Parent not able to pay

[alex__17]

After some advice, I have siblings age 2 and 4 for one day a week.

Mum broke her ankle a couple of weeks ago but still sending kids to me. She's been unreliable since day 1 with paying, I ask for fees in advance, usually monthly, dropped to weekly to help her out and I have to send reminders every week and she eventually pays the night before when I say I can't have kids until I have fees. She gets tax credits to help pay fees but not sure how that all works.

Anyway today she's texted saying she'll be off work until at least June, not getting paid, and doesn't know what to do with regards paying me next month.

What do I say? I can't afford to not be paid, but then again if she's not got the money what can she do? Would she still get tax credits if she's off sick? I don't want to work for free as these kids are really hard work and disruptive.

Has anyone been in this position? I don't know what to suggest, she's contracted to pay, but sounds like she doesn't want to. I haven't responded yet, thought I'd see if anyone has any ideas first! I'm off for 2 weeks in May anyway which I'll remind her of... If anyone knows if she'll get tax credits still I guess I could offer to do a shorter day depending on what the tax credits cover?

[clareelizabeth1]

From what you say it sounds like your being taken for a ride. If I were you I would get rid of them and look for better clients. The chances are she will still get tax credits and get full pay from work too as she will prob not tell tax credits that she can't work.

Also wanted to say well done for saying you would refuse care if she didn't pay.

[alex__17]

Well this is what I was thinking, she said last month she couldn't pay monthly because she gets paid weekly, so I said ok weekly is fine but still needs to be in advance, she works in a prison so unless she's temp staff she'll surely get sick pay?! And like you say she'll be getting tax credits still...
It just annoys me as I turned someone else away, she's wanting me to say don't worry I'll take them but I can't afford to not be paid, I still have mortgage to pay too like she still has rent to pay...

[QualityCare]

Tax credits for childcare costs don't stop unless mum tells them she no longer needs them so she is spending them on herself if she is not paying you, they are paid monthly and depending on her income will cover most of her childcare, l would ask her how much tax credit for childcare she gets and work out how many hours care you will provide and tell her that you will have to inform the inland revenue that the children are no longer with you if she doesn't bring them as if you take on another child who is claiming they will know you are minding over your numbers and you will get into trouble (they don't of course , but parent won't know this) l have said this before when a child left after renewing her credits.

[AliceK]

She will still be getting tax credits I would bet. I would probably tell her Don't worry I'll call tax credits and find out if they will still pay. (I know you can't). That should put the wind up her. Either that or write her a letter of termination based on her message to you that she is unable to pay for her childcare . I can't be bothered with parents who mess me about with money. I can't afford it and don't need the stress of it. She sounds more trouble than she's worth.

xxx

[Ripeberry]

Very simple. Refuse to have the kids. She is not working. You are not putting her out in anyway. She thought she had you hook line and sinker. You are not a fool. Hope you find someone else to replace them.

[alex__17]

Well I've just texted saying since I'm off 2 weeks of May she'd only need to find money for 2 weeks, would tax credits not cover it? She's responded saying no they won't pay a not technically workings...
Honestly I doubt she's informed them, I dont really know what she expects me to say?!
I like the idea of saying I'll try and contact them on her behalf, maybe I'll say that, at the end of the day I'm not working for free, I sympathise but what if her ankle doesn't heal and she can't go back in June? I can't keep hanging on until then with no pay :-(

[Ripeberry]

Never work for free! It's not worth it and honestly why does she need to send them to you? Does she not understand that you are a business? I wonder if she'll try that trick at Tesco? 'Err sorry, can't pay you, but I still want my shopping!' That's theft! Why should we be any different?

[kellib]

I'd say that's a shame, I'll take this as immediate notice (no point in saying 4 weeks if she won't pay!) and tell her she can see if you have space when she does go back to work, which of course you won't have

[Kiddleywinks]

Tax credits definitely pay weekly, don't think they do monthly as any changes have to be reported immediately (not that they always are ) and any increase/decrease is made on the next payment

Parents (should) pay their childcare provider 100% of fees due, if parent is entitled to claim, they get reimbursed by the government, upto 70% of their childcare costs depending on their earnings.

Tax credits are not your concern, it's the parents. If TC's don't pay parents, or they are no longer eligible for TC's, parent still has to pay you!

I would call mum's bluff, explain that it will probably be best all round for the contract to be terminated, as you cannot hold a space that's not being paid for.
That you will inform TC's your contract has been terminated, and so should she, as she will have to pay any overpayments back (HMRC state that changes of a value of more than £10 to childcare costs they must be informed)

So she either continues to send and pay for space or terminate.

