Policy
Education Secretary refers hidden childcare costs to competition watchdog
Published May 25, 2026
The Education Secretary has formally requested that the Competition and Markets Authority (CMA) review the persistent issue of additional charges faced by families accessing government-funded childcare provision. Despite the expansion of funded hours for working parents, many continue to encounter costs for "extras" that effectively reduce the value of the entitlements.
For local authorities, the referral raises important questions about how childcare markets operate within their areas and whether current funding rates truly cover the cost of delivery. The CMA review could lead to recommendations affecting provider contracts, local market management, and the transparency of pricing structures that councils communicate to parents.
The outcome may influence future early years funding settlements and the regulatory framework around early childhood education and care. Lead Members should watch this development closely, as any enforcement action or pricing rules emerging from the review could require adjustments to local sufficiency strategies and commissioning arrangements.
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