Nursery got new owners

sarahevie1

My daughter's nursery got new owners in November, they bought the business and kept the staff under a TUPE agreement. They have since changed the name of the nursery to their business name, signage etc.

I haven't signed a new contract, the only contract I have signed was August 2014. They sent me a letter today informing me of price changes from 1st February, they are proposing a fee increase of £12 a day, can they do this?

They have had to keep the staffs' pay and conditions the same under the TUPE agreement is that not the same for customers?

I do feel quite emotional about the whole thing, its not just the price increase, I didn't want them to buy the nursery, I didn't choose them to look after my child, there was no notice just one Monday the new owners appeared and that was it, now we have to just get on with their new systems, prices increases when we weren't informed prior to the sale and had no choice.

elsien

Of course they can put prices up, in exactly the same way that the previoUs owners could have done if they wished - prices are not going to stay the same year on year, whether it's sold or not.
Utilities go up, as does the minimum wage, insurance etc.

Yes it's a big increase but presuming a months notice they have given you sufficient time to go elsewhere if you wish before the increase kicks in. Your child is still being looked after by the same familiar staff - maybe you can shop around to see what other nurseries charge and what they can offer before deciding whether or not to move.

Nicki

Well if you haven't signed a new contract with them, when you drop your little one off on the way to work tomorrow, they are perfectly entitled to tell you that he hasn't got a place and you can't leave him.

Of course this is total rubbish, but it is exactly what you seem to think applies in reverse to benefit you. If you don't like the new owners, then find a nursery you do like, but until then you are bound by all the terms and conditions of the one your child is currently attending, and that will include occasional increases in rates. If these aren't acceptable to you, then you will have to move your child.

sarahevie1

I can appreciate a small increase in line with inflation etc but £12 a day is 33%!

In theory they have given me time to find alternative arrangements, but I would need to give notice by January 1st, so not ideal with nurseries generally being closed for a week over Christmas.

Savvy_Sue

sarahevie1 wrote: »

I do feel quite emotional about the whole thing, its not just the price increase, I didn't want them to buy the nursery, I didn't choose them to look after my child, there was no notice just one Monday the new owners appeared and that was it, now we have to just get on with their new systems, prices increases when we weren't informed prior to the sale and had no choice.

However much you think the nursery you choose is powered by devoted love and affection for your child, it is a business. The previous owners have sold the business, and the new owners are making it their own. Would you have preferred them to close the business without selling it? That's happened before now!

You have the same choice you always had: keep using this nursery or find an alternative. Whatever motivated you to choose this nursery, any number of things might have changed at any time: staff, routines, d!cor, timetable ...

but having said that, if something like this is making you very emotional, are you finding life in general quite hard to cope with? Or is it just this?

elsien

Maybe that's why the old owners sold up - not making enough profit. When was the last price increase?

A relative used to own a nursery. Fees were kept comparatively low because she lived on the premises, wanted to give quality childcare and was happy as long as she made enough for a reasonable standard of living.

When she retired and sold up, one lot of interested buyers were venture capitalists- only interested in the figures and profit margins. If she'd sold to them prices would probably have gone right up.
It's a business, and the motivations of those behind it can make a difference in the direction and the fees.

sarahevie1

Generally I'm fine, it's just how much the nursery has changed in a very short space of time and not knowing what to do.

I had reasoned that she would stay at the nursery, even though the changes bother me, because most of her nursery friends are the same, the staff are mostly the same due to the TUPE agreement and she starts school in September. She's August born so started nursery just after her 1st birthday and will start school about 5 days after her 4th birthday.

The fees changing has just swayed the balance and I'm now thinking I should just move her, 33% increase to me isn't reasonable.

Nursery does bother me as I work full time so she attends Monday-Friday 8-6, 50 hours a week, so it has to be right for her and I'm not pleased with some of the new systems. I'm not sure its worth moving her when she is due to start full time school in September.

Nicki

Are the new rates out of step with what others in the area are charging?

Here is a link to average rates for full time nursery if that helps you decide whether the suggested increase brings them out of line with the rest of the market

https://www.moneyadviceservice.org.uk/en/articles/childcare-costs

anmarj

What I will say sounds harsh, but in terms of the staff terms and tupe, that is not relevant to you.

newbie1980

where are you??

that would show wheither the new £48 a day is good or not as wages are different in london then newcastle for example

as others have said look round see what others charge. I pressume this is what the new owners have done and brought theres up to local prices

anmarj

sarahevie1 wrote: »

Nursery does bother me as I work full time so she attends Monday-Friday 8-6, 50 hours a week, so it has to be right for her and I'm not pleased with some of the new systems. I'm not sure its worth moving her when she is due to start full time school in September.

I think this is the real problem. My SIL moved her son from a nursery a term before he started as she was not happy with the nursery and he settled really well. Children are more adaptable than we think. I am sure if I had to move my son, he would settle pretty quickly.