15 hours free childcare for 2 year olds - April 2024
15 hours free childcare for 2 year olds - April 2024
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seismic22

Original Poster:

662 posts

193 months

Sunday 21st January 2024
quotequote all
Hi all,

With the introduction of 15 hours free childcare a week in April 2024 I have had a letter from my boys nursery discussing the matter and ultimately concluding that the rate they get paid by the government is "considerably lower" than what they currently charge us and so they are going to charge us a top up fee...... (technically they cant do this but it seems like other nurseries, they are going to charge a rate for "consumables" which is apparently allowed).

I appreciate that the 15 hours is only for 38 weeks of the year, not the full year so the funding actually equates to 10 hours a week but what I do not understand is them saying the rate they are paid by the government is below what they charge? From reading the government and my local authorities websites regarding rates paid to nurseries for two year olds, the current rate appears to be £7.16p/h with this increasing to a possible £8.17p/h in 24/25.

My nursery charges £65 for a 10 hour day, so £6.50p/h....... I will be not be bothered at all if someone points out I am totally missing something as any help at all with nursery fees is welcome but at this moment in time I cant seem to figure out where the rationale is for charging a top up fee? Can anyone enlighten me? Thanks.


Simbu

1,882 posts

198 months

Sunday 21st January 2024
quotequote all
I would be careful about the government's funding information. The stuff I read stated "average funding per child", which I bet will include children who get additional funding from UC, disability benefits, and other means tested benefits. So, if you're not eligible for any of those, your child's specific funding is probably lower than average.

We use the same number of hours as you and we're expecting a nice dent in childcare but certainly not the majority. Our nursery is £76 a day grumpy

seismic22

Original Poster:

662 posts

193 months

Sunday 21st January 2024
quotequote all
For this years rate I am working from this:


Smurfsarepeopletoo

973 posts

81 months

Sunday 21st January 2024
quotequote all
seismic22 said:
Hi all,

With the introduction of 15 hours free childcare a week in April 2024 I have had a letter from my boys nursery discussing the matter and ultimately concluding that the rate they get paid by the government is "considerably lower" than what they currently charge us and so they are going to charge us a top up fee...... (technically they cant do this but it seems like other nurseries, they are going to charge a rate for "consumables" which is apparently allowed).

I appreciate that the 15 hours is only for 38 weeks of the year, not the full year so the funding actually equates to 10 hours a week but what I do not understand is them saying the rate they are paid by the government is below what they charge? From reading the government and my local authorities websites regarding rates paid to nurseries for two year olds, the current rate appears to be £7.16p/h with this increasing to a possible £8.17p/h in 24/25.

My nursery charges £65 for a 10 hour day, so £6.50p/h....... I will be not be bothered at all if someone points out I am totally missing something as any help at all with nursery fees is welcome but at this moment in time I cant seem to figure out where the rationale is for charging a top up fee? Can anyone enlighten me? Thanks.
Do you do a full 10 hour day, as most nurseries will give a discount for a full day, so if you only have them in for 5 hours, it could be £40 for the half day, which would then mean that the nursery is working at a loss.

Some local authorities may take a cut of the money given by the government, so although the government say £7.16ph, it could be £6.50 getting to the nursery.

Wages and utilities are all going up, at my wifes nursery, the utilities went from around £5000 to £15000 this year.

Staffing is a massive problem as its a low income/massive responsibility role.

Staffing for 2 year olds is a ratio of 1/4, where as 3 year olds is 1/13 or 1/8 ratio depending on qualification of staff, so obviously staffing costs increase.

The closure of nurseries will increase massively over the next 12/18 months due the below.

From September 2024, 15 hours of free childcare will be extended to all children from the age of 9 months. From September 2025, working parents of children under the age of five will be entitled to 30 hours of free childcare a week.

Gordon Hill

2,412 posts

39 months

Sunday 21st January 2024
quotequote all
Simbu said:
I would be careful about the government's funding information. The stuff I read stated "average funding per child", which I bet will include children who get additional funding from UC, disability benefits, and other means tested benefits. So, if you're not eligible for any of those, your child's specific funding is probably lower than average.

We use the same number of hours as you and we're expecting a nice dent in childcare but certainly not the majority. Our nursery is £76 a day grumpy
Disability benefits aren't means tested.

seismic22

Original Poster:

662 posts

193 months

Sunday 21st January 2024
quotequote all
Smurfsarepeopletoo said:
Do you do a full 10 hour day, as most nurseries will give a discount for a full day, so if you only have them in for 5 hours, it could be £40 for the half day, which would then mean that the nursery is working at a loss.

Some local authorities may take a cut of the money given by the government, so although the government say £7.16ph, it could be £6.50 getting to the nursery.

Wages and utilities are all going up, at my wifes nursery, the utilities went from around £5000 to £15000 this year.

Staffing is a massive problem as its a low income/massive responsibility role.

Staffing for 2 year olds is a ratio of 1/4, where as 3 year olds is 1/13 or 1/8 ratio depending on qualification of staff, so obviously staffing costs increase.

The closure of nurseries will increase massively over the next 12/18 months due the below.

From September 2024, 15 hours of free childcare will be extended to all children from the age of 9 months. From September 2025, working parents of children under the age of five will be entitled to 30 hours of free childcare a week.
He is in nursery 3 days a week for the full 10 hours each day so they are charging us £6.50p/h and from the local authorities website, receving £7.16p/h and with this increasing a little more in 24/25 to some extent. The local authority would have to be taking a cut of more than 66p an hour for the nursery to be at a loss but given I am going off published local authority rates (as above) for the total amount p/h that a nursery will recieve, I am not sure there is a cut.

It'll all come out in the wash I guess. I will try and speak to the nursery about it but I am always slightly hesitant in doing so as there isnt any other nursery round here I'd be happy him going to and they are slightly militant in their comms with parents to the extent I wouldnt be surprised if they'd kick him out for me questioning them!! biglaugh

Edited by seismic22 on Sunday 21st January 19:44


Edited by seismic22 on Sunday 21st January 19:46

Simbu

1,882 posts

198 months

Sunday 21st January 2024
quotequote all
Gordon Hill said:
Disability benefits aren't means tested.
I guess I meant "conditional benefits"