Education Secretary orders review of hidden childcare costs

Bridget Phillipson has instructed the Competition and Markets Authority (CMA) to conduct a review into hidden costs associated with government-funded childcare places. The investigation will scrutinise whether early years providers are imposing unfair additional charges on top of the statutory free hours entitlement, potentially undermining the affordability of childcare for working families. The review comes as the Government expands its free childcare offer, with concerns mounting that some nurseries and childminders are requiring parents to pay for supplementary items such as meals, snacks, nappies, and extracurricular activities as a condition of accessing funded places. The CMA will examine market practices to determine whether these charges represent anti-competitive behaviour or unfair contractual terms that could breach consumer protection law. For local authorities, the findings will have significant implications for how early years provision is commissioned and monitored, particularly regarding transparency in funding agreements with providers. The review aims to ensure that government investment in early education translates into genuine financial relief for families rather than being offset by rising ancillary costs.