A fresh investigation into hidden nursery fees has been initiated by the Education Secretary following complaints from parents who claim they are being forced to pay extra charges to access government-funded free childcare hours.
Expansion of Free Childcare and Concerns
The number of children eligible for up to 30 hours of free childcare per week has increased, yet some parents report being hit with compulsory fees to access this support. Childcare providers are permitted to charge for extras such as meals, nappies, or optional activities, but these charges must not be mandatory or a condition of securing a funded place. Local councils have the authority to take action against providers violating these rules.
Impact on Families
Nearly three-quarters (72%) of parents say they are dipping into savings to cover additional charges, while over a quarter (27%) cite cost as the main barrier to accessing childcare. Bridget Phillipson has now written to the independent Competition and Markets Authority (CMA), requesting a formal investigation into the issue.
New Cost of Living Tool
The government has also launched a cost of living tool designed to help parents find local childcare. Initially trialed in Bristol, South Gloucestershire, and Bath and North East Somerset, the tool is set to roll out nationwide later this year.
Ms Phillipson stated: "I grew up in a family that knew what it meant to count every penny. I am so proud of the crucial difference that 30 hours funded childcare makes to family finances, saving £8,000 a year per child on average. The vast majority of nurseries and childminders have been brilliant in helping us deliver, but I will not accept the small minority letting families down and stopping them get what they were promised."
30 Hours Free Childcare Explained
Since September 2025, all eligible families with children aged nine months to four years can access 30 hours of free childcare per week. For children aged nine months to two years, parents must earn at least the national minimum wage for 16 hours a week on average, but less than £100,000 annually, to qualify. All parents of three- and four-year-olds are entitled to 15 hours free childcare per week regardless of employment status. Working parents with children in this age group can claim the full 30 hours if they meet earnings criteria. The Department for Education estimates that over 500,000 families now benefit from funded hours.
