Latimer Tuition

Navigation

Latimer Tuition

Parent guide | Early years funding

Hidden childcare costs: what funded hours should and shouldn’t cost parents

Funded childcare hours should be free at the point of use, but nursery bills can still include optional extras and extra paid hours. Here’s what to check before you sign or query a bill.

Check common chargesSee UK differences

Editorial

  • Portrait of Robin GibbonsLead authorFounder & CEO·Latimer Tuition
  • Reviewed byHeather LatimerTutor Matching & Customer Service·Latimer Tuition
  • Published
  • Last reviewed

Current answer

Can nurseries charge extra for funded childcare hours?

For parents in England, the clearest answer is: the funded hours themselves should be free. The Department for Education statutory guidance says: “There must not be any mandatory charges for parents in relation to the free hours.” — Department for Education statutory guidance

That does not mean every item on a nursery invoice is free. A provider may charge for genuine optional extras, such as meals, nappies, sun cream, optional activities or extra private paid hours, but those charges should be voluntary, clear and not a condition of taking the funded place.

The UK picture is not one single rulebook. England has the most detailed published charging rules in the DfE guidance; Scotland, Wales and Northern Ireland use different childcare schemes and wording. The practical test for parents is still similar: ask whether the funded place itself is free, whether the extra is optional, and whether the charge is clearly itemised.

Why hidden childcare costs are in the news

On 26 May 2026, the Department for Education announced action on hidden childcare costs after parents reported extra fees linked to funded hours. GOV.UK described the concern as parents being asked for “upfront deposits, compulsory add-ons, or additional hours to access their entitlement”. — GOV.UK / Department for Education

The Education Secretary asked the Competition and Markets Authority to look at parts of the English early-years childcare market, including paid hours or fees, restrictions on funded hours, consumables, waiting-list fees and deposits. The CMA response used for this guide said it would develop a proposal for its Board, so this article should not be read as saying the CMA has already published findings.

The parent problem

Families may see a funded-hours place advertised as free but still face deposits, consumables, compulsory add-ons, bundled charges or extra sessions on the bill.

The official concern

The DfE’s request to the CMA is about whether families are getting the full benefit of funded childcare and whether fees are clear and fair.

What has and has not happened

The official correspondence shows a request and a CMA response about developing a proposal. It does not show final CMA findings.

Key terms on a nursery bill

These terms help you read a nursery quote, contract or invoice without treating every extra charge in the same way.

Hidden childcare costs

A parent-friendly phrase for charges linked to a funded place that are unclear, unexpected, bundled with the place, or presented as compulsory when they may need to be optional.

Funded or free childcare hours

Government-funded early-years childcare or education hours. In England these are often described as 15 or 30 free hours; the funded hours should be free, but optional extras may still appear separately.

Chargeable extras

Items or services around a funded place that may be charged only where the parent can choose them and the charge is transparent, such as meals, consumables or optional activities in England.

Compulsory extras

Extras that are presented as a condition of taking a funded place. In England, DfE guidance says chargeable extras must not be a condition of accessing a free place.

Top-up fees

The difference between the provider’s usual fee and the government funding for a free place. In England, these are listed as charges that local authorities must take steps to prevent in connection with entitlement hours.

Parental declaration

In England, this should set out the free hours, the pattern of hours and any optional charges agreed before the child first takes up a free place.

Charges to check before you accept a funded childcare place

Use this table to separate funded hours, optional extras and charges that should be queried. The England rules below come from DfE statutory guidance; see the UK comparison for Scotland, Wales and Northern Ireland. DfE guidance also says parents should not lose access to a funded place because they do not pay voluntary charges. Exact wording: “parents should not be declined a free place” — Department for Education statutory guidance.

A parent-facing table showing common childcare charges, how they are treated in England's DfE guidance, and what to ask a provider.

Charge or conditionWhat the guidance saysWhat to ask the provider

Funded entitlement hours

In England, parents should not be charged for the funded entitlement hours themselves.

Can you show the funded hours separately at £0 on the invoice?

Meals and snacks

In England these can be chargeable extras, but the charge must be voluntary when linked to the free hours. Wales has separate rules and food-charge caps.

