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Childcare providers confused over charging for additional services

 

Recently many childcare providers have been confused over the whether they can charge for additional services and what these additional services are. A Guidance (model agreement ) has been released to help clear up this confusion. Stated in the model agreement;

The provider can charge for meals and snacks as part of a free entitlement place and they can also charge for consumables such as nappies or sun cream and for services such as trips and yoga. These charges must be voluntary for the parent. Where parents are unable or unwilling to pay for meals and consumables, providers who choose to offer the free entitlements are responsible for setting their own policy on how to respond, with options including waiving or reducing the cost of meals and snacks or allowing parents to supply their own meals.

As we all know funding doesn’t cover the cost of providing “free” childcare, and this is where providers can charge for additional services. 

Additional services are being classed as 

  • Meals
  • Trips
  • Suncream
  • Nappies
  • Additional extracurricular activities 

Providers must make this charge optional. With the choice being “optional” where again does it leave providers as many parents will opt out of paying this charge?. Having a clear message to parents is essential, preventing issues arising. The video “Champagne Lemonade Funding” is a great video to share with parents to help them understand the bigger picture

The funding providers receive from Government is to cover the cost of offering the free childcare and not consumables or extra services. The model agreements explain that nurseries can charge for meals, however, for a parent who opts out of paying this charge the department for education have said that providers must be flexible and offer parents the choice of bringing in a packed lunch or even wavering the cost or reducing the costs. For many nurseries, the idea of bringing in packed lunches raises concerns over the safety of children with allergies.
As the additional charges are voluntary, this is not going to help nurseries become sustainable. With the hourly rates being confirmed many nurseries are opting out of offering the 30hrs free childcare places, leading to a shortage of places. 
With the 30hrs free childcare scheme being introduced shortly what changes are you making to your fee structure/ session times to ensure sustainability?
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