Parents of nursery children in England are being charged additional fees to compensate for the government's underfunding of free childcare hours, with some paying thousands of pounds annually for consumables such as food, wipes, and nappies, campaigners have reported.
Government Underfunding Leads to Extra Charges
The comments came as Education Secretary Bridget Phillipson requested the Competition and Markets Authority (CMA) to investigate hidden extra charges that parents encounter when accessing government-funded childcare. Eligible working parents in England can receive 30 hours per week of free childcare for children aged nine months to four years.
However, the Department for Education (DfE) has stated that too many parents report being asked to pay more to secure a funded place, including waiting-list deposits, compulsory add-ons, and additional hours.
Survey Reveals Widespread Extra Payments
According to a survey conducted in May and June last year, nearly three-quarters of parents whose children attended formal childcare reported paying for extras, covering meals, drinks, snacks, nappies, sun cream, and one-off activities like special outings.
Neil Leitch, chief executive of the Early Years Alliance, an educational charity, described this as a cross-subsidy. Speaking on BBC Radio 4's Today programme, he highlighted the scale of the problem for childcare providers and the extent to which costs are passed on to parents.
One parent, Rick Kelsey, wrote in the Times last year that up to £16 per day—amounting to thousands of pounds annually for a full-time nursery child—was charged on top of standard fees. Kelsey remarked, "I would love to see a toddler eat £16-worth of chicken nuggets and Babybel cheese before pickup." Leitch acknowledged that this is not simply a lunch cost but a cross-subsidy.
Impact on Families and Government Response
The Ipsos poll last summer, surveying 2,000 parents of children up to four years old, found that more than a quarter considered the cost of childcare the primary barrier to accessing their preferred option.
Writing in the Guardian, Phillipson stated that too many parents are not feeling the full benefit of government-funded childcare hours. She emphasised that while most nurseries and childminders do a brilliant job, hard questions must be asked when families face hidden charges, restricted hours, or excessive deposits.
In her letter to the regulator, Phillipson requested details on the impact of extra charges on parents and providers. Additionally, the government has launched a digital map of providers in Bristol, South Gloucestershire, Bath, and North East Somerset, set to roll out nationwide later this year via the Best Start in Life website.
A CMA spokesperson welcomed the request, stating that the authority has been monitoring developments and will develop a specific proposal to put to its board.
