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Making Pre-schools Financially Viable


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Who is responsible for paying staff their holiday pay?

Who pays sick pay?

How can we survive when charging £4.50 per session??

Can anyone help with this irritating problem so that we can get on with the important issues such as planning, observing, assessing, supporting parents/carers & children, to name just a few...?!

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Welcome to the Forum!

 

I think the sentence "how can we survive when charging £4.50 a session??" might be the answser to your dilemma.

 

We don't pay sick pay - some members of staff are eligible for statutory sick pay, but otherwise if they don't work they don't get paid. However we do pay 4.8 weeks' holiday pay - although I know its going up again some time in the future.

 

Of course, if your figure of £4.50 per session is based on what the Govt funding is for a 2.5 hour session in your LEA then I really don't have any answers for you I'm afraid. Wiser heads than mine would be needed for that one!

 

Maz

Edited by HappyMaz
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Hi,

Are you ran by a committe, if so they should pay your sick and holiday pay.

in the pre school where i will be starting in September we charge £8.30 for the 2.5 hour sessions in line with the NEG but we are looking to extend our hours. We are also suffering as we have a low number of children in per day and are looking for ways to get more children into the setting but like you i would also like to get on with the important issues such as planning, observing, assessing and supporting parents/carers & children

 

Zoe

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welcome to the forum.

We pay staff holiday pay but we don't pay sick pay....

we charge £6 per session...... Are you committee run?

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Just had a look at the DSCF - National survey, (another post)

 

Average Fees (nationally) £3 PER HOUR

 

average wages £7 - £9 per hour.

 

Peggy

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committee pay this and it comes from fees , hence the need to actually cost this correctly.. if parents want good quality care they need to expect to pay for it..

 

Fees at 4.50 will probably not cover all the costs these days..we charge same as NEG and that only just covers our costs. (if taking under 3s than it would be higher costs) ..may be this area needs rethinking.

 

we only pay SSP if eligable, for sickness and holiday pay ( which goes up next October )

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We will charge £9.60 for a 3 hour session from September for non-funded children (our aim is to bring it inline with the NEG eventually) and £1.60 for the extra half an hour for funded children. Minimum wage goes up in October, the amount of holiday pay we receive goes up in April, 2009 (think its from 4.8 weeks to 5.6 weeks but could be wrong). The setting pays holiday pay.

 

Only those staff who pay NI/Tax would get sick pay, and then they would have to have had so many days off first, check the inland revenue site to be sure or is it HM Customs.. sorry brain on holiday.

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Only those staff who pay NI/Tax would get sick pay, and then they would have to have had so many days off first, check the inland revenue site to be sure or is it HM Customs.. sorry brain on holiday.

Here's the link to the frequently asked questions re Statutory Sick Pay - HM Revenue and Customs' website

 

Maz

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Inge, I thought holiday pay went up in April 2009!? Ahhh!!

 

yes my error, was just thinking about how our holiday year runs from September to August how to implement the changes for part of a year!

 

Inge

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wow you guys are amazing...I've never worked in a field where people are sooo passionate!!! I am very gratful for your responses.

 

To put you in the picture, I don't charge £4.50 but £10.00 per session. A year ago, the Pre-School I led had a good Ofsted. However, it highlighted the fact that we could not move on due to the multi-usage of our premises. We worked for the church and were committee run. I put it to the church that we should look at whether or not the Pre-School was still part of our vision. The decision to close was not taken lightly. Pre-School had been a service to the community for over 30 years. But close it did & it was the right decision. I thiought I'd get myself a nice little job with twice the pay & no responsibilities but the parents & staff thought differently!! To cut a very long story short we opened a new setting, serving the same community at the end of January this year. It has been a fabulous venture & continues to be so but the financial cost is huge. Since then we have bought for a very small sum, another setting in our area which was closing down. Furthermore, 2 more settings have closed this summer. It will take us years & years to break even. My comment about the £4.50 sessions was because there are still so many sessions charging unrealistic amounts. This seems to me to be shortsighted especially as tax credits can pay up to 80% of the childcare costs. Sorry I'm on my soap box. Gotta go now but thanks for listening x

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Best wishes with your new venture, :o you may be able to get sstainability grant from your local Authority EY's dept, may be worth a try to reduce the number of years working towards break even point.

 

Peggy

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Our setting pays holiday pay and we also get an additional 5 days sick pay per year. We are extremely lucky to have a supportive committee at the moment but as we all know that could change dramatically next year!

 

By the way we charge £7 per 2 1/2 hour session but are looking to put these up.

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