Nursery deposits and registration fees

Before your child starts, a nursery may ask for two kinds of payment: a registration fee to go on the waiting list, and a deposit to secure a place. They can add up, especially if you register with several nurseries, so it is worth knowing what is normal and what to check.

Registration fees

A registration fee is a one-off charge to add your child to a nursery’s waiting list or to process your application.

• Amounts vary widely, from nothing to a significant sum.
• They are usually non-refundable, even if no place becomes available.
• Paying one rarely guarantees a place. Ask whether it gives you any priority, and how the waiting list is ordered (date of registration, siblings, staff children, start date).

If you register at several nurseries to be safe, add up the fees when you compare costs.

Deposits

A deposit secures a confirmed place for your start date. It is often equal to a few weeks’ or a month’s fees.

• Many nurseries return it at the end, usually by taking it off your final invoice, if you give the required notice.
• Some keep it if you withdraw before your child starts, or if you leave without full notice.
• For a funded place, government guidance says a non-refundable deposit or registration fee cannot be a condition of taking it. A refundable deposit is allowed.

What to check before you pay

• How much is the registration fee and the deposit, and when is each due?
• Is either refundable? In what circumstances, and how?
• What happens if the start date changes, either because you need to move it or because the nursery cannot offer the place on time?
• What notice must you give to leave, and is the deposit used to cover the last month?
• Does the deposit change if you reduce your days, or if your child moves onto funded hours only?

Ask for the terms in writing, and read the contract before paying. If anything is unclear, ask, and keep copies of what you sign and receipts for what you pay.

Planning the timing

Registration fees usually come when you join a waiting list, which in busy areas can be a year or more before your start date. Deposits usually come when a place is offered, often a few months ahead. Our when to apply planner puts both on a timeline with the funding deadlines.

Can Tax-Free Childcare pay them?

Tax-Free Childcare pays a signed-up nursery for childcare. Gov.uk does not say whether that includes a deposit, so ask the nursery whether it takes one from your childcare account. If you claim Universal Credit and are starting work or increasing your hours, help with up-front costs can cover deposits and retainers; ask your work coach.

If a nursery cannot offer the place

Sometimes a nursery cannot offer the place on the date it promised, for example because of staffing. Ask in advance what happens then: whether the deposit is returned in full, and how quickly.

Comparing the full cost

When you compare nurseries, look beyond the day rate: registration fees, deposits, extras and how funded hours are applied all change what you actually pay. Our childcare cost calculator gives a monthly figure you can compare, and our visit checklist includes the money questions to ask on each visit.