Education Secretary Requests Review of Hidden Childcare Charges by Watchdog

1-Minute Brief

The review aims to address concerns that families still face extra childcare costs despite government-funded hours.

Key Facts

• Education Secretary Bridget Phillipson has asked the Competition and Markets Authority (CMA) to review hidden childcare charges.
• The review will examine practices such as non-refundable deposits and compulsory add-ons in nurseries.
• Concerns have been raised that parents face extra charges even with expanded funded childcare hours.
• The government’s flagship childcare policy is intended to provide free hours for families.
• Phillipson has formally written to the CMA to initiate this review.

What Happened

Bridget Phillipson, the education secretary, has requested that the Competition and Markets Authority investigate hidden charges in childcare, including non-refundable deposits and compulsory add-ons.

Why It Matters

The outcome of the review could affect the affordability and accessibility of childcare for families, potentially influencing how nurseries structure their fees and the effectiveness of government-funded childcare policies.

What's Next

The CMA is expected to consider the education secretary’s request and determine the scope and process of the review. Further details may be released as the review progresses.