The press release issued by the Department for Education on 26 May 2026.
Education Secretary writes to the CMA to examine the childcare market and launches a free tool helping families find childcare and budget for costs.
Government is standing up for parents facing eye-watering childcare costs including non-refundable deposits and basics like nappies and suncream.
The Education Secretary has written to the independent Competition and Markets Authority (CMA) as part of new government action to tackle hidden childcare fees hitting families.
While funded hours are meant to be free, too many parents report being asked to pay extra to secure a place including upfront deposits, compulsory add-ons, or additional hours to access their entitlement.
These practices undermine the value of 30 hours of free childcare and add to the pressure on working families. Nearly three quarters (72%) of parents say they are using savings to cover extra charges, while more than one in four (27%) say cost remains the biggest barrier to accessing the childcare they need.
A new free cost of living tool will also help parents make the most of the childcare offer, from finding local provision to planning and getting exactly what they are entitled to.
Government support is already massively reducing costs, with eligible families saving an average of £8,000 a year per child and more than 500,000 families now benefiting from funded hours.
Education Secretary Bridget Phillipson said:
I grew up in a family that knew what it meant to count every penny. I am so proud of the crucial difference that 30 hours funded childcare makes to family finances, saving £8,000 a year per child on average.
The vast majority of nurseries and childminders have been brilliant in helping us deliver, but I will not accept the small minority letting families down and stopping them get what they were promised.
The government has also asked the CMA to do more to investigate the role private equity and other ownership models are playing in the childcare market, including whether they are working in the interests of families or driving up costs and creating risks for those who depend on their local nursery.
The new cost of living tool also includes a trial of a new map of local childcare. Launching first in Bristol, South Gloucestershire and Bath and North East Somerset, the map will help families find funded childcare near them while promoting local nurseries and childminders to more parents. Families nationwide will be able to use it later this year.
This work sits alongside a wider government drive to make life simpler and more affordable for families. The newly launched GOV.UK Chat – a new AI tool that allows parents to ask questions in plain English and get instant answers about what support they could have – means help is now available at any time of day.