While Government guidelines state a charge cannot be made dependent on a place, many nurseries require the additional money to make up the funding shortfall and to continue operating.
A Nursery World poll found that three-quarters (75 per cent) of providers are experiencing growing reluctance from parents to pay a voluntary charge. The live Instagram poll, which ran for 24 hours, was viewed by 192 users.
One nursery owner, who runs a setting in Worcestershire, said she thinks some parents have a preconceived idea that settings are ‘lining their pockets’.
She recently introduced a £5 daily charge for the few parents in her setting eligible for the 30 hours. She said each year she ‘experiences anxiety’ over whether she will survive the next 12 months.
The owner of Rutland-based little Angels Uppingham, Lucy Lewin, said she has ‘lost parents’ over her need to charge for consumables.
Andrew Harris, director of three Manchester settings said that funding does not cover the cost of delivery for any of his nurseries, and difficulties in obtaining voluntary contributions from parents mean he will ‘never take on a setting in a deprived area again’.
Extras
Ms Lewin introduced a charge for consumables of £1 per session (five hours) earlier this year. She charges £3.50 for two meals.
She said she wanted to introduce a charge of £1 per hour to help make up the £1.35 per hour shortfall in funding, but parents in her focus group were against it.
‘One parent told me I was greedy and trying to profit off something that should be free. I politely told her to look at my company accounts and find just where this profit is’, Ms Lewin said.
‘My rent is £35,000 a year and I operate graduate-led provision and offer parents flexibility. The difficulty I face is that there aren’t enough children in Rutland to childcare places. I operate a large setting of 85 places. Parents have a lot of choice in where to send their children.’
Ms Lewin added, ‘I can understand that parents are expecting a free place because that is what has been advertised to them.
‘There is such a simple solution to this issue which would be for the Government to advertise the place correctly – as funded, not free.’
It is a similar story for St Chads Pre-school in Cheshire. Chair of directors Sheena Partingdon said, ‘We have asked our funded parents to make a £2 contribution per month which goes towards resources, dance classes and any other extras such as nappies and other consumables.
‘We are constantly being met with either they cannot afford the contribution, taking offence to the suggestion as there shouldn’t be a charge, or just complete ignorance.
‘Additional funding for EYPP [Early Years Pupil Premium] and SEND help is now non-existent in our area, with a three-month review date delay and a limit on how many cases will get reviewed in that timeframe.
‘As a charity, we simply cannot continue with this business model to remain a viable service upon which our local community heavily relies.’
One nursery in the South East said in the last term, parents have become a lot more reluctant to pay a voluntary charge in order to take up their 30-hours place.
If this continues, it will have to change its charging model, which will mean less flexibility for parents.
Andrew Harris, director of Paintpots Nurseries Manchester, which operates three settings, said of families using his setting in Wythenshawe – reportedly the biggest council estate in Europe – that while there are parents who genuinely cannot afford to pay any contribution, others prioritise different things and some know how to ‘work the system’.
The nursery owner cross-subsidises funds from the other two settings to make the Wythenshawe nursery viable. He had to close his fourth nursery, also in a deprived area, in 2017 as it was no longer financially viable.
In the three nurseries, all parents are charged for meals and trips. Mr Harris said it is parents at Wythenshawe who are most likely not to pay.
He explained, ‘With trips, we often find parents who won’t agree to pay a small charge change their minds when they realise they are in the minority. We did a pumpkin trip for children from the Wythenshawe nursery and asked for a contribution of around £4. We had to tell parents that without the money we wouldn’t be able to take their children.’
He added, ‘As long as the Wythenshawe nursery isn’t a loss-leader, we will continue to run it as we know we can make a difference to children’s lives. However, I would never take on a setting in a deprived area again.’