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Nurseries cannot charge extra to access free hours: updated guidance

185 replies

MidnightPatrol · 21/02/2025 14:59

The DfE has updated their guidance to say while nurseries may ask for voluntary contributions towards nappies, food etc - they may not have mandatory top up fees to access free hours. Councils will have the power to fine providers who are asking parents to pay extra.

news.sky.com/story/amp/parents-must-not-pay-mandatory-extra-charges-to-access-free-childcare-government-says-13313166

This is surely only going to reduce access to free hours for the majority, and push up costs for those paying for unfunded hours? And quite possibly, lead to nurseries closing.

Other consequences which we are already seeing:

  • Minimum attendance to access free hours (4 days for the 30 hours or 3 days for 15). I am not clear if this would be banned under the guidance.
  • Nurseries not offering the free hours
  • Unfunded hours becoming more expensive to offset

YABU - nurseries should not be able to charge extra
YANBU - nurseries need to be able to cover their costs

Given the funding is not enough to provide places, what exactly do the government expect the nurseries to do?

OP posts:
POTC · 21/02/2025 19:56

Jessbow · 21/02/2025 16:46

where your child is, if they are in nappies they need nappies, likewise food
Why should parents not be prepared to pay for them/supply them?

No one is saying you shouldn't have to pay for those things or provide them if your child needs them. £22 PER DAY top up is way more than those things are costing thr nursery though, and many nurseries are charging it even if you provide your own nappies and packed lunch!

JoyousEagle · 21/02/2025 19:54

Im pretty sure this was always the rule. Have they now said it will be enforced more strictly?

Goldfishgreen · 21/02/2025 19:54

My child’s nursery is quite cheap for the area and it is totally brilliant. They write really apologetically each year that they have to increase fees, and we just want them to increase the fees massively to make sure they don’t have to close. Waiting lists for alternative nurseries are about a year around here.

FrannyScraps · 21/02/2025 19:51

DragonFly98 · 21/02/2025 19:47

Which will be far worse for low income parents. If they call it food or nappies etc rather than a vague term then UC will not pay this part. That will lead to parents either struggling financially or a two tier system where children of wealthier parents have a hot meal cooked on site and the other children have a pack lunch.

Another win for the government who are enforcing this.

Fupoffyagrasshole · 21/02/2025 19:47

surreygirl1987 · 21/02/2025 19:42

Hmmm. My son's old nursery owner was absolutely raking it in, then pleading poverty re why parents had to pay huge top up fees. She was a millionaire from the profits though. I can't say that's happening at all nurseries, but it was a gold mine for her. The money was going somewhere...

Unless she had a chain of nurseries or no rent or business rates or staff to
pay - I don’t know how this is possible (unless it was hundreds per hour)

DragonFly98 · 21/02/2025 19:47

FrannyScraps · 21/02/2025 18:53

The change is they can't call it a blanket sustainability change. They need to break down on the invoices exactly what they are charging for and at what cost.

Which will be far worse for low income parents. If they call it food or nappies etc rather than a vague term then UC will not pay this part. That will lead to parents either struggling financially or a two tier system where children of wealthier parents have a hot meal cooked on site and the other children have a pack lunch.

Completelyjo · 21/02/2025 19:46

surreygirl1987 · 21/02/2025 19:42

Hmmm. My son's old nursery owner was absolutely raking it in, then pleading poverty re why parents had to pay huge top up fees. She was a millionaire from the profits though. I can't say that's happening at all nurseries, but it was a gold mine for her. The money was going somewhere...

The legal minimums for things like pay and staffing ratios literally don’t stack up for someone to be a millionaire from running one nursery.

Antsinmypantsneedtodance · 21/02/2025 19:46

Fupoffyagrasshole · 21/02/2025 19:22

I mean ours went up by 7% last year and seems same is happening again! But then minimum wage and NI has gone up as will the business rates this year! It’s all just not sustainable is it !! I think if the funding was even for 52 weeks rather than 38 that would be a good start ! Like most people need childcare 52 weeks a year right 🤪

Ours have gone up 14 percent this year alone. They were the highest in the area prior to the increase. Now they're significantly more. I worked out you could send your kid to the nearest very sought after independant school for over 3k less than you can send them to nursery 5 days a week.

