Current rates

[Czegluk]

Hi All,

I have been reading every new and old posts in the last half year. I am in the process of becoming a childminder.
I would like to ask about current fees as I haven' t found information ANYWHERE about current night rates.
Also I am planning to do mainly after school care.
Can someone please help me out if I can possibly charge £25 for 3.5 or 4 hours after school care? The rates are for eyfs are £5.50-£6 full- time.
I'm in South Hertfordshire.
Thank you

[moggy]

Some more info might help...

Would that include a hot meal? or just a snack? or are those extra?
Would it be a session-price only? Even if parent only wanted 1 hour after school?

Also, what you can charge will depend a lot on your local competition, and I mean very local- like the next 5 nearest after-school minders. Can you beat them on your offer- great, healthy, home cooked meal? lots of crafts/outdoors/sports/big garden/baking activities... or whatever, something to make you worth a bit more? Can you pick-up from a school that has a shortage of CMers? Can you cover all school holidays and inset days? All these things you can charge a premium for.

£25 sounds fine, but if the CMer up the road does a great afterschool service for £20 and has places available then you might struggle. It really is a case of asking around in your town, make some phone calls.

[Czegluk]

Hi moggy,

Thank you for your answer.
Yes i will offer cooked dinner, having a big garden with trampouline, swing etc for older children. Craft materials also included. Most of the cm closes at 6.30ish, clubs at 6..
I would like to concentrate on older ones until my own kids are under 5.

Will ask around locally too.

[Simona]

Hi All,

I have been reading every new and old posts in the last half year. I am in the process of becoming a childminder.
I would like to ask about current fees as I haven' t found information ANYWHERE about current night rates.
Also I am planning to do mainly after school care.
Can someone please help me out if I can possibly charge £25 for 3.5 or 4 hours after school care? The rates are for eyfs are £5.50-£6 full- time.
I'm in South Hertfordshire.
Thank you

Not an easy task the one when you get to decide what to charge....probably the hardest....don't sell yourself short and value your service so the parents will want to buy it....look at others but do not compare yourself....try to do better.

Put your 'business hat' on...you have chosen to be a Cm with all that it entails but you are going to run a small business alongside caring for children
Cms will now find it difficult to claim Working Tax Credits due to DWP policies ...so aim to make a profit!...that is what you will be expected to do.

You do need to look at your competition...also listen to the childcare Minister who says you are a seller in the 'childcare market' now

You will have places the govt will want to buy from you when you offer funding but you will be offered a very low fee for those funded hours so look at your accounts and do a simple business plan...

Find out what your LA funds the 15 hours and make sure you calculate your fee at a gain...not a loss.
Future funding is not known at the moment....so don't set your fees in stone.

Last but not least...in your contract make sure you have stated very clearly that you 'review' fees once a year...you choose when... them give parents notice.
Don't ever leave your fees stagnating at the same level....childcare fees are going to go up and up soon due to govt's poor policies.

Good luck!

[Czegluk]

Not an easy task the one when you get to decide what to charge....probably the hardest....don't sell yourself short and value your service so the parents will want to buy it....look at others but do not compare yourself....try to do better.

Put your 'business hat' on...you have chosen to be a Cm with all that it entails but you are going to run a small business alongside caring for children
Cms will now find it difficult to claim Working Tax Credits due to DWP policies ...so aim to make a profit!...that is what you will be expected to do.

You do need to look at your competition...also listen to the childcare Minister who says you are a seller in the 'childcare market' now

You will have places the govt will want to buy from you when you offer funding but you will be offered a very low fee for those funded hours so look at your accounts and do a simple business plan...

Find out what your LA funds the 15 hours and make sure you calculate your fee at a gain...not a loss.
Future funding is not known at the moment....so don't set your fees in stone.

Last but not least...in your contract make sure you have stated very clearly that you 'review' fees once a year...you choose when... them give parents notice.
Don't ever leave your fees stagnating at the same level....childcare fees are going to go up and up soon due to govt's poor policies.

Good luck!

THANK YOU FOR YOUR ANSWER!

[Simona]

THANK YOU FOR YOUR ANSWER!

[Bluebell]

Not an easy task the one when you get to decide what to charge....probably the hardest....don't sell yourself short and value your service so the parents will want to buy it....look at others but do not compare yourself....try to do better.

