Education secretary to order review of hidden childcare costs

Education Secretary Bridget Phillipson has asked the UK’s competition watchdog to examine “hidden” extra charges faced by parents trying to secure childcare places in England, ordering a review by the Competition and Markets Authority on May 25, 2026. ^[1]

Phillipson, who serves as Secretary of State for Education and Minister for Women and Equalities, wrote to the Competition and Markets Authority in May seeking details about how additional fees imposed by childcare providers affect both parents and providers. ^[2] The Competition and Markets Authority is the United Kingdom’s principal competition regulator. ^[1]

Ministers’ concern, as reported by the BBC, is that families can still face costs beyond headline childcare fees, including non-refundable deposits and extra charges for items such as meals, snacks, nappies and suncream as a condition of securing a place. ^[1] The focus on these add-ons reflects worries that parents may be unable to compare providers accurately if the full cost of childcare is not clear upfront. ^[1]

The Competition and Markets Authority signaled it was open to the request. ^[2] A spokesperson for the regulator said: “We welcome the request from the education secretary to ca” in response to Phillipson’s call for an investigation into hidden childcare charges. ^[2]

Phillipson’s request asks the Competition and Markets Authority to set out what it knows about the impact of extra charges across the childcare market in England, according to The Independent’s account of her letter. ^[2] The BBC reported that the review was ordered on May 25. ^[1]

The Competition and Markets Authority’s work will now be expected to examine how widespread these additional charges are and what they mean for families trying to budget for childcare, following Phillipson’s request for details on their impact. ^[2]