Top Up Fees Crackdown from Councils

Top Up Fees Crackdown from Councils

Early years settings in England are not permitted to charge top-up fees when offering funded places as part of the various childcare entitlement schemes such as 30 hours. This is down to the government’s policy that the childcare itself should be accessible free to parents. However, with funding levels frequently insufficient for settings to make ends meet, some struggle to adhere to this rule. 

In theory settings should try to make up the difference in other areas, such as privately funded places and charging for consumables. However, investigations by the Local Government and Social Care Ombudsman, have found settings invoicing in a way that looks like a top up. This has resulted in local councils being ordered to repay parents the fees they were charged. As a result, local authorities may be taking a hard line in future and there is already anecdotal evidence of more settings being investigated. This can be a serious matter as funding may be pulled if a setting is found not to be compliant.

While many in the sector feel that the rules are unfair or draconian, government policy remains committed to the principle of free childcare. As a result, sector voices such as the NDNA are calling for local authorities to be more constructive and supportive when working with providers who are doing their best to deliver a high quality service under difficult conditions.