Put your 'business hat' on...you have chosen to be a Cm with all that it entails but you are going to run a small business alongside caring for children
Cms will now find it difficult to claim Working Tax Credits due to DWP policies ...so aim to make a profit!...that is what you will be expected to do.

You do need to look at your competition...also listen to the childcare Minister who says you are a seller in the 'childcare market' now

You will have places the govt will want to buy from you when you offer funding but you will be offered a very low fee for those funded hours so look at your accounts and do a simple business plan...

Find out what your LA funds the 15 hours and make sure you calculate your fee at a gain...not a loss.
Future funding is not known at the moment....so don't set your fees in stone.

Last but not least...in your contract make sure you have stated very clearly that you 'review' fees once a year...you choose when... them give parents notice.
Don't ever leave your fees stagnating at the same level....childcare fees are going to go up and up soon due to govt's poor policies.

Good luck!

Great advice about putting your business hat on when considering fees - I was far too flexible last time and went in line with what others were charging, did a few hours here and there charging by the hour. One of the reasons I stopped was I hadn't been making the money - it was hard to up rates by a lot once i had customers and not fair to charge new customers more than what i was charging old ones. I am coming back to childminding 2 years later and will be charging a day rate which will mean I make the money needed to make it worth my while. Hopefully people will choose to use me - if I can't attract the business then I will have to reconsider but think it will be better that way round!

[Simona]

Great advice about putting your business hat on when considering fees - I was far too flexible last time and went in line with what others were charging, did a few hours here and there charging by the hour. One of the reasons I stopped was I hadn't been making the money - it was hard to up rates by a lot once i had customers and not fair to charge new customers more than what i was charging old ones. I am coming back to childminding 2 years later and will be charging a day rate which will mean I make the money needed to make it worth my while. Hopefully people will choose to use me - if I can't attract the business then I will have to reconsider but think it will be better that way round!

Good luck with your return to childminding ...good to see you back.
Just one word of caution...up to you to take it or leave....be careful about charging a daily rate.

With the 30 hours it may be wise...in my view...to charge an hourly rate.
I say this because the 30 hours will leave providers picking up what is left from others who have no spaces....we are not going to be allowed to charge for sessions anymore...see new guidance to LAs so again put your business hat on.

just my hunch at the moment...but I will know more after various meetings and listening to others' views

Keep updated and keep listening to what is going on

[mama2three]

I charge a daily rate and it works very well for me , I know others feel there are pitfalls ( mainly parents using full hours )
I have managed to accomodate funded children without problem ,I claim 15 hours for 2 of my fulltimers. 15 hours currently equating to one and a half days , the parents pay for 31/2 days.

[Simona]

I charge a daily rate and it works very well for me , I know others feel there are pitfalls ( mainly parents using full hours )
I have managed to accomodate funded children without problem ,I claim 15 hours for 2 of my fulltimers. 15 hours currently equating to one and a half days , the parents pay for 31/2 days.

At the moment it works very well for a lot of Cms...look closely at the 30 hours and its guidance and you may realise it will not be viable for that scheme...plenty of time to reflect and adjust to the new rules if you wish to remain sustainable .

[mama2three]

Thankyou simona , and yes I have thought about how I may accomodate the 30 hours funding in various ways and still charge daily/half daily rate or the majority of my mindees . It actually works out well and I have already approached the local school to partner. I remain vehemently against the discrimination of offering extra education to a section of the population based on parents working hours and the massive attainment gap this will create in small children. However , as you point out , I do need to remain sustainable and forward planning is needed.

[Simona]

Thankyou simona , and yes I have thought about how I may accomodate the 30 hours funding in various ways and still charge daily/half daily rate or the majority of my mindees . It actually works out well and I have already approached the local school to partner. I remain vehemently against the discrimination of offering extra education to a section of the population based on parents working hours and the massive attainment gap this will create in small children. However , as you point out , I do need to remain sustainable and forward planning is needed.

I think that many providers share your opposition to the new scheme...for the very reason you have stated and many more too numerous to list.
Personally I fear giving 30 hours to 3/4 year olds may leave no spaces for the really needy 2 year olds...but we just have to wait and see

One thing I would like clarified is this: if parents work 20 hours....they may very well request 30 because they are free ...all will become clearer as the scheme comes under scrutiny....I am unclear on that at the moment.

The other thing I was reminded today at our meeting is that the DfE has set funding for 3/4 year olds at £4.88...and £5.39 for 2 year olds.

