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Huge change to childcare rules that could save parents hundreds of pounds as government clamps down on unfair fees
We explain how the updated guidance will work
PARENTS are set to get new protections to prevent nurseries from charging extra fees for free childcare hours.
In an exclusive interview with The Sun, Secretary of State for Education Bridget Phillipson revealed that the government is "clamping down" on childcare providers to prevent them from charging compulsory fees for funded hours.
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Ms Phillipson confirmed that from April this year, the government will introduce fresh statutory guidance that will ban providers from charging mandatory fees for free hours and encourage local authorities to take action against providers which break the rules.
It is understood that this could include getting providers to pay compensation to affected parents.
Parents have previously told The Sun they have been asked to pay a compulsory daily “consumables charges" of up to £29 for free hours, as well as a £55 "non refundable registration fee".
And from January next year, all childcare providers will be required to publish a detailed breakdown of their charges and what they cover on their websites, as well as explaining that fees for funded hours are voluntary.
MORE ON NURSERY FEES
Ms Phillipson told The Sun: “What we’re setting out will save working parents money by clamping down on the unacceptable practices we have seen where mandatory fees are being charged and there is no clarity around what they cover.
“The guidance will give parents that clarity and will also mean nurseries can’t insist on any mandatory charges alongside government-backed hours, for example for consumables like nappies and lunches.
“We want it to be clear and consistent across the board, so providers will be required to follow our new statutory guidance, while local authorities will be empowered to take action [if they do not].”
What has been going on with nursery fees?
Over the past few years, nursery fees have risen exponentially in order to cover rising costs following a steep rise in inflation.
Most read in Money
The government provides funding to nurseries to allow them to offer free childcare hours, but nurseries have long argued that this funding doesn't cover the cost of free places as they are also grappling with rising costs.
“I know how important free childcare is for parents, and I want parents who access those places to have much greater clarity about what they are being asked to pay for
Bridget Phillipson
Government guidance currently states that while providers can charge fees for extras like consumables, they should not make these a condition of accessing a free childcare place.
And it adds that nurseries should not charge top-up fees, non-refundable registration fees or any other fees not clearly identified as being for consumables, for free childcare hours.
But last year, an investigation by The Sun revealed that parents were being hit with various new charges following the rollout of additional free childcare hours, including high compulsory consumables charges, admin fees and non-refundable registration fees.
After we raised this issue with the government, former Minister for Children David Johnston pledged that it would investigate and take action if it found evidence of overcharging.
Ms Phillipson said as part of those investigations, the government heard examples from parents “right across the country” who were being “expected to pay mandatory fees”, while it wasn’t always clear what they covered.
Now, in a major win for The Sun, the Labour government has confirmed it is strengthening its guidance to outline that all extra charges must be voluntary and that local authorities can step in if providers don’t adhere to the rules.
“I know how important free childcare is for parents, and I want parents who access those places to have much greater clarity about what they are being asked to pay for," Ms Phillipson said.
“Alongside the government investment we’re putting in [to funded childcare hours], we’ve acted swiftly to make sure that providers will follow this new guidance so parents are not being stung with high charges.”
How will the new guidance work?
Under the new statutory guidance, providers will have to be clear and transparent about any fees they charge and, from next year, publish a breakdown of exactly what they cover.
And for funded childcare hours, they will have to make it clear that the charges are voluntary.
Ms Phillipson explained: “Parents will not be required to pay any mandatory fees alongside government-backed hours, so they can provide their own nappies rather than it being a requirement that they pay.”
She added that the government will work with local authorities to ensure they are confident in enforcing the guidance and feel able to take action if they find any providers not adhering to it.
Last October, we revealed that one parent had won £677 back with the help of his local council after challenging compulsory extra fees from his nursery.
“I’m confident that with the new guidance enforced, providers will follow it, but if parents continue to find that there are problems in the system, absolutely local authorities will be empowered to take action,” Ms Phillipson said.
“We encourage parents to speak to local authorities about any instances [of unfair charges or lack of transparency] that they find.”
Alongside cracking down on overcharging, the government has announced further investment into free childcare hours, including an extra £75million grant to help fund the remaining roll-out.
It has also extended its Stronger Practice Hubs programme for another year to help improve the quality of childcare across the country.
READ MORE SUN STORIES
This program helps childcare providers to deliver high-quality education via 18 regional hubs.
Read more about free childcare hours and how to apply here.
How to complain about unfair fees for free hours
If you're unhappy with the fees your nursery or childminder is charging you, speak to them first.
Ask for a full breakdown of what any extra fees are paying for, and remind them of government guidance that they should provide this.
If they refuse to provide a breakdown or continue to make the fees compulsory, raise a formal complaint. The provider should have a complaints process it can share with you.
Keep any evidence such as emails detailing extra fees or refusals to provide a breakdown of the charges.
If you don't agree with the outcome of the complaint, you can speak to Citizens Advice for further assistance or legal advice.
You could then take it to your local authority and ask for help getting the charges refunded.
Read about how one parent got £677 refunded via his local council here.
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