NURSERIES must stop making parents pay sneaky extra charges to use their “free” childcare hours, the Government has warned.
Ministers are cracking down on hidden fees which can cost families hundreds of pounds per year.
Children aged nine months to four years can get between 15 and 30 hours per week of Government-funded childcare during school term-time, often called “funded” or “free” hours.
Nurseries are not meant to force parents who use funded hours to pay extra charges on top, but parents have reported being hit with extra costs – including top-up fees, upfront registration fees and charges for things like books and craft materials.
Now new guidance issued by the Government is making clear exactly what nurseries can and cannot charge.
The update makes clear nurseries must not charge parents any “top-up” fees to make up the difference between their private rates and the funding they receive from the Government for funded hours.
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They also cannot force parents to buy extra paid-for hours, if they only want to use the free 15 or 30 hours. But if parents want more hours, they are allowed to charge for these at a private rate.
Parents using funded hours must not be charged non-refundable deposits or registration fees to secure a place for their child. Nurseries can charge deposits but these must be refunded, unless parents do not take up the space.
Nurseries are also banned from charging parents for essential learning items, like toys, books, craft supplies, crayons, paper and musical instruments.
They must also not pass on the costs of cleaning, staffing, rent, insurance or fuel bills to parents – or charge for any extra SEND support for children with additional needs during the funded hours.
‘I know how complicated childcare is for parents… they should not be pressured into paying extra’
Education Secretary Bridget Phillipson tells The Sun:
“A child’s early years shape so much of their future – but I know how complicated childcare can be for parents.
“When you’re juggling work, family life and household bills, you don’t always have the time to pore over every line of small print or question whether a charge is really optional or not.”
“Parents are saving up to £7,500 a year thanks to our 30 hours of funded childcare, and they should not have the value of these savings quietly chipped away at by small charges building up week after week.
“Every pound matters when money is tight. That’s why we are tightening up guidance and making it clearer what parents should and should not be charged for.
“Funded hours must be delivered without hidden costs, and parents should not feel pressured into paying extra.
“If parents notice a charge they weren’t expecting, they should feel comfortable asking their childcare provider to explain it clearly.
“If concerns remain, they can speak to their local authority, which oversees funded places and has powers to act if the rules are being broken.”
The Government is also cracking down on what it calls “vague” charges for things like “sustainability”, “enhanced ratios” or “enrichment”.
It said all extra charges must be clearly explained and itemised on invoices, so parents know exactly what they’re paying for.
The Sun previously revealed how parents were being stung by extra nursery fees to cover food and admin costs, at the same time free childcare hours was being expanded by the government.
Nurseries can charge for some optional extras – but only if parents can choose to opt out of these without losing their free place.
These include nappies, suncream, snacks and meals. Parents must have the option to supply their own nappies, creams or packed lunches and snacks.
Nurseries can also charge for other optional extras like trips, events and special classes like music or foreign language classes.
The Department for Education said the updated guidance would “stop quiet, recurring charges from chipping away at childcare savings” and make bills easier to understand.
It said parents who think they are being overcharged should ask their nursery to explain and itemise charges. If the issue is not resolved, parents can contact their local council, which has the power to investigate.