Minimum wage increase

[FSFRebecca]

No doubt that you will have noted in the Chancellor's recent Budget that the Minimum Wage levels are to go up from April 2019. I'm interested to know what effect this will have on your provision. Is anyone going to have to increase rates of pay 'across the board'? 

Year	25 and over	21 to 24	18 to 20	Under 18	Apprentice
April 2018 (current rate)	£7.83	£7.38	£5.90	£4.20	£3.70
April 2019	£8.21	£7.70	£6.15	£4.35	£3.90

[NickyR]

We have already forecast an increase for all staff across the board.....last year our staffing costs increased by £8000.  The only solution for us is to increase our fees again, which is so unfair for paying customers.  I worry about the future because there is only so much a parent can pay for childcare. :-(

[Tinytowners]

we have been expecting minimum wage to rise even furthur then this by 2020, so this years is no surpise. took it into consideration when hiring our current team aready. Fees will need to rise again in the near future, but there is no way around it unfortunatly.

[zigzag]

We will have to raise wages for all otherwise it’s unfair.

[C1403]

Yes we'll have to raise across the board and will make sure to have our budget allow this increase.

Last year we had to increase wages twice (you may recall a post of mine). Staff got their usual increase in September, then we had to increase again in April following min wage rise. We have now said increases will only take place in April.

[Stargrower]

We pay living wage to unqualified staff, 10% above this for level 2, 20% level 3, 30% deputies etc etc.

I stuck to this  for the 2018 increase but don't think I can afford it for the 2019 one.  This is unfair to qualified staff, but it will come to the point where our setting, and therefore their jobs are at risk if the increases continue at this rate.  I think the aim is to have the living wage at £10 and we just couldn't pay the percentage increases that would come with this.

[MarshaD]

Same here.  Last April I increased wages for existing staff. Those who started in the September did not get a pay rise. However this year  it’s looks like I will have to increase wages for everybody.  I am putting prices up in January for fee paying families but that is to counterbalance other outgoing increases. So back to square one!

[C1403]

I think we may have to consider increasing fees too. We seem to have a lot more two year olds now (who aren't funded).

We haven't increased fees for over two years though. It's a shame, I've done some research and we are actually one of the cheapest around.

[zigzag]

We increased our fees by 50p per morning at the last meeting.  Someone wanted to increase them more but I think people then would just wait until they were funded.  We take from 2.5 years and only charge £10 per three hour session.

[C1403]

On 23/11/2018 at 16:07, zigzag said:

We increased our fees by 50p per morning at the last meeting.  Someone wanted to increase them more but I think people then would just wait until they were funded.  We take from 2.5 years and only charge £10 per three hour session.

We're less than that at the moment. I was going to suggest 30-40p.

Good point about waiting until funding comes through.

[Mouseketeer]

On 23/11/2018 at 16:07, zigzag said:

We increased our fees by 50p per morning at the last meeting.  Someone wanted to increase them more but I think people then would just wait until they were funded.  We take from 2.5 years and only charge £10 per three hour session.

Wow zigzag that is a good price, especially if a 3hr session, we are at £5.50 an hour until half term following their 3rd birthday, then £4.50 for unfunded.

[zigzag]

People just would not be able to afford anymore where we live and would then delay starting until funding kicked in.  At least keeping the price this low they can still afford a couple of sessions a week to get them settled before 15 hours starts.

[louby loo]

40 minutes ago, zigzag said:

People just would not be able to afford anymore where we live and would then delay starting until funding kicked in.  At least keeping the price this low they can still afford a couple of sessions a week to get them settled before 15 hours starts.

It's a difficult one I agree, but if I remember correctly (I've not fully read the small print in our latest contacts) you cannot allow the funded children to subsidise the unfunded.

I know you're  fully supported by your community so this may not effect you- and really offering low rates actually means you are giving back to the community that support you in return - with in itself is such a nice ethos for you setting.

We are a not for profit group, and we get very very little support from our community  - we could not afford to charge lower than our funded rate.

[Mouseketeer]

Rock and a hard place comes to mind zigzag :-( I do understand the ‘speculate to accumulate’ theory, pretty tough on you when you see what’s left after under 3 staff costs for 3hrs, our problem is they are happy to pay for them to start at 2yrs but so many don’t want to take up their full funding entitlement (with us or anyone), we currently allow funding to be used all day but the 15hrs gets 2.5days and they don’t want to come back midday or pay for the 3rd afternoon themselves (not many on 30hrs), am wondering if making 5hrs a day funded and a payable lunch break in the middle would help sort that.... but then that could back fire :-( 

Out of interest do counties only get the money from government that we claim from them or do they say we have a child in our county entitled to 15/30hrs and get the lot?

[louby loo]

4 minutes ago, Mouseketeer said:

 

Out of interest do counties only get the money from government that we claim from them or do they say we have a child in our county entitled to 15/30hrs and get the lot?

Think I'd rather not give that one too much though - as I recon I could guess the answer 

We currently do two long days (6.25) and three short (3).

Thinking of changing though, we have a  very small fee for the lunch club - however we have quite a few parents that don't even want to pay that, so that for the last year I haven't actually bothered with it- as the parents taking up the extra session outweighs the small profit from the lunch club!  We don't really have many with EYPP, but when we do this usually spent on 'extra hours' for the child.

 

 

[Mouseketeer]

Thanks Louby, maybe the ‘loss leader’ so to speak is worth some serious thought, i’d only need to charge £1 an hour to pretty much cover the 2 staff needed :-) 

[finleysmaid]

so for the last year we have decided to become LESS flexible rather than more! for each funded hour I am loosing money but I CANNOT afford to keep sessions empty . SO I have said 5 sessions minimum mornings or afternoons or 5 full days with a paid lunch club for funded children . Most parents (after an initial moan!) and an explanation of why we are doing it have accepted. It has been much more beneficial to the children/ they have settled quicker/they are learning faster! and the finances have continued to be sustainable in a very uncertain climate. It's a good deal for parents ...they get 32.5 hours for £30 a week !

The tricky bit about the wage increase is the increase in associated costs like the cost in pensions to the business ….we're still managing to stick to around 70% wage costs at the moment but this balance will go up the spout next year when the pensions rise again

[zigzag]

9 hours ago, louby loo said:

It's a difficult one I agree, but if I remember correctly (I've not fully read the small print in our latest contacts) you cannot allow the funded children to subsidise the unfunded.

🤣🤣The funded children do not even cover costs for themselves, let alone subsidising the unfunded  children🤣

[MarshaD]

Yes Zigzag you are good value. We currently charge £5 per hour (Greater London). Lunch club is £2. A preschool up the road is charging £5.50 per hour and £5 for lunch club (packed lunch at that). So from January I am going to £16.50 per session also and £2.50 lunch club. Hot meals are extra.