Edited to add
If you think someone is claiming using your reg number and shouldn't be, you can contact the National Fraud Benefit Hotline on : 0800 854440

[tess1981]

Not your problem if tax credits don't pay she is continuing to send them to you she needs to make sure she has the money. Firstly I would say all fees need to be up to date and then give her notice you are not a charity you are a business

[tess1981]

Tax credits definitely pay weekly, don't think they do monthly as any changes have to be reported immediately (not that they always are ) and any increase/decrease is made on the next payment

Parents (should) pay their childcare provider 100% of fees due, if parent is entitled to claim, they get reimbursed by the government, upto 70% of their childcare costs depending on their earnings.

Tax credits are not your concern, it's the parents. If TC's don't pay parents, or they are no longer eligible for TC's, parent still has to pay you!

I would call mum's bluff, explain that it will probably be best all round for the contract to be terminated, as you cannot hold a space that's not being paid for.
That you will inform TC's your contract has been terminated, and so should she, as she will have to pay any overpayments back (HMRC state that changes of a value of more than £10 to childcare costs they must be informed)

So she either continues to send and pay for space or terminate.

I get my tax credits weekly so they definitely do

[Mouse]

I would cut your losses now.

Work out how much mum owes you and terminate the contract. Give 4 weeks notice if that's what's in your contract, but tell her it's strictly money up front - no money by the day you specify, no childcare. Or give her the option of paying the balance she owes now & leaving immediately.

Then get advertising the space straight away

[alex__17]

Thanks, the more I think about it the more I'm thinking I'll give her the option of either continuing to pay or terminating the contract immediately. She's paid and owes me nothing, shes paid for tomorrow, I do have 4 weeks notice period on my contact but I can't see she's going to pay it, and I'd rather terminate, get rid quick and fill the space ASAP.
I might say under the circumstances to help her out I'll waive the 4 weeks full pay notice, as I cant afford to potentially hold the space open with no payment, and if when she returns back to work I still have a space I'll have them back, but to be honest most likely wont because they're such hard work!
I'm still feeling guilty though about it, even though I'm the one losing a big chunk of money! Wish she was like all my other lovely parents where I don't have this hassle!

[Mouse]

Thanks, the more I think about it the more I'm thinking I'll give her the option of either continuing to pay or terminating the contract immediately. She's paid and owes me nothing, shes paid for tomorrow, I do have 4 weeks notice period on my contact but I can't see she's going to pay it, and I'd rather terminate, get rid quick and fill the space ASAP.
I might say under the circumstances to help her out I'll waive the 4 weeks full pay notice, as I cant afford to potentially hold the space open with no payment, and if when she returns back to work I still have a space I'll have them back, but to be honest most likely wont because they're such hard work!
I'm still feeling guilty though about it, even though I'm the one losing a big chunk of money! Wish she was like all my other lovely parents where I don't have this hassle!

That's when you need to put your business head on & ignore your heart!

I think that's a good plan. Give her the option of immediate notice, maybe even a pay & go arrangement until you fill the space (if you want to), with the option of her contacting you when she's back at work to see if you've still got the space available...though sadly it will probably have gone by then

[alex__17]

That's exactly what I've done, just messaged her saying under the circumstances as a goodwill gesture I'll terminate the contract immediately and waive my usual 4 week full fee notice period, and if when she returns to work I still have space I'll happily take them, but that i hope she understands i cant afford to hold a space or work wirhout being paid. It's a weight off to be honest, although I'm now dreading she will 'find' the money from somewhere and I'll have to still take them! I hope she goes for it and I can advertise the space, drafting official letter to give her tomorrow to end contract if she says yes to it, fingers crossed

[tigwig]

Good for you! Don't listen to any further excuses she tells you. Tax credits are defo paid weekly and you do get them if you're off sick. One of my parents was off for weeks and tax credits actually phoned me to confirm information and I told them mum was off sick but the child was still attending. She still continued to get paid them.
This woman is clearly taking you for a ride (or trying to lol). If it were me I wouldn't give the option of them coming back but would terminate permanently! Something else will come up

[Snowwhite]

Haven't tax credits changed to something called Universal something or other!? Emerged with other things and payment is now monthly only. Correct me if i am wrong. I may have just got confused!

[alex__17]

A quick google and hmrc website says not only will she get stat sick pay, she'll also continue to get full tax credits for up to 28 weeks and would do so for 4 weeks even if she left the job!
Think she was trying it on...hope she agrees to terminate contract, not had a response, guess I'll have to give 4 weeks notice if she suddenly decides she'll pay me, would make life much easier if she just said fine lets end

[Kiddleywinks]

Well done, hope you get the desired outcome, but, if not, make sure payment is made BEFORE care starts, that way you are at least being paid for doing your job.