Price increase and Tax Free Childcare
Red Wellies review our prices and the value that our parents receive from us on a regular basis, we also have to be aware of the costs that our business incurs both from investing in the business and from the external costs to retain a high quality workforce and maintain our building.
Since our last price review in April 2017:
The minimum wage and living wage have both increased twice. All of our staff are paid above these levels, but any increase means that we need to “push” all the pay rates upwards to retain the team. Many of our younger staff have become qualified at Level 3 and have proceeded up the age bands, we have also implemented a more generous pay policy with all childcare and administration staff. All of these factors mean that, since April 2017 the average hourly cost of our staff has increased by 9.2%.
We have invested substantially in the fabric of the building and will continue to do so at a high level. Over the summer we will be installing a new door control system which will improve security and reduce waiting times at the front door. We have also set a generous budget for 18/19 for the resources the children use.
Our business rates and rent have both been increased meaning we are now paying 19% more for the building than we were in April 2017.
But we are not moaning! Red Wellies is a successful business and the majority of these costs were expected and planned for. We do, however need to increase our prices from September 2018.
There is some good news though. The government has rolled out their Tax Free Childcare scheme to all those who apply. Until recently this was an “invitation only” service that was being rolled out to parents of babies, now anyone with a child under 12 can apply. Any money you pay in to your childcare account is then “topped up” by 20% from HMRC. Both parents living together have to be earning more than £126 per week and less than £100,000 per year. You cannot use Tax Free Childcare at the same time as using Childcare Vouchers, however if you stop your childcare vouchers (via your employer), the following month you would be eligible for Tax Free Childcare.
Tax Free Childcare means that you can pay up to £10,000 in childcare bills per child with £2,000 of that bill coming from HMRC! In most cases, this is more generous than Childcare Vouchers where most eligible working parents received between £623 - £923 each of help from HMRC. You can apply for a Childcare Account at:
Tax Free Childcare is a far easier scheme for us to administer compared to Childcare Vouchers. We currently have over 16 different childcare vouchers providers, all with different approaches and processes AND most still take a long time to get your money to us. Moving to Tax Free Childcare will really reduce administration time meaning we can concentrate on improving our offer.
For this reason our price increase will take into account whether you pay via Tax Free Childcare. If you are not eligible to join the scheme then please arrange a meeting with Richard and we can discuss your options in more detail.
Please note that the prices below are for existing bookings only. Children who registered with us after April 1st 2018 pay a different set of prices which can be viewed on our website.