Opting out of Funding?

[twise]

A parent has approached me (as i am now accredited) to take their child for a nursery place. They had originally booked a place at a preschool/nursery but have received a letter stating that the school is no longer going to be opting out of funding and therefore will be charging parents full rate.

I'm not really offay with how nurseries/preschool work etc....i know they charge a lot more per hour than me... but is the only reason to opt out financial?

Tracy

[sarah707]

Some are opting out (according to Nursery World magazine) because it will not be financially viable for them to offer the funded sessions.

They get £xx from the govt per funded session and say that it costs the a lot more to run the place and pay staff etc.

If they opt out and charge for the places they can get a higher fee.

It's going to become more of a problem in the future I think as more nurseries decide they can't afford the drop, as the single funding formula is coming in and it will mean every single 4 year old place will be the same ££ from the government regardless of setting.

Hth

[jumpinjen]

Be aware that if you are accredited then you may well struggle with the same issue as the nurseries.... for example, if the funding is £3.20/hour from the government and you charge £3.75/hour normally, then you too will be out of pocket.... does the lady want you to have the child all day every day or just for the funded time only??

jenni

[francinejayne]

Some are opting out (according to Nursery World magazine) because it will not be financially viable for them to offer the funded sessions.

They get £xx from the govt per funded session and say that it costs the a lot more to run the place and pay staff etc.

If they opt out and charge for the places they can get a higher fee.

It's going to become more of a problem in the future I think as more nurseries decide they can't afford the drop, as the single funding formula is coming in and it will mean every single 4 year old place will be the same ££ from the government regardless of setting.

Hth

Sarah - are you acredited? If not, why not? If you don't mind me asking!

[Heaven Scent]

Sarah - are you acredited? If not, why not? If you don't mind me asking!

I cant answer for Sarah but as I am in the same LA as her my response to your question is a very short sharp HA!!

[sarah707]

Sarah - are you acredited? If not, why not? If you don't mind me asking!

Not for the want of trying...

Cheshire is a little err should we say slow at getting childminders on board when it comes to accreditation ...

A snail might be faster actually...

Or as Heaven Scent says... HA!

[Mouse]

I read that a lot of nurseries were considering opting out of funding when the entitlement increases from 12.5hrs to 15hrs a week.

The way I understand it is that nurseries offer a 3hr session. The government pays £3.50 per hour for the first 2.5hrs and the nurseries charge an enhanced fee for the other half hour to cover what they're losing out on by only getting £3.50 an hour when they would normally charge a lot more. Eg. if they normally charge £5 per hour, a 3hr session would be £15. Government pays £8.75 for 2.5hrs, so nursery charges parents £6.25 for that final half hour, making £15.

When the entitlement increases to 3hrs the nurseries will only get £3.50p/h for the 3 hours ie. £10.50 for 3hrs.

Many nurseries say they can only afford to offer the 2.5hr sessions by charging the parents for an additional half hour and will not be able to afford to lose that enhanced fee.

[twise]

if the funding is £3.20/hour from the government and you charge £3.75/hour normally, then you too will be out of pocket.... does the lady want you to have the child all day every day or just for the funded time only??

I charge 5.50 ph, the rate I will be getting as an accredited childminder offering a nursery place in my borough is £6.50. I would be having the child for 2 extra days a week if I was doing the nursery part.

tracy

[newandlearning]

hi.. I queried with my LA why when you phone a nursery they say they deduct the funding from the daily rate (for example £9 for funding and £30 for full day hence leaving parent to pay remaining £21) ... HOWEVER .. as a childminder you have to offer 2.5 hours free .. so I lose money as the hourly rate here is £3.72 and I charge £4.25 and then if the child is with me for another 2 hours I then charge my rate and can't recoup the loss of earnings unless I put my rates up for everyone.

I can totally understand why places don't want to do 15 hours per week .. to be honest I would make even more of a loss .. I am currently offering funding spaces but am not sure I would want to come Sept. unless I could make some money from other means.x

I hope that's not too confusing