Education Secretary Bridget Phillipson has instructed the Competition and Markets Authority (CMA) to investigate hidden charges that parents face when trying to access government-funded childcare. Eligible working parents in England are entitled to 30 hours of free childcare per week for children aged nine months to four years. However, the Department for Education reports that "too many" families are being asked to pay additional fees to secure a place, including waiting list deposits, compulsory add-ons, or requirements for extra hours beyond their entitlement.
Survey Reveals Widespread Extra Costs
A survey conducted by Ipsos in May and June 2025, involving 2,000 parents of children aged zero to four, found that over a quarter cited cost as the "primary barrier" to accessing their preferred childcare. Nearly three-quarters of parents whose children attend formal childcare reported paying for extras such as meals, drinks, snacks, nappies, sun cream, and one-off activities like special outings.
Minister's Statement
Ms Phillipson said: "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."
In her letter to the CMA, the education secretary requested details about the impact of extra charges on both parents and providers. To simplify access, the government has launched a digital map of providers in Bristol, South Gloucestershire, Bath, and North East Somerset, which will be rolled out nationwide later this year. The tool is available via the Best Start in Life website.
CMA Response
A CMA spokesperson said: "We welcome the request from the education secretary to carry out a review into the early years childcare sector. The CMA has been monitoring developments and exploring the merits of work in this area. This is an important sector that needs to work well for families, and we will be developing a specific proposal to put to our board."
