The Jigsaw Group, which comprises 36 nurseries and 800 staff, has decided to remove the fees following market research which found that parents felt it was 'mercenary' and 'money-grabbing' to charge up to 200 for registering a child's name. The research was commissioned by Jigsaw's new chief executive Mike McKechnie, who said, 'We believe that by removing the registration fee we have addressed an issue that we know from our research was a major cause of concern for parents.'
Jigsaw's registration fees, which it said were levied to cover administration costs and were equivalent to one week's nursery fees, ranged from 285 in Wandsworth to 230 in Hammersmith and 168 in Coventry. But the research found that parents were unsure what the registration actually paid for.
Mike Thompson, managing director of Child Base, warned that scrapping registration fees could create new problems. He said, 'The problem with scrapping registration fees is that you will end up with a lot of applications from parents who want to get their child's name down as widely as possible, but without any financial commitment that they will take up the place.'
Mr Thompson suggested that parents were probably put off by the size of Jigsaw's registration fee, rather than the principle of paying it. 'I think I would hesitate if I was asked to pay 200, quite a hefty sum in itself, and then a month's nursery fees in advance.'
Mr Thompson said he believed Child Base's registration fee, raised last year from 25 to 50, was 'a reasonable commitment, which we have had no adverse comments about'. He added that parents were always notified if the waiting list was lengthy.
Ian Millar, a director at Child and Co, which also charges 50, said it was vital 'to optimise our capacity in order to keep our fees as low as possible'. Parents also pay a 150 deposit which they get back when a child begins nursery.
Kindercare Childcare Centres, based in Preston, Lancashire, charges a variable registration fee which is redeemable when a child starts at nursery. Director Sarah Carr said, 'If parents do not have a financial commitment then they can put down a child's name willy-nilly with several nurseries. This could put pressure on the financial viability of nurseries.'
She said it was also a useful way of preventing fraud following instances of parents seeking places at nurseries to claim the childcare tax credit element of working families tax credit. 'Once they have their form signed at a nursery, in some cases, they are never seen again,' Ms Carr said.
A spokeswoman for the National Day Nurseries Association said there was a case for registration fees, but their level depended on individual nurseries and their location.
