Non-payment of nursery fees has long been the bane of nursery owners' lives, but these tough economic times are spurring them to be increasingly firm with parents.
Parents struggling to pay nursery fees was cited by childcare providers as a major threat to sustainability in a recent survey done by The Consortium exclusively for Nursery World (News, 9 April), while Laing & Buisson's report Children's Nurseries 2009 found that there was a clear increase in nursery closures as businesses struggled to service debts (News, 23 April).
Nursery owners have turned to each other for advice on Nursery World forums ('Have your say', www.nurseryworld.co.uk) and the National Day Nurseries Association reports an increase in debt-related queries to its free legal helpline since late autumn, which it attributes to a number of factors, including the recession. 'Some parents are struggling financially, which has had an impact on their ability to pay childcare fees,' says NDNA chief executive Purnima Tanuku. 'In some cases, due to rising costs and a need to keep fee increases in check, nurseries are experiencing cash flow issues and therefore have had to look at collecting in all outstanding fees, especially from parents who may have been unresponsive to payment plans.'
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