Can we opt out, provide food ourselves where suitable, or see the charge listed separately?

Nappies, wipes or sun cream

In England, consumables can be charged as voluntary extras, with reasonable alternatives such as parents supplying items themselves or the provider waiving the cost.

What alternative do you offer if we do not buy the consumables package?

Optional activities or trips

In England, optional activities not necessary for delivering the Early Years Foundation Stage can be charged where participation is by parental choice.

Is this activity optional, and what will my child do if we do not choose it?

Additional private paid hours

Providers can charge for extra hours beyond the funded entitlement, but in England buying those hours must not be a condition of accessing a free place.

Are the extra hours optional, or are they being required before we can use the funded hours?

Top-up fees

In England, top-up fees linked to entitlement hours are listed as charges local authorities must take steps to prevent.

Is any part of this fee covering a gap between your usual rate and the funding you receive?

Learning materials or business running costs

In England, necessary childcare materials and business costs such as rent, utilities or wages should not be charged to parents in connection with entitlement hours.

What item or optional service is this charge for, and why is it separate from the funded entitlement?

Non-refundable deposit or registration fee

In England, DfE guidance lists non-refundable registration fees and non-refundable deposits as charges that should not be a condition of taking up a free entitlement place. This does not mean every deposit in every circumstance is banned.

Is this a condition of taking up the funded place, is it refundable, and what happens if we do not take up the place?

General enrichment, sustainability or additional charges

In England, non-itemised enrichment, sustainability, business-continuity or supplementary charges are listed as charges local authorities must take steps to prevent where they sit on top of free hours.

Please itemise this charge and confirm whether it is an optional extra we can decline.

What a clear funded-hours invoice should show

The DfE guidance for England says: “Invoices and receipts should be itemised”. — Department for Education statutory guidance

A clear invoice should help you see that the funded hours are not being charged as part of a bundled nursery fee.

  • Funded hours at no cost

    The funded entitlement hours should be listed separately, rather than only shown as a discount from a full-price bill.

  • Additional paid hours

    Extra private hours should be shown separately, with the rate or total charge clear enough to understand.

  • Food charges

    Meals and snacks should be shown as their own charge where they are being billed.

  • Non-food consumables

    Nappies, wipes, sun cream or similar consumables should not be hidden inside a general fee.

  • Activities charges

    Trips, events or specialist sessions should be itemised if they are being charged.

  • Optional charges agreed in writing

    The invoice should match what you agreed in the parental declaration, contract or written fee schedule.

  • Opt-out alternatives

    Where a charge is linked to free hours, ask what alternative is available if you do not want to buy it.

A message you can adapt

Message to ask for a fee breakdown

When this applies

You have been offered a place or received a bill, but the charges are bundled, unclear or presented as compulsory.

Suggested wording

Hello [name], please could you send a written breakdown of our bill showing the funded hours at £0, any additional paid hours, and any meals, consumables or activity charges separately? Please also confirm which charges are optional, what alternatives are available if we do not opt into them, and whether taking the funded place depends on buying any additional hours or services. Thank you.

Why this helps

It asks for itemisation, opt-out options and written confirmation without accusing the provider or making unsupported legal claims.

England, Scotland, Wales and Northern Ireland: what changes?

Use this as a scope check before applying a rule to your bill. The same broad parent concern exists across the UK, but the schemes are not identical.

A four-nation comparison of funded childcare wording and extra-charge rules.

NationFunded childcare wordingCharges to note

England

DfE guidance covers free entitlements, including 15 or 30 funded hours depending on age and eligibility.

Detailed DfE charging rules say optional extras must not be a condition of a free place, and invoices should show funded hours separately.

Scotland

mygov.scot says 3- to 5-year-olds can get up to 1,140 funded Early Learning and Childcare hours a year.

Scottish statutory guidance says the funded entitlement “must be provided without the payment of fees”. Optional extras may be charged only where they remain optional. — Scottish Government

Wales

The Childcare Offer for Wales gives eligible parents up to 30 hours of combined funded nursery education and childcare a week for 3- and 4-year-olds.

