Bad Debt

Procedures

We aim to ensure the financial stability of the pre-school by having a fair and consistent process for pursuing non-payment of fees. It is our intention to pursue any unpaid fees through the County Court for the recovery of monies owed to the Pre-school as a final stage of our procedures.

We aim to make our setting accessible to all sections of the community by having open, fair and clearly communicated procedures. In order to achieve this aim the pre-school will:

  1. At induction fully inform parent/carers of the fee and payment structure of the preschool in writing.

  2. Parents will be billed at the beginning of each half term. The invoice will give details of the sessions being paid for and the rate being charged; in addition the invoice will give details of any free funded hours that can be used or fees for additional hours.

  3. Invoices will be raised in a timely manner and will have all the information required to ensure prompt payment within 7 days from the date of the invoice.

  4. Parents/ Carers will be given a half terms’ notice about any fee increases

  5. Parents will be expected to give at least half-terms notice for any reduction/cancellation in places, or they may be liable for that half-terms’ fees

  6. Charge for sessions (excl. funded hours) when time is taken for family holidays, days out, and illness during term time. In the case of hospitalisation or prolonged absence special concessions may be made.

  7. We reserve the right to charge for any hours not paid by grant funding. This will be charged at our usual hourly rate, payable every half-term.

If the family has used our services without payment or their payment has been dishonoured, all debts will be recorded and non-payments will be followed up by issuing reminders at the following intervals: 

  1. After seven days a reminder email will be issued asking for payment. If payment is received within seven days then no further action will be taken.

  2. If payment is not received then a second reminder email will be issued, asking for immediate payment in full within seven days, plus a £10 administration fee. If payment is received within seven days then no further action will be taken.

    If at any time you are experiencing difficulty in settling your bill, then please do not hesitate to book an appointment to a discuss how we can help with the Supervisor.

  3. Failure to agree any action with the Supervisor will result in the child(ren) not being able to use any services or take any further session beyond the 15 free hours until payment is received in full. If payment is received in full within SEVEN days then no further action will be taken. 

  4. When pursuing the debts through the Small Claims Court the following costs will apply: A £50 administration fee and all court costs and £20 hourly rate if representation from the Pre-School is required.

 This policy is known, agreed and implemented by all staff.

 This policy is known and made available to parents.

 This policy was adopted at the committee meeting on 21st October 2020.