Hourly rate increase

[Kitty B]

Hi. After 3 years of childminding full time I've not increased my hourly rate, I'm looking to put it up in January. I currently charge £4 per hr (I live in Swindon) I no childminders close by that charge £3.75 and the v odd few that charge slightly more than £4 or same as me. I feel I'm worth a pay rise and hope not to loose any children in doing so. Anyway unsure how much to raise it by: £4.10, £4.15, £4.20???

[AliceK]

I have parents who have been with me for 5 yrs and never had a price increase however over that time I have increased my hourly rate for newer parents. It does mean that different people pay different hourly rates but I don't mind that. I have thought about putting my rates up for all but then I worry that for some parents that increase might be the straw that breaks the camels back IYSWIM, although actually I'm not sure why I worry so much when all my parents seem to have numerous foreign holidays throughout the year and I can't even afford a UK holiday this year

In terms of difference my newer parents only pay 15p PH more than the older ones.

xxx

[TinyTinker]

I started minding 5 years ago at £3.50 p/h over the years I have found in necessary to actually decrease fees to keep in business! average in my area now is £3.00-£3.50......I am currently charging £3.20 and £3 for siblings!

I did however start charging for meals a year ago which I was previously doing for free - but I gave parents the option to provide their own lunches and just have a snack instead of dinner etc.

[BallyH]

I've been childminding 10 years now. And from my first child starting, 10 years ago, to a new contract being signed recently my fees have risen in total by £1. Each child, eyfs, seems to be on a different rate at the moment. Some differing 15p or less from the less expensive to the most. As each new child joined I would raise my fees for that child only. I don't tend to raise my fees once they are here as I know there is a time limit on it as they will have to go to school and someone new will replace them. School children pay a higher rate and they all pay the same. I did think about raising that but I have to be competative and I think i would loose some children for the sake of 10/20p per hour. See what other's in your area are charging.

[moggy]

I have put my fees up by 15p ph for all families (don't want to manage different rates for different families- too complicated for me and my simple invoice system!), done it twice so far- every 2 years. I tell all parents I review fees annually, I do not always put them up but I do review the situation. Never had a problem from any family. I give plenty of notice. I am one of the most expensive in my area but my fees are all inclusive.

[MrsP2C]

I've just done a fee review after 3 years the same and managed not to lose any children or hear any grumbles!

I ended up leaving my year round rate the same but have started charging for evening meal and asked school age children to bring packed lunch in the holidays.
I increased my TTO & ad hoc rate by 50p an hour which is quite steep but I don't charge a holiday retainer & offered all TTO parents (mostly schoolies) the option of condensing hours into 1 long day a week in the holidays so they can stay on the lower year round rate. This has really worked well as I have 4 schoolies TTO and needed more holiday work and 2 are now coming 1 day a week in the holidays which is an extra 17 hours a week 😄

[Simona]

Your contract should clearly state that 'fees are reviewed each year'...you can state the month you would do that review.
Some cms may do so in September, others in April as the new financial years start.

If you do not increase your fees that is fine but if you do then the parents have been informed in advance in your contract which they have also signed in agreement.
If you decide to review your fees and increase them you must give the parents advance notice of when the increase will take place
That is absolutely acceptable and makes business sense.