HopingForSomeSunshineSoon · 21/02/2025 19:45

JLou08 · 21/02/2025 16:03

The funding is enough, those charging top ups are just greedy. There are no extra charges at my DCs nursery. The nursery has amazing facilities, a stable and knowledgeable staff team and have 2 nutritious home cooked meals every day.

It is not enough.

CarpetKnees · 21/02/2025 19:44

My childminder just subtracts the total funding amount she gets for us from our bill, so I know exactly what the council give her per hour.

She isn't "allowed" to do that.

Which is a shame, as it is the simplest, most logical, and most transparent way for the Gmnt subsidy to work.

CandidGreenSquid · 21/02/2025 19:44

This makes very little sense. I don’t know how all nurseries do it because I only have experience in the setting my DD goes to (full private day nursery in Wales). A full day is £70 but for those age 3 and over with funded hours, it’s £11 per day. It’s a HUGE saving compared to full fees. Why would you not pay a small fee for consumables to ensure your child has a place at the childcare setting you’ve chosen? I think you can even do the tax free childcare on the top up fee as well, making it even cheaper. I don’t get the logic of trying to enforce this and those parents who complain!

surreygirl1987 · 21/02/2025 19:42

Hmmm. My son's old nursery owner was absolutely raking it in, then pleading poverty re why parents had to pay huge top up fees. She was a millionaire from the profits though. I can't say that's happening at all nurseries, but it was a gold mine for her. The money was going somewhere...

Peclet · 21/02/2025 19:30

The funded hours scheme sounds great and is a vote winner but it is grinding the EY into dust with nurseries closing around us left right and centre.

It is almost impossible to make a profit.

Fupoffyagrasshole · 21/02/2025 19:22

Antsinmypantsneedtodance · 21/02/2025 19:19

I'm not seriously going to do it. Though I am at the point of disagreeing alot with the way the nursery are managing cost increases lately. Their fees are becoming unsustainable and are significantly above local market rates. We only have 6 months left so will suck it up till then. I don't expect them to be a functioning business within 5 years the way they're going.

I mean ours went up by 7% last year and seems same is happening again! But then minimum wage and NI has gone up as will the business rates this year! It’s all just not sustainable is it !! I think if the funding was even for 52 weeks rather than 38 that would be a good start ! Like most people need childcare 52 weeks a year right 🤪

Pickledpoppetpickle · 21/02/2025 19:22

JLou08 · 21/02/2025 16:34

Lancashire. The nursery gets 5.88 per hour for a 3 year old, a full day uses 10 of the free hours. Ratio of 1:8 for a level 3 practitioner, higher ratio if it is level 5 practitioner.
So 8 children equates to £47 per hour x 10 hours =£470 per day for 1 level 3 qualified. If you paid £15 per hour to the staff, which is actually pretty high for a level 3 childcare practitioner, there is still £320 per day left just for that group of 8 children to cover meals, running costs, managementwage/profit, meal, facilities. The nursery has about 50 children in total, some under 3s which they receive higher funding rates for so they will be getting that extra £320 per day a few times over. They also receive extra funding for children on SEN register and pupil premium for low income families.

I think you're being naive about actual operating costs - it's not justva case of £15 an hour. NI and pension contributions, management costs, insurance, rent or mortgage, business rates....and profit. Nurseries are not being run as charities (for the most part).

Hankunamatata · 21/02/2025 19:21

Free hours is a joke imo. It's never worked. It's put day cares out of business and reduced childminders who don't want the hassle.

