That's quite a long time with you effectively being paid fees for less than one child, but expecting to look after two.
If she is working, is she willing to take reduced pay from her employer?
Why should you then? You have to budget as well, and she is expecting you to tighten your belt not her.
I agree with your childminding association and Tutu - you are undervaluing yourself. I understand you are worried about losing income (albeit it a pittance) but this parent will not get those prices elsewhere.
What would she say if you explained that you cannot afford to take the drop in fees, but understand she may want to move elsewhere?
What happens if you agree to the drop, and she does not look around elsewhere ?(or cannot find someone as cheap as you), will she agree to pay the original fee once again? and will she then agree to your annual increase which may then only be six months away?
I hope it works out for you, as for you it may well be an emotive issue - you knowing the children and the parent/s, but you may be on a slippery slope, once you backtrack on your contract, policies and procedures.
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