Education secretary to order review of hidden childcare costs

The Education Secretary will ask the Competition and Markets Authority to examine hidden costs charged by childcare providers. Free childcare for working parents of three and four-year-olds for 38 weeks a year was introduced by the Conservative government, and eligibility was later extended to children as young as nine months old. Ministers are concerned families still face costs to secure nursery places, including non-refundable deposits. Some parents also face additional charges for meals, snacks, nappies, and suncream after obtaining a place. The government wants the CMA to investigate whether these costs create barriers for families needing childcare. The government is also announcing measures to ease cost of living pressures, including cheaper summer attraction tickets, free bus journeys for under-16s, and reduced import taxes on some basic foods.

"Getty Images Education Secretary Bridget Phillipson is to ask the Competition and Markets Authority (CMA) to examine the hidden costs parents may be charged by childcare providers. The Conservative government introduced 30 hours of free childcare for most working parents of three and four-year-olds in England for 38 weeks a year, and Labour extended eligibility to parents of children as young as nine months old. But ministers are concerned that families are still facing costs to secure places through demands for non-refundable deposits."

"In some cases parents who successfully secure a nursery place are expected to meet additional costs for meals, snacks, nappies and suncream. They are concerned this may create a barrier for hard-pressed parents to get the childcare they need and will ask the CMA - which is tasked with promoting competition and protecting consumers - to investigate, the Financial Times first reported. Ministers are concerned the offer of free childcare for many working parents is being undermined."

"After dismal results in local elections in England this month, the government is keen to demonstrate that it is taking practical steps to tackle the cost of living. Among a flurry of government policy announcements aimed at easing cost of living pressures, Chancellor Rachel Reeves announced on Thursday that ticket prices for families at various attractions such as theme parks, zoos and museums would be cheaper during the summer holidays through a cut to VAT. The chancellor also announced free bus journeys for under-16s in England in August and cuts to import taxes on some basic foods under a "Great British Summer Savings" campaign."

"More than 1.7 million parents in England now use government-funded childcare hours, according to Department for Education (DfE) figures. The average cost of full-time nursery - 50 hours a week - for a child under two in England is just under 149 per week in 2026. That is a 39% drop from last year, according to the lates"

Read at www.bbc.com