Education Secretary Bridget Phillipson has called for a review into so-called 'hidden' nursery fees after parents raised concerns about being charged to access free childcare hours. Eligible working parents across England are entitled to 30 hours of free childcare per week for children aged between nine months and four years old.
However, the Department for Education said that 'too many' parents report being asked to pay additional fees to secure a place. These extra costs include waiting list deposits, compulsory add-ons, or requirements for additional hours beyond their entitlement. Under current guidelines, childcare providers are permitted to charge parents extra for additions such as meals, snacks, nappies, or optional activities. However, these top-up fees must not be mandatory or made a condition of securing a funded place, and local councils have the power to take action against providers breaking the rules.
Financial Strain on Families
The financial strain is already taking a toll on households, with nearly three-quarters of parents (72%) admitting they are dipping into their savings to cover these extra charges. Furthermore, more than one in four (27%) say that overall cost remains the biggest single barrier to accessing childcare.
Ms Phillipson has written to the Competition and Markets Authority (CMA), asking it to investigate the issue further. The Government has also launched a new cost of living tool to help parents find childcare in their local area. It is currently being trialled in Bristol, South Gloucestershire and Bath and North East Somerset, with a wider rollout expected later this year.
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.”
30 Hours Free Childcare Explained
Since September 2025, all eligible working families with children aged between nine months and four years can access up to 30 hours of free childcare a week. For children aged nine months to two years, parents must earn at least the equivalent of 16 hours a week at the national minimum wage, on average, but less than £100,000 a year to qualify.
All parents of three and four-year-olds are entitled to 15 hours of free childcare per week, regardless of whether they are in work. Those who meet the earnings criteria can claim the full 30 hours.
The Department for Education estimates that more than 500,000 families are now benefiting from the funded hours scheme. The review aims to ensure families are not being unfairly charged and that the childcare support delivers the full financial help it promises.
