This matters just as much whether you have one or many settings. Increasingly over the past 12 months I have had conversations with other providers about the levels of debt they have or the security of money owed to them.
Cash flow is extremely important to businesses that are working with very low margins. Inevitably the greatest cost is staff wages, and it is vital that all of the staff are paid on time, as they have regular bills and commitments.
Many providers and parents have expressed concern over the security of childcare voucher payments, as there are now so many voucher providers. We ran our own childcare voucher service for many years and were very aware of the importance of ring-fencing the voucher funds and not using the money to support general trading. The good providers are careful to identify voucher funds separately until they are paid to carers. We redeem thousands of childcare vouchers every month and have had little issue with the better voucher providers.
It is pleasing to note that all the main political parties seem to recognise the benefit that childcare vouchers provide for working parents.
Some parents are having a difficult time paying nursery fees in the current economic climate, and this is worrying lots of providers. Our suggestion is to be vigilant with the collection of fees, but also talk to parents early if they are suffering real hardship. Tax credits are important to an increasing number of parents, and although there is dissatisfaction with the workings of the system, I hope that any replacement system will be well thought out and sympathetic to parents' needs.
The vast majority of nursery managers entered the profession to work with children and probably never imagined that they would be involved in collecting fees. However, it is an inescapably important task that is the basis of providing long-term financial stability to all childcare settings.