They have also said there will be a consultation on the Single Funding Formula...so if the DfE pays providers those sums above in funding providers can match their fees to that.

The one thing that is very annoying is that we are giving 'funded places' in future not funded 'education places'...clear as mud.

[Bluebell]

Funded places at £4.88 is a lot higher than what it was before!! - this will be well above my hourly rate whereas before it was below £4 and below my hourly rate.
can you point me in the direction of the guidance to LEA's - will what the LEA's actually pay be at their discretion? I know LEA funding varied in the past?
I don't really understand the single funding fomula thing - surely that will make childcare more expensive for parents for those that charge less but providers that currently charge more will lose out? Sorry if I'm being a bit daft - I'm on my second glass of wine

[Simona]

Funded places at £4.88 is a lot higher than what it was before!! - this will be well above my hourly rate whereas before it was below £4 and below my hourly rate.
can you point me in the direction of the guidance to LEA's - will what the LEA's actually pay be at their discretion? I know LEA funding varied in the past?
I don't really understand the single funding fomula thing - surely that will make childcare more expensive for parents for those that charge less but providers that currently charge more will lose out? Sorry if I'm being a bit daft - I'm on my second glass of wine

Yes and No ...but it is a long story.. and it goes back to Truss and her announcement years ago.

Not sure which guidance you mean...this one?
This is the latest but remember some parts cannot be put into practice until after the current consultation because it is a Draft...it is more about the 30 hours than the actual funding but it will be useful.

https://consult.education.gov.uk/ear...E%20latest.pdf

The DfE announced the new rates of funding mentioned above after our last consultation...remember the one we had to work out our hourly fee?...the very one the DfE does not hold any records for because Deloitte did the survey?

Unfortunately we remain unclear if the LAs will pass on ALL the new funding to us...there will be lots of debates on this in future.
As the DfE will pass the new funding to the LAs...who will act as middleman again...there is bound to be 'creaming off' as there has been for years as LAs need to pay themselves to administer the funding...let's not go that way as this makes many people mad!!

In my area the 2 yo funding is £6.10...the 3/4 is £3.62...I leave you to work out the rest

I think only dim Nicky Morgan understands the Single Funding Formula...or she doesn't really ...that is why she will consult us on that too...she should really ask Gyimah who is an ex banker and works with her
It means the same rate for everyone...but I think it will not work in all honesty!

So the message is loud and clear for everyone...don't set your fees in stone and leave room to readjust and update your contract once we know a little more

[rickysmiths]

Hi All,

I have been reading every new and old posts in the last half year. I am in the process of becoming a childminder.
I would like to ask about current fees as I haven' t found information ANYWHERE about current night rates.
Also I am planning to do mainly after school care.
Can someone please help me out if I can possibly charge £25 for 3.5 or 4 hours after school care? The rates are for eyfs are £5.50-£6 full- time.
I'm in South Hertfordshire.
Thank you

I am in South East Herts 2mins from J18 on M25 Where are you? When I had after school children, last one last year I charged £20 after school and £15 before school.

I charge a bit more than your suggested hourly rate.

[rickysmiths]

Funded places at £4.88 is a lot higher than what it was before!! - this will be well above my hourly rate whereas before it was below £4 and below my hourly rate.
can you point me in the direction of the guidance to LEA's - will what the LEA's actually pay be at their discretion? I know LEA funding varied in the past?
I don't really understand the single funding fomula thing - surely that will make childcare more expensive for parents for those that charge less but providers that currently charge more will lose out? Sorry if I'm being a bit daft - I'm on my second glass of wine

If my LA offer only £4.88ph I and a great many others will no longer offer the Funded hours because it fall very short of the average hourly fees of £5.50 to £7ph in this area. With just 15 hours there is room to charge more for the 3/4 year olds but with 30 hours it won't work.

[BallyH]

Does the £4.88 include the 55p for pupil premium? If yes the hourly rate goes considerably lower. Oh dear.

[Simona]

Yes...£4.88 includes EYPP

https://www.gov.uk/government/upload...12.03.2015.pdf

[Czegluk]

I am in South East Herts 2mins from J18 on M25 Where are you? When I had after school children, last one last year I charged £20 after school and £15 before school.

I charge a bit more than your suggested hourly rate.

Hi,

Im 3 mins drive from South Mimms welcome break. A1, M25.

[Czegluk]

This is it!

I have 2 eyfs children of my own, meaning I can take only one child under 5..