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UK Government Reviews Hidden Nursery Fees Amid Parental Concerns
Nursery fee rule change on table for all parents in England
Birmingham Live
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The UK government is reviewing hidden fees in nurseries after parents reported excessive charges. Education Secretary Bridget Phillipson has requested the Competition and Markets Authority (CMA) to investigate practices like nonrefundable deposits and compulsory add-ons that inflate childcare costs.
- 01Bridget Phillipson, the education secretary, has called for a review of hidden childcare charges by the CMA.
- 02Parents have reported additional costs including deposits and charges for essentials like meals and nappies.
- 03Neil Leitch, CEO of the Early Years Alliance, described these additional fees as a 'cross-subsidy'.
- 04Former CMA legal director Tom Smith noted the regulator's broad powers to enforce changes in the childcare sector.
- 05Phillipson emphasized the need for transparency, stating that many parents are not benefiting fully from government-funded childcare hours.
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In response to rising concerns over hidden fees in nurseries, UK Education Secretary Bridget Phillipson has initiated a review by the Competition and Markets Authority (CMA). Many parents have faced unexpected costs, such as nonrefundable deposits, compulsory add-ons, and charges for basic necessities like meals and nappies, which can total up to £16 per day. Phillipson's request aims to ensure that the childcare sector operates fairly for families. The CMA, which has previously investigated sectors like veterinary services and private dentistry, will assess whether the current practices in childcare are beneficial for consumers. The Department for Education has highlighted that numerous parents feel burdened by these extra charges, which detract from the intended benefits of government-funded childcare hours. Phillipson noted that while most nurseries provide excellent care, it is essential to address the issue of hidden costs that undermine the system's effectiveness.
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The review could lead to significant changes in how nurseries charge parents, potentially reducing hidden fees.
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