Is nursery allowed to do this?

[MSG2092]

I have just got a bill for April 2024 now that my 2YO has started receiving the funded hours.
Nursery used to charge £6.93 per hour and there was no additional charge for food.
My new bill now has food charges of £10.10 per day on the non funded days. They are still charging the same hourly rate, but the government is actually paying more than that for 2YOs funded hours. So they are making more than previously with these new hours and my saving isn't what it should have been. Can they do this?
For context, before funded hours my bill this month was £873.87 its now £626.99, so obviously i am happy with a saving but I was expecting it to make more of a difference but then they suddenly started charging for food. Oh and they aren't allowed packed lunch!

@ZoChan yes it does, thank you. It's one of many sectors that needs a lot of attention! I met a family from Norway last summer, they can never pay more than £250 a month for childcare! No matter how many hours they do, they said you'll never pay more than that! Amazing! Perhaps our government can learn how other countries do it so well.

The industry is on it's knees.
Actually it was on it's knees years ago. All through the covid times. And then the government have sliced off the legs. Or something.

I have friends who were all smug about the funded hours being extended. And now no nursery can cope. So many are closing or reducing hours or closing baby rooms. Childcare is like gold dust

Our government can't even rebuild dangerous school buildings

Part of the problem is nurseries are only given the info literally a couple weeks before it all has to be in place. So they got their new funding rates a week or so back, then have to work out all their rates between now and the April min wage increases where staffing costs may skyrocket plus the increase in costs for everything else such as food, bills etc.

Interesting thread- I'm waiting for my invoice as I'm concerned my nursery will do the same thing. I don't think it's right that the hourly charge is more than it would be without the funding. If I find it happens and I'm not much better off, I will withdraw my funding and pay (cutting my nose off to spite my face) but nurseries shouldn't be profiting more for funded children in my opinion and the "top up" should only be to match their advertised fees!

The government doesn't give the full cost of a place, this has always been the problem. 2yo need a 1:4 ratio. Min wage for one person to four children, staff pensions, VAT, ... pens, paper, playdough, books, toys, one to one time, snacks, meals, heating, lighting, rent/mortgate, water, repairs, etc, etc. Nurseries are certainly not profiting, they aren't even meeting their outgoings from the funded rates being offered.

The government has to step up and keep their promise to both parents and providers if they want truly free childcare in the UK by actually paying what it costs to offer that service. Childcare workers are professionals who don't earn anything close to professional wages and yet that is seen as acceptable by parents/government.