Annual fees rise for childminders

Some childminders could be put out of business by a hike in their annual fees, according to the National Childminding Association.

The annual fee needed to register to look after children aged five to seven is due to go up from £15 to £103.

But campaigners claim the increase this year will damage childminders' finances and be the final straw for some.

A three-month consultation period by the government on pushing up the price ends next week.

The chief executive of the National Childminding Association, Liz Bayram, says the government should not be putting up fees to such a high rate.

"What we want is inflationary increases, and for the government to recognise that their argument that this is actually removing a subsidy, isn't the reality that most childminders will seen" she said.

"What they see is a fee increase of over 400% by 2010," she added.

Threat?

The registration price for the under fives is currently £20 but it is proposed to increase in stages to £100 by 2010.

Childminder Margaret Skeels told the Working Lunch programme that her business, and those of her childminding colleagues, will be under threat from the price hike.

"Once these fee increases come into effect, I know personally that it will not be worth working as a childminder because there won't be the income and there certainly won't be the money for these additional charges," she said.

The Department for Children, Schools and Families (DCSF) say that "the main focus of this is to provide the services that parents and children need and the new system will be fairer in achieving this."

The DCSF are planning to make money available to local authorities to give to childminders as support.

However, it is not clear whether these subsidies will be enough to offset higher registration fees.