The Department for Education has released updated statutory guidance on implementing the early entitlement offers, which includes revisions to the section on charging policies.
According to the new guidance, early years providers are permitted to charge parents for consumables (such as nappies and sunscreen), meals, snacks, and additional optional activities. However, these charges must be entirely voluntary, and parents must have the option to decline paying for any extras.
Additionally, the guidance introduces a new requirement for providers to supply parents with clear and detailed breakdowns of all fees and charges starting from January 2026.
The full updated guidance can be accessed here: Early education and childcare – GOV.UK
I agree that families should ideally have access to early entitlement hours without additional costs. However, the reality is that years of chronic underfunding have left most providers with no choice but to rely on extra fees to remain financially viable.
While it’s crucial for providers to be transparent with parents about optional charges, this guidance fails to address the severe financial pressures facing the sector.
Starting in September, the government will regulate pricing for approximately 80% of early years provision. This makes it absolutely critical that funding adequately covers the true costs of delivering these services. Unfortunately, this year’s funding increases are unlikely to offset the impact of April’s National Insurance and wage hikes, which are expected to drive up costs for both providers and families.
Although the guidance may help clarify charges for parents, it doesn’t resolve the underlying issue. Without urgent government action to address underfunding, many providers will be forced to raise prices for non-funded hours or optional extras—or risk closing their doors altogether.
