Government Clarifies Childcare Fee Rules Amid National Expansion

London, 15 February 2026 – The Department for Education has issued urgent clarifications regarding “hidden” childcare costs as the UK government continues its phased expansion of funded hours. With the February half-term currently underway, officials have moved to prevent providers from imposing mandatory top-up fees on parents using the 15 and 30-hour funded schemes. This comes as Swansea joins Merthyr Tydfil in offering universal free childcare for all two-year-olds under the Welsh Government’s Flying Start initiative.
Stricter Guidance on “Hidden” Charges
Following reports of families facing unexpected bills during school holidays, the government introduced stricter guidance on 9 February 2026. The new rules stipulate that while providers can charge for “extras” such as meals, nappies, or trips, these charges cannot be made a condition of accessing a funded place. Parents in England have been informed they cannot be forced to pay these supplementary costs to secure their entitlement.
The “term date rule” remains a point of contention for many families. Recent reports highlight that parents expecting seamless coverage during the February half-term may face significant fees if their provider does not offer “stretched” funding across the full 52 weeks of the year, leading to unexpected gaps in financial support.
Childcare Provision and Frameworks
All early years providers in England must adhere to the Early Years Foundation Stage (EYFS) statutory framework. This framework sets the standards for learning, development, and care for children from birth to age five. Settings are regularly inspected by Ofsted to ensure these standards are maintained, with an upcoming national briefing for providers scheduled for 2 March 2026.
Key Facts: Childcare Types and Funding
The childcare landscape in the UK is diverse, ranging from domestic childminders to large-scale private nurseries. Below are the primary settings and current funding statuses as of February 2026.
| Setting Type | Details |
|---|---|
| Day Nurseries | Private, voluntary, or independent (PVI) settings providing care from six weeks to five years. |
| Maintained Nursery Schools | State-funded schools, often attached to primary schools, offering education during school hours. |
| Childminders | Self-employed professionals providing care in a domestic home setting, often for flexible hours. |
| Flying Start (Wales) | Currently providing 12.5 hours of government-funded childcare for all two-year-olds in Swansea and Merthyr Tydfil. |
| EYFS Framework | The mandatory statutory framework for all providers to ensure health, safety, and development. |
Frequently Asked Questions
Can my nursery force me to pay for lunch if I use funded hours?
No. Under the clarified guidance issued in February 2026, providers in England cannot make the purchase of additional goods or services a condition of taking up a funded place. Parents must be offered an alternative, such as providing their own packed lunch.
What is changing in April 2026?
The government has published updated funding guidance valid from 1 April 2026. This aims to provide fair and transparent funding to support a diverse range of providers, ensuring that the expansion of free places remains sustainable for both nurseries and childminders.
How do children learn in these settings?
According to the EYFS framework, children learn through playing, exploring, and active engagement. Providers are required to foster creative and critical thinking through both indoor and outdoor activities to support healthy development.
