Money Moral Dilemma: Should we keep paying childcare fees during the coronavirus outbreak?

MSE_Kelvin

This week's MoneySaver who wants advice asks...

My children were in after-school childcare that has now closed. We've been asked to keep paying fees if we can, so the staff - who do a great job - still get paid. We can afford to, but I'm aware the Government has announced measures to support businesses and potentially pay wages, and I have a feeling the nursery owners aren't badly off. Should we keep paying?

Unfortunately the MSE team can't always answer money moral dilemma questions as contributions are often emailed in or suggested in person. They are intended to be enjoyed as a point of debate and discussed at face value.

😲 If you haven’t already, join the forum to reply.

🙄 Got a Money Moral Dilemma of your own? Suggest an MMD.

Kim_kim

I think they should at least reduce fees to reflect the food and nappies you won’t use.
Plus the help the government will give them.  

princeleanor

Hi there I am a key worker,my childminder told me ,ifI sent my daughter to school she would not mind her afterwards.i am a single mom trying to get by in life by supporting me and my daughter,the childminder then texted me asking how much I get from tax credits,if she closes down pay her the money I get.did you ever hear anything like it.
Not only did she not want my daughter in the school but she wanted to close down and for me to pay for it.🤔

alexhassan

I think they need to give you a blow by blow run-through of their overheads. Staff are being bailed out. Rent and rates may be reduced. They shouldn't be bleeding too much. I certainly would wait until the bailout legislation is set in stone before committing. 

webweasel

We have just paid (by direct debit) for the forthcoming month but I hope a fair wack of that will be refunded. We won’t be paying the full amount next month. I don’t mind paying a small retainer but staff costs should be covered by the government’s furlough scheme and there shouldn’t be much else besides rent / mortgage and bills

zebedeum

They  half fees becuase  the gov  pay goes to the staff and doesn't help keep the nursery open. Govermnet says rent has to be paid even if it is paid late.  insurance and other bills still ahave to be paid. Its a long term problem  a lost intake of children and yet when they reopen all the staff they will need to be paid again.  

mharte

princeleanor said:

Hi there I am a key worker,my childminder told me ,ifI sent my daughter to school she would not mind her afterwards.i am a single mom trying to get by in life by supporting me and my daughter,the childminder then texted me asking how much I get from tax credits,if she closes down pay her the money I get.did you ever hear anything like it.
Not only did she not want my daughter in the school but she wanted to close down and for me to pay for it.🤔

Mine has done the very same and said that if I don't then she can not guarantee my son's placement will be available when needing to return. When I worked our my tax credits the element of childcare was roughly 30% of what I pay her.... yet she is asking for 70%. Initially the parents were given a letter confirming that in the case of closure due to COVID there would be no fees.
I too am a single mum and key worker with no support and finding the WFH and toddler a juggle but coping 
My concern though is will the HMRC not see this as an overclaim if my son is not in childcare? And if so then surely she has no further right to claim the 30% either? 
BTW I also mentioned to my childcare that she may also be able to claim on her insurance, which I believe she is going to 🤔

denmandaisy

It's not covered on insurance..  

denmandaisy

It's not covered on insurance..  

denmandaisy

I think nurserys are one of the harshest financial environments for parents. they cut you NO slack when your kid is I'll or in ANY circumstance. . If I were still in that position I would seriously be considering not paying but would need to weigh that up against if I wanted my child there post this mess. Overall, I think they would ask too much so would probably contribute a small retainer (comparatively) but not what they wanted /suggest ed (which I would be distrustful of.. )

Btw I am paying a retainer of 50% to my childminder whilst I am able and bring paid, but they have no automatic right to any thing I.e. tax credits OR insurance 

gilesfitzh

Please be sure to differentiate between Nurseries and Childminders.   My wife and I are Registered childminders.  We have been told to stop working.   We are a 'partnership' in the eyes of HMRC rather than a registered business so most of what the Chancellor has said doesn't apply to us.   Fortunately we are both pensioners and 2 x basic state pension means that we will manage though the loss of earnings, about £5k p.a. between us will be missed.   Other, younger, childminders however will likely have no income for the duration so please bear this in mind.  Thank-you.