The Education Secretary has urged for a fresh examination of undisclosed nursery charges following complaints from parents who claim they are being levied fees to access government-funded hours.
Although the availability of 30 hours of free childcare per week has been broadened, some parents are alleging compulsory fees as a prerequisite for utilizing the assistance.
Childcare providers have the authority to impose additional charges for services such as meals, snacks, nappies, and optional activities, but these fees cannot be obligatory or a condition for securing a funded spot. Local councils have the power to take action against childcare providers violating these regulations.
A significant percentage of parents, 72%, are utilizing savings to cover these supplementary costs, with over a quarter, 27%, citing affordability as the primary obstacle to childcare access. In response, Bridget Phillipson has formally requested the independent Competition and Markets Authority (CMA) to conduct an investigation.
To aid parents in locating nearby childcare services, the government has introduced a new cost of living tool, initially trialing in Bristol, South Gloucestershire, and Bath and North East Somerset before a nationwide launch later this year.
Expressing her concerns, Ms. Phillipson emphasized the financial relief provided by 30 hours of funded childcare, saving an average of £8,000 per child annually. While acknowledging the majority of childcare providers for their support, she expressed zero tolerance for the minority hindering families from receiving their entitled benefits.
Since September 2025, families with children aged nine months to four years have been eligible for 30 hours of free childcare weekly. Specific income criteria apply for children aged nine months to two years, while all parents of three and four-year-olds are entitled to 15 hours of free childcare weekly.
Working parents meeting the earnings criteria can claim the full 30 hours for their children, with over 500,000 families estimated to be benefiting from funded hours as per the Department for Education (DfE).
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