Childcare Providers asking for payment

Hi, I just wonder where I stand with this. My 20 month old attends nursery once a week, he is not funded. The childcare provider has asked all parents to pay 45% of their monthly bill every month that the nursery is closed as a non refundable retainer fee (around £86 pm for us). If you don't want to pay this, the nursery will terminate the contract and your child will lose their place. Whilst I am happy to pay a retainer that will be refunded once the nursery receives payment from the government, I can't help but feel that childcare providers are taking advantage. I have spoken to my local councillor who has said they will receive a mortgage/rent holiday as well as no business rates and the funded payments. They are not paying staff and have also said that key workers who send their children in are paying full fees, my councillor feels they are taking advantage too. I am told this isn't just my nursery, quite a few are doing it, but how can we take this further? I can't be the only person who feels like I am paying for a service I am not able to receive and cannot afford to pay before because my own income has been affected. I want to tell nursery no, but they really have got me over a barrel because my son really likes it there.

Comments

  • unforeseen
    unforeseen Posts: 7,376 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Check the various threads. It is normal for nurseries to stipulate that a retainer fee needs to be paid to keep your slot. Think yourself lucky, some expect 100%.
    What additional help the nursery may get is nothing to do with you. 

    This isn't something triggered by Covid but has been standard for years
  • Mrsn
    Mrsn Posts: 1,430 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Lots and lots of threads on this. As unforeseen has said some settings are asking for 100% of monthly fees. They will have to pay staff upfront until they get the money back from the government, some bills like insurances and utilities will still need to be paid even if others have been frozen.

    They will also at this point have other bills that are due to be paid and haven’t yet based on normal monthly income and expenditure. My sister who is a childminder will not get any help until June (and still has to wait for HMRC to get the ball rolling)... that is a massive amount of time to wait for any funds coming in.

    I must sound unsympathetic and I’m really not because when people’s incomes are dropped suddenly you will look at outgoing costs to cut but the nursery will have a clause in their contract and they are giving you the option to leave the contract if you wish.
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