Government acts against hidden childcare costs

Education secretary Bridget Phillipson has written to the competition regulator as part of Government action to tackle hidden childcare costs.

Bridget Phillipson (c) UK Parliament

Bridget Phillipson (c) UK Parliament

The letter to the Competition and Markets Authority (CMA) says too many parents are being asked to pay extra to secure a childcare place including upfront deposits, compulsory add-ons, or additional hours to access their entitlement. 

Phillipson said: ‘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.'

Nearly three quarters (72%) of parents say they are using savings to cover extra charges, while more than one in four (27%) say cost remains the biggest barrier to accessing the childcare they need. 

The Government has also asked the CMA to do more to investigate the role private equity and other ownership models are playing in the childcare market, including whether they are working in the interests of families or driving up costs and creating risks for those who depend on their local nursery. 

In addition, a free cost of living tool has been launched to help parents make the most of the childcare offer, from finding local provision to planning and getting exactly what they are entitled to. 

In a further measure, the newly launched GOV.UK Chat AI tool allows parents to get instant answers about what support they could have.

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