Early Years Funding: High Court rules against mandatory additional charges

Insight

29.04.2025

The High Court has recently handed down judgment on a case about the Free Early Years Entitlement Scheme (link to the judgment here). Under the Scheme, families can access 15 or 30 hours of free childcare from participating nurseries and other childcare providers, including independent schools with nursery provision. Under the terms of the Scheme and in line with statutory guidance issued to local authorities about the Scheme, providers must offer the hours “completely free of charge” to parents and are prohibited from charging “top up” fees (eg any difference between the provider’s normal charge to parents and the funding received from the local authority).

In this case, a parent’s child attended a privately operated nursery, and the parent was required by the nursery to pay additional charges. The question, therefore, was whether providers are prohibited from imposing mandatory additional charges. The judge held that, in accordance with the relevant guidance, any additional charges must be voluntary and the free hours “must be available to be accessed by a parent (or parents) without a parent being required to pay anything to the nursery provider”.

The case is an important reminder of one of the key rules underpinning the Scheme, which can sometimes be difficult for independent nurseries to comply with – for example, because systems and procedures are designed around an assumption that everyone will purchase additional hours or services. The statutory guidance on the Scheme has recently been updated, effective from 1 April 2025, and we will issue a further briefing in due course. In the meantime, if you would like any further advice, please contact Jeremy Isaacson or Genna Morgan.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.