Bridget Phillipson orders review of hidden childcare charges hitting parents

UK Education Secretary Bridget Phillipson has ordered a competition review into “hidden” charges that parents can face when using government-funded childcare in England, asking the Competition and Markets Authority to examine whether families are being hit with extra fees on top of the support they are meant to receive. ^[2][1]

The move, announced on May 24, comes amid concerns that parents accessing funded early years places can still encounter additional costs that are not always clear upfront. ^[2][1] The Guardian reported that Bridget Phillipson, the education secretary, is “ordering a competition review of hidden childcare charges amid concerns parents are being hit with extra charges.” ^[2]

The Independent said Phillipson “has urged the Competition and Markets Authority (CMA) to investigate hidden charges faced by parents accessing government-funded childcare” in England. ^[1] The request focuses on the early years childcare sector, where government-funded entitlements are intended to reduce costs for families but can be accompanied by extra charges that parents say can undermine the value of the support. ^[1][2]

The Competition and Markets Authority, the UK’s principal competition regulator, welcomed the request from Phillipson and said it would develop a proposal for a review into the early years childcare sector. ^[1] The Independent quoted the regulator’s response, reporting: “The CMA has welcomed the education secretary's request and will develop a proposal for a review into the early years childcare sector.” ^[1]

Phillipson, a British politician who has served as Secretary of State for Education and Minister for Women and Equalities since July 2024, is seeking to use the competition watchdog’s powers and expertise to scrutinize how childcare is priced and presented to parents who believe they are signing up for funded provision. ^[1][2]

The CMA’s next step will be to draw up its proposal for the review, following Phillipson’s request, as the government looks to determine whether the market is operating fairly for families relying on funded childcare places. ^[1]