Nursery Overcharging

claire.louise2

My childs nursery closes for one week at Christmas, which they do not charge for (all other booked sessions and bank holidays are charged for). The one week saving is spread over the entire year (i.e. 51 weeks divided by 12), which means you pay the same amount every month. However, they have now decided to change their payment structure. From 2014 you only pay for sessions booked (i.e. the amount will vary each month dependent on the number of days in the month, whether they are open etc).

Therefore, because my child started part way through last year I have in effect overpaid by £125. The nusery is refusing to refund this money. Can they do this? Any advice on this matter would be much appreciated.

Kayalana99

I don't really understand, but from what I can gather you are saying they owe you £125 based on their new payment structure which wouldn't start till 2014?

So your trying to back date it when it wasn't in place?

cllola

claire.louise2 wrote: »

My childs nursery closes for one week at Christmas, which they do not charge for (all other booked sessions and bank holidays are charged for). The one week saving is spread over the entire year (i.e. 51 weeks divided by 12), which means you pay the same amount every month. However, they have now decided to change their payment structure. From 2014 you only pay for sessions booked (i.e. the amount will vary each month dependent on the number of days in the month, whether they are open etc).

Therefore, because my child started part way through last year I have in effect overpaid by £125. The nusery is refusing to refund this money. Can they do this? Any advice on this matter would be much appreciated.

Hi

I dont really have a useful answer to your question but i didnt want to read and run. My gut instinct would say absolutely not, they can't refuse to refund you, however i dont know the legalities of it.

Did they give a reason for not refunding?

Can you go higher up in the management structure?

Are there any loopholes in the contract that state they can do this?

I hope someone can offer you some more useful advice and good luck!

Kayalana99

claire.louise2 wrote: »

My childs nursery closes for one week at Christmas, which they do not charge for (all other booked sessions and bank holidays are charged for). The one week saving is spread over the entire year (i.e. 51 weeks divided by 12), which means you pay the same amount every month. However, they have now decided to change their payment structure. From 2014 you only pay for sessions booked (i.e. the amount will vary each month dependent on the number of days in the month, whether they are open etc).

Therefore, because my child started part way through last year I have in effect overpaid by £125. The nusery is refusing to refund this money. Can they do this? Any advice on this matter would be much appreciated.

Ok I think I've got it but I don't see how your over paying....

So you started part way through the year but still been charged the same as other parents....so you've had a discounted rate based on the fact christmas week is shut.

So instead of paying lets say £100..you've been paying £90.

You don't pay christmas week because that's still part of 2013?

Then a new payment structure starts.

Where have you over paid?

LannieDuck

claire.louise2 wrote: »

My childs nursery closes for one week at Christmas, which they do not charge for (all other booked sessions and bank holidays are charged for). The one week saving is spread over the entire year (i.e. 51 weeks divided by 12), which means you pay the same amount every month. However, they have now decided to change their payment structure. From 2014 you only pay for sessions booked (i.e. the amount will vary each month dependent on the number of days in the month, whether they are open etc).

Therefore, because my child started part way through last year I have in effect overpaid by £125. The nusery is refusing to refund this money. Can they do this? Any advice on this matter would be much appreciated.

You're actually saying that they charge a certain amount per week and don't give a discount at xmas. Their explanation for this is that the 'free' xmas week is built into their pricing structure as a discount throughout the rest of the year?

I'm afraid I don't think you can claim money back, since you're paying for x number of weeks that you've attended, and the 'discount' is no more than an explanation for how they come up with a figure for their weekly rate.

lostinrates

I have a small business for which I charge a 'PCM' rate. My clients are never interested in this and ask what it is a week. I explain what this translates to a week, and that its calculated over weeks per year and divided by twelve. I don't charge less if my service is only required in February, and I don't charge more if my service is only required for subsequent longer months. Why? Well partly because I want long term clients not short term ones, and my service is excellent value over a year and partly because the paper work costs for me to keep tabs on it would cost them more than any saving they made.

I give services 'free' in Christmas week and in inclement weather.......these too, are effectively built into my price structure or just given as a client perk. At some point in the future this will probably have to change the chances are I won't know till say, six or three months before the policy change. That's part of why I give these services free as a perk and they are not contracted in as part of the paid for service now. I know existing clients will still find it hard to swallow change, we all do, but pricing structures do have to change as businesses develop, grow and need investment or start to make profit differently sometimes.

sarahevie

op this is something I have often wondered as we pay our before and after school fees in this way.

It is calculated daily rate £20 X number of weeks 34 / 10 months (we pay them Sept to June.

So I pay £64 a month. However, I have always wondered what would have happened if we had taken our child out half way through the year.

My daughter didn't start until 16th Sept so in Sept we only used £40 worth of childcare but paid £64, for example.

So if we had decided at the end of Sept that it wasn't working for us would we have been due the £24 refund? I don't know. However, I can see why the OP is annoyed.

I'm keeping a tally of what we have paid versus what we have used, and currently we are ahead (it will even itself out again next term.) If we take her out now will be owe the money for the sessions we have used but haven't paid for? Again, I don't know.

Adrenalina

I would dig out the contract you signed with the nursery and see what it says.
We pay our nursery the same way, on the first of each month and two weeks over Christmas they are shut. If I took my DD out now, I would not expect a refund. It's partly because of the way our contract runs, but it's partly my personal moral stance on it. The nursery needs to be able to plan ahead with staff numbers, meals etc. they have commitments too. If I change my mind, irrespective of whether it's on first July or 15th December, I need to give notice and pay for it.

TBH I think nurseries are miracle workers when it comes to money. Yes, the cost to me is horrendous. But when you work it out, they provide ten hours per day of entertainment, education, development support and nurturing, breakfast, hot lunch and two substantial snacks for five pounds an hour. I reckon that's pretty good going.

*edit to say I know the change wasn't your decision, so perhaps there is a compromise to be made? Maybe a clause in your contract can be interpreted in your favour, e.g. Substantial change to charging structure is effectively like giving notice and negotiating a new contract?

fluffnutter

OP, have you paid 12 months' worth up front?

claire.louise2

I haven't paid 12 months up front. My child started at the end of September when payment was divided equally over the year, so come next September I would have paid for a years nuersery the same as every other parent. However, because they have decided to change the payment structure. I have had to pay more because my child has only attended nursery for three months.

liney

I still don't see why you think you are due a refund.

The new system starts after Christmas week, so the amount you paid towards Christmas week still stands, and you will have only paid 1/3 towards it anyway as you didn't start until September.

Unless you are saying you are now having to pay for Christmas week 2013, in addition to the money you have paid extra over the last 3 months?