Daniels Silverman canvassed its nursery clients on their concerns for 2011 and found 86% expect the year ahead to be financially tougher than 2010 due to increased tightening of household finances. It discovered that 82% of parents had expressed concerns about their financial situation and predicted a rise in payment arrears as a result.
Carole Hughes, managing director, Daniels Silverman, says: “Many nurseries are struggling with difficult trading conditions and increased overheads. To add to their concerns the reductions in working tax credits, announced in the Government’s Comprehensive Spending Review, will make childcare even more expensive for many families. Some of our clients fear parents may decide it is no longer cost effective to continue working and paying for childcare.”
“As financial conditions worsen maintaining a positive cashflow will become more challenging. We are helping nurseries to take a more systematic approach to fee collection to monitor cash flow more effectively. With solid cash management systems in place nurseries can help ensure outstanding childcare fees are paid in a timely manner so arrears don’t escalate out of control.”