Nursery fees up 20%

[chopette5]

Our nursery has put up fees 20%, citing rising costs and staff shortages. Is this reasonable? It's a huge increase for us in absolute terms (around £300 a month) and I don't know whether to try to fight it.

It's all extremely depressing.

What does your contract say? How often are they allowed up the fees??

ours says they can only be raised once a year in April

You can try but they may just tell you to go elsewhere. If they can't afford to run at their current prices they don't really have an option but to increase them.

The contract says fees are subject to periodic review. They increased fees 10% last year.

Say their costs are up 20%, is it fair to pass that entirely to the families and keep their own profits constant? This is more a philosophical question, I realise. They have every right to increase their fees and I can always say no.

I'm guessing like a lot of businesses they are just doing what they can to survive in the current climate. I doubt they would willingly increase them loads if they didn't have to because that would mean they would be likely to lose people to other options.

That is annoying and it’s an awful lot to go up by!

ours went up by 2£ a day last April - dreading it this coming april what it could go up by

not sure there’s much you can do except try and plead with them for a discount.

They should give you notice of fee increases that is long enough for you to give the correct length of notice to quit before they come in to force.

I doubt they would have made such a large increase without careful consideration. Energy price increases and the need to avoid inflation eroding staff pay probably accounts for most of it, plus general inflation driving up the costs of their consumables, maintenance etc

Mine have gone up a similar amount.

How could you fight it? You either pay or find an alternative.

Presumably they will either have to charge more or potentially shut. Quite a few nurseries near us are closing, due to staffing issues and costs.

If your contract allows it, your choice is pay, move or do alternative childcare..

They're a business not an ethical option for families. Most nurseries barely turn a profit anyway.

Just energy prices will be a huge increase for nurseries as they need to be a decent constant temp. Never mind the food cost increases, minimum wage increases and possibly more for staff retention.

It’s hideous for the parents paying but I’d imagine it won’t be the only nursery increasing prices by a bigger percentage this year. Costs to run it will have increased massively.

Ours have gone up 12%, it was already the most expensive nursery in our town and I guess some parents will be taking their children out if they can't afford it but all the nurseries my friends use have gone up anywhere from £4-10 a day recently. They sent a good break down of the costs involved alongside the news of the rise including energy price rises, wage increases (which they're giving across all staff to aid retention), food & nappy price rises. I don't think it's got much to do with profit and everything to do with the current crisis were in.

I was going to say the same. Business energy wasn't subject to the price cap. Ours where I work is up 500% and it will be going up again as we drop out of contract.

Food and wages could easily be another 10-20%.

It's these sort of increases that could lead to hyperinflation though isn't it? It's a big bill for most parents and with all our own mortgage/rent, food, energy, fuel etc going up we're also going to be asking for higher pay rises or shopping around for another job.

It's a big chain, and they're pretty corporate. The other local nurseries haven't increased their prices as aggressively.

I guess we can leave, but such a shame as my child is settled.

Say their costs are up 20%, is it fair to pass that entirely to the families and keep their own profits constant?

Have you looked at the accounts? How much profit are they making?

Some nurseries barely turn a profit at all. So if the "constant" is not far off the break-even point, then it's entirely reasonable for it to be maintained. It's in your interests for there to be a surplus - it reduces the chances of them suddenly going bust.

Some nurseries close every year through insolvency. There really isn't a swathe of evil fat cats making excessive profit

You chose a big chain. There's a reason they're a chain - they make commercially viable decisions.

I'm frustrated because they did a big increase last year too, it seems never ending. How many families can just magically find a few hundred disposable income like that?

Wow, everyone is so sympathetic...

How many families can just magically find a few hundred disposable income like that? Not many, the cost of living crisis is a huge worry. Sending thanks to our Tory government for fucking families over so badly.

How much is the day rate? We have private Montessori nurseries here at £75/85+ a day, others 9-3 term time only not much more than a one room set up, very basic, completely covered by funding, or about £4/5 an hour if not, if the former went up 20% it's very different than if the latter did.

Day rate is around £80

It was like this around the year 2000, when a big NI hike meant large nursery fee increases as the extra staff costs couldn't be absorbed. I think the different financial stresses since 2008 (v low interest rates, also low inflation) have rather overwritten what price rises were like during inflationary times. It's always painful, and you always feel like you're playing catch-up.

Inflation was considerably higher in the 70s - those of us who lived through that probably won't find the current interest rates and inflation levels as daunting as those who are encountering it for the first time

@chopette5

Day rate is around £80

Ouch. Same as ours for 9-5:30 , 20% on top would be difficult. Best they don't stretch funding either.
I think you're going to have to find a new nursery or at that price, a nanny

Same issue here , I had to put on pause the extra day we were paying for it as I can’t afford the 19% increase ;
on the other hand I also assume the nursery is claiming yet the whole 30 hours child care for this week and we have been told we cannot start from Wednesday the 4th of January as everyone else does , we have to start a day later on the 5th missing out on a further 10 hours ) only because we are not paying anymore an extra day to them .

It's a large increase but in these times alot of businesses are struggling so I guess they are doing what they have to to avoid going bust.

We're in a similar boat. Nursery are apologetic but say they just can't stay openat current prices and I believe them. Just another symptom of the cost of living crisis.