Parents no longer required to pay extra fees for free childcare, government confirms

What does the new guidance say?

The Department for Education (DfE) has clarified that nurseries and childcare providers must not make additional charges a condition for parents accessing their free hours.

While providers can request voluntary contributions for things like snacks, nappies, and sun cream, these costs should be clearly outlined and remain optional.

Local councils are now expected to intervene if a provider is found making these charges mandatory. Additionally, nurseries must publish all fees and provide itemised invoices so parents can clearly see what they are paying for.

Education Secretary Bridget Phillipson emphasised the importance of this change, stating:

Giving every child the best start in life is my top priority. Today marks an important step towards an early years system that is accessible for parents, sustainable for providers, and better serves children’s development.

Why has this become an issue?

The government’s free childcare scheme, which was expanded last year, allows working parents to claim:

• 15 hours per week of funded childcare for children aged nine months and older.
• 30 hours per week for three- and four-year-olds.

From September, all eligible families will be able to access 30 hours per week, a significant expansion of the scheme. However, many parents have reported being asked to pay additional fees, with some nurseries charging for meals, snacks, or other “consumables” as a condition of attendance.

These extra costs have made childcare financially challenging for some families, leading to calls for greater transparency.

The funding problem behind the fees

While the new guidance protects parents, some in the childcare sector argue that the real issue is underfunding.

Neil Leitch, CEO of the Early Years Alliance, welcomed the clarity but warned:

Years of underfunding have made it impossible for the vast majority of settings to keep their doors open without relying on some form of additional fees or charges.

A recent survey by the National Day Nurseries Association (NDNA) found that:

• Staffing costs are set to rise by 15% in April.
• Nurseries expect to raise fees by an average of 10% due to increasing costs.

Purnima Tanuku, chief executive of the NDNA, cautioned that taking away flexibility around charges could “seriously threaten sustainability” for many childcare providers.

How will this affect parents?

For parents, this guidance offers welcome reassurance that free childcare means just that—free. However, with childcare providers facing financial strain, there is concern that they may compensate by increasing fees for non-funded hours or reducing services.

The government has announced a £75 million expansion grant to help nurseries and childminders prepare for the full rollout of funded childcare. It remains to be seen whether this will be enough to ensure providers can continue operating without relying on additional charges.

Read more:

• Childcare costs in the UK: how they compare globally and what help is available
• Thousands of families risk missing out on £2,000 childcare savings as December 31 deadline looms
• Waterstones Children’s Book Prize 2025 shortlist revealed