Antsinmypantsneedtodance · 21/02/2025 19:19

Fupoffyagrasshole · 21/02/2025 19:13

You can - but they can just make it more difficult for you. Only accept full time children / only spread the hours over 5 days but not have sessions as an option you must do full days
most private nurseries only offer full days

I'm not seriously going to do it. Though I am at the point of disagreeing alot with the way the nursery are managing cost increases lately. Their fees are becoming unsustainable and are significantly above local market rates. We only have 6 months left so will suck it up till then. I don't expect them to be a functioning business within 5 years the way they're going.

FrannyScraps · 21/02/2025 19:14

Antsinmypantsneedtodance · 21/02/2025 19:10

And i can refuse to pay the sustainability charge? I guess also for older children who are potty trained they shouldn't charge for nappies and wipes in that. They need to itemise it for items we actually receive/use.

Yes but understand they'll just find another way. Either restricting hours or putting up other fees/ make it difficult for you.

Sunnysideup4eva · 21/02/2025 19:14

LittleRedRidingHoody · 21/02/2025 16:13

Isn't the funding £2 an hour or something ridiculous?

Our local nursery (Home Counties) is charging £120 a day or £105 after 15 hours (spread out across the year) and will 100% stop offering funded hours if pushed because there aren't enough nurseries anyway and spaces are in demand.

It's all very well forcing nurseries to accept funded hours but at the end of the day it'll end in closures and nurseries (most of which are private businesses trying to turn a profit, remember!) not offering funded hours which just leaves parents even more screwed. There needs to be a conscious effort to create and run nurseries that accept the hours, but realistically who is going to do this? No one is going to be lining up to run businesses for no profit - and the government seem to be making no plans to do this either.

No it was £5.62 per hour for 3 and 4 year olds (where the ratio is usually 8 children per adult, so pretty sure £40+ per hour should cover the staffing etc!! And £7.95 for 2 Yr old funding per child per hour. Childcare providers love to tell everyone the money is nothing, it's not.

Completelyjo · 21/02/2025 19:14

littleluncheon · 21/02/2025 19:01

Probably less than £12 for under 2s.
I get £9.60 for under 2s, £7.20 for 2s (both more than I charge) and £5.20 for 3+ (less than I charge).
The problem with private nurseries are that there are owners that want to make profits.

All nurseries should be state owned.

Disagree, parents should have the right to choose the childcare for their child. I choose to pay more for a nursery with good quality new facilities, a large garden, a free flow space etc.
I don’t want the limited provisions available at a state school nursery.

FrannyScraps · 21/02/2025 19:13

Completelyjo · 21/02/2025 19:11

It’s not supposed to be free at the point of access. Childcare providers are private businesses, they don’t have to operate at a loss. It’s fair enough for them to not accept someone who is only going to use the ‘free hours’ and pay nothing additional because the funding doesn’t cover their rate.

But that's not what the DFE statutory guidance says.

Fupoffyagrasshole · 21/02/2025 19:13

Antsinmypantsneedtodance · 21/02/2025 19:10

And i can refuse to pay the sustainability charge? I guess also for older children who are potty trained they shouldn't charge for nappies and wipes in that. They need to itemise it for items we actually receive/use.

You can - but they can just make it more difficult for you. Only accept full time children / only spread the hours over 5 days but not have sessions as an option you must do full days
most private nurseries only offer full days

weareladyparts · 21/02/2025 19:13

@Completelyjo not according to our local authority- that's the wording in the contract we sign as a private business.

Completelyjo · 21/02/2025 19:11

weareladyparts · 21/02/2025 19:08

But that's not free at the point of access is it and so not how it's supposed to be done.

It’s not supposed to be free at the point of access. Childcare providers are private businesses, they don’t have to operate at a loss. It’s fair enough for them to not accept someone who is only going to use the ‘free hours’ and pay nothing additional because the funding doesn’t cover their rate.

Antsinmypantsneedtodance · 21/02/2025 19:10

FrannyScraps · 21/02/2025 18:53

The change is they can't call it a blanket sustainability change. They need to break down on the invoices exactly what they are charging for and at what cost.

And i can refuse to pay the sustainability charge? I guess also for older children who are potty trained they shouldn't charge for nappies and wipes in that. They need to itemise it for items we actually receive/use.