Welsh Government guidance says funding covers education and care, but “It does not include food, transport or off-site activities”. As at the last review date, providers should not charge more than £11.25 per day for food or £7.20 for a half day including lunch. — GOV.WALES

Northern Ireland

Northern Ireland uses the Pre-School Education Programme rather than England’s 30-hour funded-hours scheme.

Education Authority guidance says funded pre-school places are “free to parents because they are funded” and normally involve five 2.5-hour sessions a week during the school year. Some settings may charge for additional services if they make clear those services are additional. — Education Authority Northern Ireland

What to do if a childcare charge still seems wrong

Start with a calm request for written detail. Keep a dated record of what you asked, what the provider sent back and which official rule or policy you are relying on.

  • Ask for itemisation

    Request the fees policy, chargeable-extras list, written contract terms and an itemised invoice showing funded hours separately.

  • Ask whether the charge is optional

    Ask what alternative is available if you do not want the meal, consumables package, activity, trip or extra hours.

  • Ask whether the place depends on the extra

    For England, DfE guidance is clear that chargeable extras and extra private paid hours must not be a condition of accessing a free place.

  • Use the provider’s complaints process

    If the answer is still unclear, use the provider’s own complaints process and ask for a written response.

  • Use the relevant public body carefully

    In England, the local authority early-years or family-information team is often the relevant contact for funded-entitlement conditions. Ofsted can receive childcare complaints but says it cannot resolve individual disputes between parents and providers. In Wales, CIW says concerns should usually be raised with the registered service first. In Northern Ireland, Early Years Teams can provide information and advice on day-care services and standards.

Official sources used for this guide

These are the main official references behind the guidance above.

  • GOV.UK / Department for Education — hidden childcare costs announcement

    Official news context, published 26 May 2026

    Open source

  • Department for Education — early education and childcare statutory guidance

    England statutory guidance, valid from 1 April 2026

    Open source

  • Department for Education letter to the CMA

    Official correspondence, 26 May 2026

    Open source

  • CMA letter to the Education Secretary

    Official response, 26 May 2026

    Open source

  • mygov.scot — funded early learning and childcare

    Scotland parent guidance, last updated 1 April 2026

    Open source

  • Scottish Government — funded ELC without fees

    Scottish statutory guidance

    Open source

  • Scottish Government — optional extras

    Scottish statutory guidance

    Open source

  • GOV.WALES — Childcare Offer overview

    Welsh Government guidance

    Open source

  • GOV.WALES — charges for food, transport and activities

    Welsh Government guidance; food-charge caps are date-sensitive

    Open source

  • Education Authority Northern Ireland — pre-school places

    Northern Ireland admissions guidance

    Open source

  • nidirect — Early Years Teams

    Northern Ireland parent advice and standards context

    Open source

  • Ofsted — complaints procedure

    England complaint caveat

    Open source

  • Care Inspectorate Wales — raise a concern

    Wales complaint caveat

    Open source

Related guidance

More guidance from this section

More guidance from this part of the Ed Centre that may help with the same decision, stage or next step.

Related guidance

Homeschooling GCSE costs in the UK

Understand the main costs behind GCSE exam entry, centre fees, subject extras, courses, tutoring and low-cost routes before you commit.

Support and clarity

Frequently asked questions

Straight answers to the questions people ask most often.

Can nurseries charge extra for funded childcare hours?

In England, funded 15 or 30 hours should not have mandatory costs attached to those hours. Optional extras and extra private paid hours can be charged only when they are genuinely optional, clear and not a condition of the funded place. Other UK nations use different schemes, so check the nation-specific comparison above.

Are nursery deposits allowed for free childcare hours?

Do not treat this as a blanket rule that all deposits are banned. In England, DfE guidance lists non-refundable registration fees and non-refundable deposits as charges local authorities must take steps to prevent where they are a condition of taking up a free entitlement place. The same guidance notes that a provider may retain a deposit if the parent does not take up the place.

Can a nursery make me pay for meals, nappies or consumables?

In England, meals, snacks and consumables such as nappies or sun cream can be chargeable extras, but the parent must be able to opt out where the charge is linked to free hours. The provider should offer reasonable alternatives, such as allowing parents to supply items themselves or waiving the cost. Wales has its own food-charge rules and published caps, so exact Welsh food-charge figures should be checked against the current Welsh Government page.

