Education Secretary to Request Review of Hidden Childcare Charges
Education Secretary Bridget Phillipson will ask the Competition and Markets Authority (CMA) to investigate hidden fees that parents may be charged by childcare providers.
The Conservative government initially introduced 30 hours of free childcare for most working parents of three and four-year-olds in England, covering 38 weeks annually. Labour later expanded eligibility to include parents of children as young as nine months old.
However, ministers have expressed concern that families continue to face additional costs when securing childcare places, particularly through demands for non-refundable deposits.
In some instances, parents who have secured nursery places are required to pay extra fees for meals, snacks, nappies, and suncream.
Officials worry these charges could create obstacles for financially stretched parents seeking necessary childcare and will therefore request the CMA—responsible for promoting competition and protecting consumers—to conduct an investigation, as first reported by the Financial Times.
Ministers are apprehensive that the provision of free childcare for many working parents is being undermined by these hidden costs.
Following disappointing results in recent local elections in England, the government aims to show it is taking concrete measures to address the cost of living.
Households are currently facing rising fuel prices and are preparing for increased energy and food bills, partly due to supply chain disruptions caused by the war in Iran.
As part of a series of government policy announcements to alleviate cost of living pressures, Chancellor Rachel Reeves revealed on Thursday that family ticket prices at various attractions—including theme parks, zoos, and museums—would be reduced during the summer holidays through a VAT cut.
The Chancellor also announced free bus travel for under-16s in England during August and reductions in import taxes on certain basic foods under the "Great British Summer Savings" campaign.
According to Department for Education (DfE) data, over 1.7 million parents in England currently utilize government-funded childcare hours.
The average weekly cost of full-time nursery care—defined as 50 hours per week—for a child under two in England is just under £149 in 2026.
This represents a 39% decrease from the previous year, based on the latest annual survey by the Coram Family and Childcare charity, which monitors childcare costs across England, Scotland, and Wales.
