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The Education Secretary, Bridget Phillipson, has announced plans to commission the Competition and Markets Authority (CMA) to investigate concealed additional charges applied by childcare providers. This move aims to address concerns about unexpected expenses parents might face despite existing government provisions.
Under previous policies, the Conservative government made 30 hours of free childcare available annually for 38 weeks to most working parents of three- and four-year-olds in England. Labour later expanded this support to include parents of children as young as nine months. However, despite these entitlements, there are ongoing worries that families must still pay extra fees, such as non-refundable deposits, to secure a place at nurseries.
In many cases, parents who manage to obtain nursery spots encounter further costs related to meals, snacks, nappies, and suncream, which are not covered by the free childcare offer. Officials fear these hidden charges could act as obstacles for financially stretched families seeking essential childcare. Accordingly, the CMA, which works to promote competition and safeguard consumers, will be asked to carry out a formal review of these practices.
The government’s concerns come amid broader efforts to alleviate the cost of living, especially following poor local election results in England. Alongside the childcare investigation, Chancellor Rachel Reeves recently unveiled various measures designed to reduce financial pressures on families during the summer holidays. These include VAT reductions on entrance fees to attractions like theme parks, zoos, and museums, free bus travel for under-16s across England in August, and the lowering of import taxes on certain staple foods as part of the “Great British Summer Savings” initiative. According to the Department for Education, over 1.7 million parents currently benefit from government-funded childcare in England. Meanwhile, the average weekly cost of full-time nursery care for children under two has decreased by 39% to just under £149, based on the latest figures from the Coram Family and Childcare charity
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