Non-refundable nursery ready record charges over £70

  • On common, mother and father pay a non-refundable £71 for a nursery ready record spot
  • Paid a hefty nursery ready record payment? Email jane.denton@mailonline.co.uk 

Seventy per cent of nurseries within the UK are asking mother and father to pay a non-refundable upfront payment earlier than their little one has began, information reveals. 

On common, mother and father spend a £71 to get their little one on a ready record for a nursery. The fees additionally usually take the type of non-refundable registration charges. 

With 34 per cent of nurseries imposing a non-refundable ready record payment, the typical charges imposed vary from £5 to £199, in response to Direct Line Life Insurance. 

Childcare and parenting organisations have criticised the follow for putting additional monetary stress on mother and father already coping with spiralling residing prices.

Upfront prices: Average non-refundable upfront nursery charges in UK cities

Parents of two or extra youngsters may very well be spending a three-figure sum simply to position their youngsters on a ready record for a nursery spot that will not exist. 

In London, common non-refundable upfront charges are £103, with 89 per cent of nurseries within the capital charging such charges, in response to the findings. 

In Leeds, common nursery ready record charges are £85, whereas in cities like Bristol, Exeter and Manchester the determine is nearer to £50. 

At £30, Belfast got here out as the town with the most affordable nursery ready record cost. 

With many nurseries oversubscribed, many mother and father discover themselves stumping up a number of non-refundable nursery ready record charges, regardless of there being no assure of a spot. 

Upfront prices an issue for years 

Alison Traboulsi had issues with one potential nursery for her daughter

Alison Traboulsi, 43, lives in Hayes, Kent, and works in advertising and marketing. Alison has an eight-year-old daughter and four-year-old son. She endured a aggravating time along with her daughter’s upfront nursery prices.

As a first-time mom eight years in the past, Alison needed to look spherical 15 totally different nurseries and had a torrid time making an attempt to get a spot for her daughter.

Alison and her fiancé paid a £50 upfront non-refundable payment to safe their daughter’s place on one nursery’s ready record. A yr glided by and there was nonetheless no spot for Alison’s daughter out there. Alison did not hear from the nursery and needed to get in contact with them to seek out out what was occurring. The payment wasn’t refunded.

Alison mentioned: ‘It would have been one factor if I used to be getting common updates from the nursery and subsequently might see what admin my fee lined, nevertheless it ended up being me chasing them! The price of nurseries is excessive as it’s, and these hidden charges simply aren’t one thing persons are made conscious of.’

She added: ‘It simply felt just like the nursery took the “waiting list” payment, despite the fact that they knew it may very well be years earlier than a spot grew to become out there.’

Alison needed to discover a totally different nursery for her daughter and pay a £200 upfront payment, which was finally refunded after the primary bill got here via. She’s since had a son and her daughter’s nursery had a spot for him. 

Hannah Donnison, product supervisor for Direct Line Life Insurance, mentioned: ‘It’s not stunning that some mother and father discover it unaffordable to cowl the upfront prices of nurseries earlier than even securing a spot, particularly in circumstances the place many may not have had revenue for a couple of months or it’s been lowered whereas on maternity or paternity depart. 

‘Individual nurseries are recognized to take totally different approaches, however a big proportion do cost extra charges so be sure that to search for these when doing all of your analysis.’

She added: ‘If you’re eligible, there’s assist out there for childcare via the Government’s tax free childcare scheme, in addition to in some situations childcare vouchers.

‘Currently, when your little one reaches three you possibly can declare for extra monetary assist and there’s additionally some extra assist for below twos relying in your circumstances.’

As effectively as ready record charges, mother and father additionally usually must fork out a refundable deposit to the nursery supplier in query. 

This can typically be the equal of a month’s value of nursery charges. Direct Line Life Insurance consultants mentioned the costliest areas might see mother and father shell out over £2,000 earlier than their little one has even secured a spot at nursery. 

The analysis was undertaken for Direct Line by FleishmanHillard between 16 October and 22 November final yr and lined 108 nurseries in cities up and down the UK. 

Of the nurseries surveyed, 20 per cent didn’t show their charges upfront on their web sites. The data needed to be requested by way of on-line types, on the cellphone or via a bodily go to to the nursery. 

‘Bank of Family’ saves younger mother and father £38bn a yr

Separate analysis from Legal and General and the Centre for Economics and Business Research this week suggests over 40 per cent of oldsters and grandparents over the age of 55 have helped youthful members of the family with childcare. 

‘The Bank of Family’ has, the findings recommend, provided childcare assist to members of the family which is the same as round £38billion per yr. 

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Parents and grandparents sometimes spend round 9 hours every week serving to to take care of youngsters or grandchildren, which is the equal of round £5,400 in childcare prices a yr, the analysis claims. 

Recent information from the Office for National Statistics revealed that in 50 per cent of working households within the UK, each mother and father are working full-time. 

Bernie Hickman, chief government of Legal and General Retail, mentioned: ‘People assume that the Bank of Family is nearly monetary assist.

‘But as our analysis reveals, folks depend upon their mother and father and typically wider household for a lot of issues – together with the reward of time. 

‘The current childcare reforms to assist households are a step in the appropriate route, however many individuals depend upon their mother and father to allow them to proceed to work.’ 

Free childcare scheme prolonged

Since 2 January 2024, working mother and father in England have been in a position to apply for 15 hours of funded childcare for his or her two-year-old little one.

The extension of the tax-free childcare scheme was first introduced within the Spring Budget of March 2023. 

From April this yr, working mother and father of two-year-olds will get 15 hours per week throughout time period time, with youngsters from 9 months included from September. The enlargement ought to have totally rolled out by September 2025.

Working mother and father of three to four-year-olds in England are eligible for 30 hours of free childcare every week throughout time period time. This is open to households the place the dad or mum or mother and father earn no less than £8,670 per yr, however lower than £100,000. 

Under the tax-free childcare scheme, you possibly can rise up to £500 each three months, or as much as £2,000 a yr, for every of your youngsters to assist with the prices of childcare. This goes as much as £1,000 each three months if a baby is disabled. Certain eligibility standards apply. 

Tax-free childcare can be utilized for ‘accepted childcare’, specifically nurseries, nannies and childminders or after-school golf equipment and play schemes. 

The childcare voucher scheme closed to new functions on 4 October 2018 and was changed with tax-free childcare.

Anyone who joined a childcare voucher scheme earlier than October 2018 and remains to be with the identical employer as after they joined the scheme can proceed to make use of the vouchers, as long as the employer nonetheless runs it.

Childcare vouchers generally is a good guess for greater fee taxpayers with childcare prices coming in at £9,400 or much less a yr. Tax-free childcare solely provides fundamental fee tax reduction on the price of childcare and oldsters must reconfirm their particulars each three months. There’s no revenue restrict for childcare vouchers, so a dad or mum incomes £100,000 or extra a yr may benefit.

Tax-free childcare generally is a good choice for self-employed mother and father and those that have greater childcare prices.