Bridget Phillipson to order review of hidden childcare costs

May 25, 2026 - 01:16

Bridget Phillipson, the Education Secretary, is set to instruct the competition watchdog to investigate the hidden fees and charges that families continue to face within the government's free childcare scheme. The review will target costs such as mandatory deposits, admin fees, and charges for meals or nappies that providers often add on top of the state-funded hours.

Parents have reported that these extra costs can make the "free" offer nearly unaffordable, with some families paying hundreds of pounds a month just to secure a place. The review aims to expose these practices and push for greater transparency, ensuring that the government's expansion of funded childcare actually delivers on its promise of reducing financial pressure on working families.

Phillipson has stressed that the system must work for parents, not just providers. She wants the Competition and Markets Authority to examine whether the current rules are being followed and if families are being unfairly charged. The move comes as the government rolls out 30 hours of free childcare for children from nine months old, a policy that has been plagued by reports of limited availability and hidden costs. Critics argue that without proper oversight, the scheme risks becoming a subsidy for providers rather than a genuine support for parents.

The review is expected to report back later this year, with potential recommendations for new regulations to cap or ban certain fees.