A couple have been left £850 out of pocket after securing a nursery for their then unborn son in 2021 but had to cancel when plans changed.
Parents spend an average of £71 to get their child on a nursery waiting list as they compete for places in the most sought-after places, according to new research.
The fees often also take the form of non-refundable registration fees. Other fees, such as acceptance fees, may also apply. In many cases the costs can be much higher.
Self-employed Kate Chisnall, 34, lives in Somerset with her husband, 35, and their son, who is two years old.
Kate Chisnall, who runs the company Happy Birth Coach, paid the childcare costs in advance
In total, the couple spent £850 to secure a place for their son at a private nursery in Somerset. The acceptance fee was a hefty £750 and was only refundable if certain criteria were met.
Kate, who runs the Happy Birth Coach company, started looking for daycare centers for her unborn son with her husband in September 2021.
The couple found a suitable private nursery in Somerset and paid a non-refundable registration fee of £100 in October 2021.
Additionally, in December 2021, after their application was accepted, the couple paid an acceptance fee of £750.
Kate has no problem paying the £100 non-refundable registration fee, but finds the £750 acceptance fee high, especially as plans for her son’s education changed.
Kate told This is Money: ‘As the nursery is part of a private school, the £750 will be refunded if our son stays there until year three.
“However, this is not our plan and we have chosen a public school for him to attend when the time comes. This means that the €750 we paid will not be refunded.
‘I think the compensation is unfair, because it is not clear what this is paid for.
‘However, we were aware of the acceptance fee before we got to the nursery, so it wasn’t a surprise. We liked the nursery best for many reasons, so we came to accept it.
She added: ‘I think the entry fee is reasonable, but the acceptance fee is on the high side and I don’t know of any other nurseries that charge both fees.’
She added: ‘A single fee for all locations would make it more accessible for everyone to access childcare across the geographical area.’
This is Money has seen the terms and conditions which clearly outline the costs, but many parents feel pressured to pay to avoid missing out on a place.
It is now believed that 70 per cent of nurseries in Britain ask parents to pay a non-refundable deposit before their child has started, Direct Line data showed this week.
With a third of nurseries imposing a non-refundable waiting list fee, the average fees imposed range from £5 to £199, according to the findings.
Childcare and parenting organizations have criticized the practice as putting further financial pressure on parents already dealing with rising costs of living.
Parents of two or more children could spend a three-figure sum just to put their children on a waiting list for a daycare spot that may not exist.
In London, the average non-refundable upfront fee is £103, with 89 percent of nurseries in the capital charging such fees.
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