"How much should I charge?" is one of the first questions every new childminder asks, and the answer depends almost entirely on where you live. Hourly rates in central London and in a small northern town can be several pounds apart, and both can be right for their area.
A single number would be wrong for most people reading this, so here's how I'd work out yours.
Start with what's charged near you
Local rates matter more than any national average, because families compare you with the childminders and nurseries they can actually get to. Your council's Family Information Service often lists local providers, and some listings show fees. Childcare search sites and local Facebook groups show what nearby childminders advertise. Nurseries publish their day rates, which gives you a ceiling to compare against. And other childminders will often just tell you if you ask, because most of us remember being new.
Look at several, and note what each rate includes. A rate that covers meals, nappies and outings isn't the same as one that charges for each separately.
Check it covers your costs
A rate that matches the area still has to pay you. Add up a year of running costs: insurance, your Ofsted fee, training, resources, food if you provide it, extra heating, wear and tear on your home, and any membership or software. Then work out how many paid hours you'll realistically fill, allowing for your own holidays and the weeks families are away.
Divide your costs by those hours to get the minimum you need just to break even. Your hourly rate needs to sit comfortably above it, or you're paying to look after other people's children.
Hourly, sessional or daily
Most childminders charge by the hour, often with a minimum session such as three hours, because it's simple and fair. Some offer a day rate that works out slightly cheaper per hour, which rewards families who book full days and makes your week more predictable. Whichever you choose, write the rate and what it includes into your contract, and decide what you'll charge for extra time if a child stays later than booked.
Funded hours
If you offer funded places, part of your income comes from your local authority at their rate, and funded hours must be free to families. You can't charge a top-up to make up the difference. You can charge your own rate for private hours on top, and offer optional extras such as meals or trips, as long as families can opt out and every invoice shows funded and paid hours separately.
Check your local authority's funding rate before deciding how many funded places to offer, because it affects how many private hours you need to fill to make the week work.
Review it every year
A lot of childminders set a rate in their first year and never touch it again. Pick a month to review your fees each year, give families plenty of notice, and keep rises small and regular. That's far easier on everyone than a big jump after three years of rising costs.
Once you've settled on your rates, GoChildmind works out each child's weekly and monthly fees from them, including funded hours and closures, and writes the fees section of your contract. You can try it free.