that you may not have a nursery to go back to when this all blows over.

Blows over was a flippant turn of phrase to use but you get what I mean.

Simple solution for you Poppy.
Give one months notice, or whatever your contract says, and remove them from the nursery.
Then you won't have to pay beyond that first ,into.

We pay to the end of the month then That's it. In my opinion they shouldn't be charging for a service they aren't providing. I've lost my work due to this and can't charge my clients regardless. I think a retainer to hold the places would be better. Maybe 1/4 of normal fees.

That's fine Peppa, so long as you accept that the nursery may well go under and not actually be available for you to use in a few months time.

Fully understand what your all saying, but also my job and my partners job is uncertain at the moment, so with money an issue, and paying for a service that we're not using, it seems slightly unfair. I agree with maybe paying less, but this is something they will not do.
I thought perhaps they would have insurance they could claim off (as I know small businesses are doing this also)

They have insurance but the insurance won't pay out for pandemic.

Are you continuing to be paid? If so you should continue to pay them so that they can in turn pay their staff

If you're not being paid pull your child out

Yes this is a massive issue. My nursery hasn't even said yet. Many of my friends have been told they need to pay. I desperately want this nursery there when they reopen. That said, even if we pay there are no guarantees it will still be there. But by withdrawing our children it means they are unlikely to be first in line for a place when they reopen. It's lose lose.

What I do detest though is that I've heard stories about some nurseries taking dull fees off parents but then not paying the staff. This is anecdotal. Nurseries have also been given a business tax rates holiday but I couldn't work out the impact that will have.

Also, for some people it's not as simple as being paid so carry on paying. Some people don't know if it when they will be laid off and are clinging on to jobs by the day. Not everyone who uses a nursery has a solid job.

Also, this doesn't affect me now, but next year when I have two children under age 2, once i start putting my youngest in nursery to return to work after maternity leave, I will be making a loss on every day I work, as nursery costs around £80 a day per child (tiny reduction for second child and yes therr is some slight tax reimbursement). This is going to be more than I earn every day (after tax). Therefore I will be working at a loss until my oldest child turns 3. I have accepted that, and we have saved and saved to make this doable, as I think it's essential for my mental health and my long term career that I return to work ... but if that were now, and I was making a loss every day because I was paying nursery more fees than my wages even though my child wasn't even in nursery... I would find that difficult.

@surreygirl1987
You have explained that exactly how it is! Neither or our jobs are secure, but our child loves this nursery. They have said they are unsure if they will reopen at all depending on how long this virus lasts!
We will massively struggle to even pay rent and bills let alone nursery fees.
They have stated that if I pull him out of nursery because it's my choice, his space (if they reopen) will be given to another child on the waiting list. It's absolutely heartbreaking

@itwasalovelydreamwhileitlasted

Unfortunately no we won't continue to get paid.
They have stated if I take LO out of nursery due to this then when or if they reopen, his place will be given to another child on the waiting list

There's a lot on reddit about this in legal.

It's all to do with the wording in your contract.

But as others have said.

If you're happy to lose your child place. Then take them out. If you want their child's place. Then yes. Pay

However. Legally. If it's worded correctly in your contract. They can take you to court for non payment.

I think it's fair to be asked to continue to pay to keep your place but not to pay full whack - nursery owners will not be paying as much in variable costs and it's unfair of them to expect to take the usual level of profits. It would create a lot of goodwill if nurseries would lower their fees while they're not providing a service and explain to parents what they're doing.

Our nursery have said they are waiting for government statement on support for small business later today before deciding how they proceed - I've taken that (perhaps optimistically) that if they can get some support then that they can hopefully pass on some reduction (they've been completely silent on the subject of fees so far)

Mine have been suspiciously quiet but anything less than a 50% reduction and unfortunately I'm going to have to withdraw DS. It's sad because he loves it but I can't bankrupt my family to keep someone else's afloat. They're a big company, they've already confirmed their staff won't be paid for not coming in.

Hopefully there's some form of ECC provision when this ends, whether this is in three months or six months or 18 months. I can't spend over £1k/month securing a hypothetical space indefinitely. Not as a single parent in an unsecure job.

@DivGirl
This is exactly my point! In just over a month we have paid around £1,200 in fees and due to the fact he keeps getting colds after cold from there he's only been 12 times!! It's crazy to think they expect us to continue to pay for a space that in a few months time may not even be his! What if they can't afford to open again?! And we have all paid that money for nothing?! X

I understand continuing to pay the fees to retain the spot. However, not receiving a discount is insane if the nursery is shut and is now not paying for any food or consumables, electricity is obviously lower, ditto water. I understand wanting to receive payment in to cover staff costs and fixed overheads but to offer no discount to account for variables smacks of profiteering.

I'm cancelling dd2 nursery today as I'm probably not going to be working now for the foreseeable and she will start school next January.

Are nursery workers covered by the govt paying 80% of wages? If they are the nursery shouldn’t be charging full whack ( if it is the nursery owner should pay the wages, not the govt)

I assumed so. My nursery STILL haven't told us anything about fees but has been asked my loads of people. She said she'll email us tomorrow when she's had a chance to have a look at the financial implications over the weekend... intrigued to see what she says!

@DivGirl do you mind me asking, is your nursery one of the big chains? Just really curious about the staff not being paid for not coming in - one particular chain this wouldn’t surprise me in the least.

The two near me are both charging full rate to stay afloat, and are both paying staff in full. Great on the latter, not sure how parents are feeling though!

I dont understand how they would go under? Surely the government grants would cover salaries and the business would be in the same position as everyone else?

I think it seems ridiculous!