Bridget Phillipson orders review of hidden childcare charges hitting parents

The education secretary has requested a competition review of hidden childcare charges affecting parents. The review will examine practices such as non-refundable deposits, compulsory add-ons, and restrictions tied to government-funded childcare places. Ministers report that many parents still face extra costs to secure nursery places, including upfront deposits, additional paid hours, and charges for essentials such as nappies, meals, and suncream. The intervention comes as the government seeks to ease household budget pressure amid ongoing global price impacts. A Great Summer Savings scheme provides free bus travel for children in August and removes tariffs on staples, alongside an extension of a fuel duty cut. The government claims funded childcare hours save eligible families an average of 8,000 per child per year, but polling shows many parents are using savings to cover additional childcare costs and affordability remains a major barrier.

"Bridget Phillipson, the education secretary, is ordering a competition review of hidden childcare charges amid concerns parents are being hit with extra charges, despite the government's flagship expansion of funded childcare hours. Phillipson has written to the Competition and Markets Authority (CMA) asking it to examine practices including non-refundable deposits, compulsory add-ons and restrictions attached to government-funded childcare places."

"Ministers said too many parents were still being asked to pay extra costs to secure places for their children in nurseries, including upfront deposits, additional paid hours and charges for basics including nappies, meals and suncream. Phillipson's intervention came as Keir Starmer's government looks for ways to ease pressure on household budgets amid the continuing impact of the Iran war on prices across the world, with ministers concerned if families are actually feeling the benefits of government support packages."

"On Thursday, the chancellor, Rachel Reeves, announced a Great Summer Savings scheme, with measures including free bus travel for children in August and the removal of tariffs on staples including biscuits, chocolates and dried fruits. The government also extended the temporary 5p cut to fuel duty. While the summer savings scheme is worth 300m, thinktanks including the Resolution Foundation suggested richer households would enjoy a larger share of the benefits of the government's interventions than poorer ones."

"The government said eligible families were now saving an average of 8,000 for each child a year through funded childcare hours, with more than 500,000 families benefitting from the scheme. But polling from Ipsos, commissioned by the Department for Education, revealed nearly three-quarters of parents were dipping into their savings to cover additional childcare costs. More than a quarter told the survey affordability remained the biggest barrier to accessing the childcare they needed."

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