Parent gets paid £677 in compensation after fighting unfair ‘free hours’ nursery fees – could YOU claim money back too?

A PARENT has been awarded £677 in compensation from his local council after complaining that his daughter’s nursery charged him fees for free childcare hours, The Sun can reveal.

Earlier this year, we exposed how nurseries had begun charging parents new fees following the introduction of extra free childcare hours in April, which goes against government guidance.

We have seen evidence of “supplementary fees”, “registration fees” and new “consumables charges” being added, even where parents have offered to provide those consumables themselves.

Under government guidance, nurseries cannot charge so-called top-up fees, non-refundable registration fees or any other fees not clearly identified as for consumables, for free childcare hours.

Charging fees for consumables is allowed, but they should not be made a condition of accessing a free place and an alternative should be offered, such as providing your own items, the guidance says.

The extra free childcare hours in April was the first phase of a plan to offer 30 free hours to all eligible parents of children between nine months and three years old by September 2025.

But at the time, a number of parents reported seeing new fees being added to their invoices.

Nurseries have long argued that they don’t receive enough funding from the Government to offer free hours and need to find ways to make up the shortfall.

But the Government says the funding it provides is adequate.

Following our investigation earlier this year, the Department for Education said it was collecting evidence of nurseries charging extra fees for free hours and would intervene if it believed it was a widespread issue.

The Sun has now learned that one parent has won back £677 from his local council after complaining that his nursery was charging him a “supplementary fee” per hour of free childcare.

Alex Hays* from near Dover in Kent, was awarded £677 by Kent County Council following a five-month battle over the fees.

Alex and his wife only claimed 20 hours of childcare a week for their three-year-old daughter, so all of these hours were funded.

But he said their nursery, Kid Ease in Swingfield, near Dover, charged them £1.50 per hour, or £150 a month, in so-called supplementary fees for those funded hours.

Then in March this year, Kid Ease emailed Alex a letter that let him know these fees would be rising to £1.95 an hour.

The letter from the childcare provider, seen by The Sun, blamed the fee hike on a “turbulent economy” and “inflationary pressures” putting it under financial pressure.

“Together, these factors mean we will need to introduce a fee increase from 1st April 2024,” the letter said.

It went on to say parents would now be charged a supplementary fee of £1.95 per hour of funded childcare.

At this point, Alex began researching whether parents could be charged supplementary fees and discovered this was actually against government guidelines.

“I knew they probably shouldn’t have been charging the fees, but when they increased them I decided I’d had enough,” Alex said.

“I asked for an itemised breakdown of what the fees were paying for, but they just said it was for consumables like food and refused to give me an actual breakdown.”

Alex and his wife then decided to formally complain to Kent County Council, which appointed a third party, The Education People, to investigate.

After 12 weeks with no response, they escalated the case to the Local Government Ombudsman, which gave The Education People 28 working days to provide a final response.

Finally, in September, The Education People found in favour of Alex, and, in an email seen by The Sun, said it was working with Kid Ease to ensure it complies with the Kent Provider Agreement going forward.

Alex and his wife paid a total of £909 in extra fees for claiming free childcare hours to Kid Ease nursery and received back £677 in compensation – roughly 75%.

This was because they had £4 per day deducted for lunches for 58 days, totalling £232.

The family has since moved their daughter to another nursery.

Alex is now urging other parents to complain if they are being charged any extra fees for free hours.

“The guidelines are very clear, working parents absolutely cannot be forced to pay extra fees by providers and shouldn’t feel that they have to in order to receive or continue receiving free childcare,” he said.

“If you are a parent and want to pay fees for additional services, that’s completely up to you, but I’d encourage you to at least ask what it’s paying for.”

A Department for Education spokesperson told The Sun: “We have published statutory guidance for local authorities which makes clear that extra charges for consumables or additional hours should not be made a condition of accessing a free place – and continue to monitor this issue closely.”

The Sun contacted Kent Council for further comment. It is understood that Kid Ease is challenging the decision by The Education People.

Kid Ease states it may charge a “supplementary fee” for funded hours in its most recent terms and conditions available online.

New fees for free childcare hours

Alex is one of a number of parents who has complained that they began being charged new fees when extra free childcare hours kicked in.

Earlier this year, one parent told The Sun they began being charged a compulsory £29 daily “consumables charge”, regardless of whether they were only claiming free hours or not.

They were also charged a £55 “non-refundable registration fee” just for registering for their free hours, which is explicitly against government guidance.

An email to the parent, whose child attended a nursery in West Byfleet, Surrey, said: “All children claiming funding of either 15 or 30 hours per week will be required to pay a daily fee for consumables.

“When claiming a funded-only place, parents are required to pay a non-refundable £50 registration fee.”

Another parent from Huddersfield reported seeing a compulsory consumables charge worth “1x daily rate” appear on her monthly invoice, worth an extra £61. She only claimed free childcare hours.

Unfortunately, many parents are afraid to stand up their nursery because they’re scared of their place being withdrawn – but it’s important to remember these charges actually aren’t allowed to be compulsory under government rules

Martyn Jamesconsumer expert

Since our previous investigation, The Sun has learned the West Byfleet nursery has written to parents informing them it will be removing the compulsory charge for free childcare hours.

But many parents are still faced with these fees – and experts say that parents are too afraid to complain for fear of losing their childcare place.

Consumer expert Martyn James said: “Unfortunately, many parents are afraid to stand up their nursery because they’re scared of their place being withdrawn.

“But it’s important to remember these charges actually aren’t allowed to be compulsory under government rules.”

What fees can nurseries charge?

Nurseries are allowed to charge for consumables, even for free childcare hours. This can cover things like food, nappies or other items used during the day.

However, these fees cannot be compulsory. The nursery must offer a reasonable alternative, such as allowing you to provide your own consumables or forfeiting trips out.

Under government guidance, nurseries are not allowed to charge:

• A top-up fee (any difference between a provider’s normal charge to parents and the funding they receive from the LA to deliver the free place)
• A non-refundable registration fee. (A fee to register for a place that is not returned to you when you take up that place. This may also be called an “enrolment fee”, “admissions fee” or “booking fee”)
• Any additional fees on top of your funded hours that are not specifically identified as being for any consumables – although providing these yourself should be an alternative option

The government advises that parents should speak to their local authority or provider about any additional charges on top of the childcare hours they receive through the entitlement, including any alternative options they offer.

How to complain if you think you’re being charged unfairly for free hours

If you’re unhappy with the fees your nursery or childminder is charging you, your first port of call should be to speak to your provider.

Ask them for a breakdown of what any extra fees are paying for, and remind them of government guidance.

If they refuse to provide a breakdown or offer an alternative, raise a formal complaint.

They should have a formal complaints process they can share with you.

If you don’t agree with the outcome of the complaint, you can speak to Citizens Advice for further assistance or legal advice.

Or, like Alex, contact your local council to start a complaint that way.

It’s best to keep any evidence you can to back up your claim, such as emails detailing any charges, or correspondence refusing to provide a breakdown or alternative options.

Mr James advised: “If you’re worried about losing your place, consider speaking to your local council to let them know anonymously, or ask Citizens Advice if it can intervene without revealing who you are.”

*name changed to protect identity

Do you have a money problem that needs sorting? Get in touch by emailing squeezeteam@thesun.co.uk