As a childminder, your business sustainability depends on your rates reflecting the true cost of care. If you haven't reviewed your fees recently, you may be earning less than you realise.
Why increase your fees?
There are two primary drivers for a rate review:
Rising Operating Costs: From bread and milk to electricity and insurance, the "cost of doing business" has risen. If your fees remain static while inflation climbs, you are effectively taking a pay cut.
A Higher Standard of Service: You aren’t just a year older; you are a year more experienced. Whether you’ve completed new training, upgraded your outdoor space, or improved your curriculum, your pricing should reflect the premium quality of your setting.
5 steps to calculate your new rate
Follow this logical flow to find a "Goldilocks" price that is fair to you and sustainable for parents.
Audit your actual costs
Don’t guess- calculate. List every expense required to run your setting:
Variable Costs: Food/snacks, petrol (for outings), craft resources, and nappies.
Fixed Costs: Insurance, tiney fees, memberships, subscriptions, and utilities.
Maintenance: Wear and tear on furniture, toys/resources replacements, and cleaning supplies.
Compare costs to your current revenue
Look at your total expenses vs. your current hourly rate. After paying for food, resources, and the tiney fee, how much "profit" is left as your actual take-home pay? If that number is nearing the National Minimum Wage, an increase is likely overdue.
Benchmark locally
Research what other providers in your specific area are charging for 2026:
Local Childminders: Check community groups or childcare directories.
Day Nurseries: While their overheads are different, parents often compare your rates to theirs.
Wraparound Care: Look at school-run club costs for older children.
Decide on your increase structure
You have two main options for the increase:
The Flat Increase: Adding a set amount (e.g., £0.50 or £1.00) to your hourly rate.
The Percentage Increase: Raising fees by a set percentage (e.g., 5 - 8%) to keep pace with inflation.
Communicate the value, not just the price
When you inform parents, lead with the value you provide. Remind them of the milestones their child has reached, the safety of your setting, and your commitment to their development. Transparent communication, given with plenty of notice, is the key to a smooth transition.
Need a second pair of eyes?
If you’ve done the calculations but want to sense-check your new rates before hitting "send" to parents, reach out to the tiney support team. We’re here to help you build a profitable, sustainable business.
To help you calculate the numbers with confidence, here’s a structured Fee Review Calculator table. You can copy this into a notebook, a spreadsheet, or simply print and complete it manually. You can also search for the Fee Review Calculator on your tiney app in the resources section.
Other useful resources