Can a nursery force me to buy extra hours to access funded hours?

In England, extra private paid hours may be charged where parents choose them, but buying additional hours must not be a condition of accessing a free place. A provider may not offer every pattern of funded hours, so separate scheduling availability from a requirement to buy extra hours.

What should a funded-hours invoice show?

A clear invoice should show free entitlement hours separately from additional private paid hours, food charges, non-food consumables and activity charges. It should help you see that the funded hours have been provided free of charge and that any fees relate to extras or additional hours.

Do the same childcare funding rules apply across the UK?

No. England, Scotland, Wales and Northern Ireland use different schemes, names and charging guidance. England’s DfE rules should be used for England only; Scotland uses funded Early Learning and Childcare, Wales has the Childcare Offer, and Northern Ireland has the Pre-School Education Programme.

What can I do if a nursery adds hidden or unclear charges?

Ask first for the written fees policy, the chargeable-extras list and an itemised invoice. Ask which charges are optional, what alternatives are available and whether the funded place depends on buying the extra. If the provider will not explain, use its complaints process and then the relevant local authority or regulator pathway for your nation. Do not assume any complaint will automatically lead to a refund.

Is Tax-Free Childcare the same as funded childcare hours?

No. Tax-Free Childcare is a separate support scheme using an online account and government top-up. Funded childcare hours are separate early-years entitlements or funded pre-school provision, depending on where you live. Parents can use GOV.UK or nidirect childcare-support pages to compare the different schemes.

Sources and references

Sources and references

  • 1.
    GOV.UK / Department for Education

    Department for Education · · Accessed

    Official DfE announcement on hidden childcare costs and parent-reported deposits, add-ons and extra hours.

  • 2.
    Department for Education letter

    Department for Education · · Accessed

    Primary DfE letter asking the CMA to consider hidden fees, paid hours, restrictions on funded hours, consumables, waiting-list fees and deposits.

  • 3.
    CMA letter

    Competition and Markets Authority · · Accessed

    CMA response letter used to avoid overstating the status of any CMA work.

  • 4.
    Department for Education statutory guidance

    Department for Education · · Accessed

    Core England statutory guidance on funded-hours charging, voluntary extras, prohibited charges, itemised invoices and parental declarations.

  • 5.
    GOV.UK childcare support

    GOV.UK · Accessed

    GOV.UK step-by-step childcare support page used to distinguish funded hours from other childcare-support schemes.

  • 6.
    GOV.UK working-parent childcare

    GOV.UK · Accessed

    Parent-facing GOV.UK overview of England working-parent childcare support.

  • 7.
    mygov.scot

    mygov.scot · · Accessed

    Parent-facing Scotland source for funded Early Learning and Childcare hours.

  • 8.
    Scottish Government

    Scottish Government · · Accessed

    Scottish statutory guidance on funded Early Learning and Childcare delivered without fees.

  • 9.
    Scottish Government

    Scottish Government · · Accessed

    Scottish statutory guidance on optional extra charges.

  • 10.
    GOV.WALES

    Welsh Government · Accessed

    Welsh Government overview of the Childcare Offer for Wales.

  • 11.
    GOV.WALES

    Welsh Government · Accessed

    Welsh Government guidance on food, transport and off-site activity charges.

  • 12.
    Education Authority Northern Ireland

    Education Authority Northern Ireland · Accessed

    Education Authority Northern Ireland guidance on funded pre-school places and additional services.

  • 13.
    nidirect

    nidirect · Accessed

    nidirect guidance on Early Years Teams in Northern Ireland.

  • 14.
    nidirect

    nidirect · Accessed

    nidirect childcare-support page used only to distinguish adjacent childcare-support schemes.

  • 15.
    Ofsted

    Ofsted · Accessed

    Ofsted complaints procedure, including limits on resolving disputes between parents and providers.

  • 16.
    Care Inspectorate Wales

    Care Inspectorate Wales · Accessed

    Care Inspectorate Wales guidance on raising concerns about childcare and play services.