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Solgrid for Solihull schools > Early Years and Childcare > Early Education Funding > Charging Parents

Charging Parents

The Early Years and Childcare Statutory Guidance explains what childcare providers can and can’t do when offering and delivering Early Education Funding for children.

Solihull Council will ensure this is followed but we are here to help clarify these rules for childcare providers and families.

The Department for Education have published a list of FAQs which should help you understand what is allowed. Much of the updated guidance was already set out in the previous LA statutory guidance.

What has changed or been stressed in the update?

  • The updated guidance puts transparency at the heart of how the entitlement should be passed on to parents. We expect providers to publish their charges on their websites, or, where they do not have any website, on local authority Family Information Services. The objective of this measure is that all costs should be clear to parents upfront. We are exempting childminders and providers caring for 10 or fewer children. We are aware that for some providers this will require changes, which is why we ask that providers have their charges published on their websites by January 2026.
  • The guidance also sets out that we expect providers to break their invoices down into
    • the free entitlement hours (with no charge);
    • additional private paid hours;
    • food charges;
    • non-food consumables charges;
    • and activities charges.

This is so that parents can see that they have received their entitlement hours completely free of charge, in accordance with legislation, and can easily understand what is and is not included in those entitlement hours. These changes should also be introduced by January 2026. You might need to speak to your software supplier if your current invoices don’t provide the above level of detail.

  • The statutory guidance further clarifies that the 15 or 30 hours must be accessible free of charge to parents; that is, that whilst providers can charge for extras there must not be any mandatory charges for parents in relation to the free hours. This is in line with the recent High Court judgment,
  • The guidance makes clear that providers should be mindful of the impact of charges on families, particularly the most disadvantaged. Any additional charges (for consumables, meals and snacks, extra activities, and additional hours) must be voluntary for parents.  Additional services should be on the basis of parental choice and a willingness to meet the charges.
  • Children who do not participate in optional activities must continue to receive provision that complies with the EYFS. LAs must ensure providers offer reasonable alternatives to parents that enable them to access the entitlements for free if they wish.
  • We have also clarified the things that providers can and cannot charge parents for, more clearly defining “consumables”.

We have also made an update to clarify existing expectations around flexibility in the statutory guidance. This clarifies that this relates to parents accessing entitlement hours and that there should be no artificial breaks in how entitlement hours are offered to parents, with an example provided outlining how offering entitlement hours for 10am-12pm and 1-3pm with only private paid hours available in between creates an artificial break. LAs and providers should work with parents to ensure that as far as possible the pattern of the entitlement hours are convenient for parents’ working hours. Providers should set out how many free hours parents are getting per day and per week, to ensure parents understand what free hours they are receiving over the calendar year from when their child first becomes eligible.

Are you seeking to stop providers from charging?

We are not seeking to stop providers from being able to charge for voluntary extras. However, we are updating the statutory guidance in line with the recent High Court judgment, to ensure it accurately reflects the underpinning legislation and to help support clarity and consistency for parents and providers around charging.

The Department expects many providers will continue to charge for things like food and we know many parents prefer to purchase food provided onsite. The Department will not encourage parents to opt out, but we must make clear that any charges cannot be mandatory, as reaffirmed by the court.

When do I need to implement these changes?

The changes to the statutory guidance will come into force from 1 April 2025 and LAs must have regard to it from that date.

In relation to the transparency changes, we expect LAs to ensure providers have listed additional charges clearly and upfront on websites and invoices by January 2026. We understand that providers may require some time to update their systems to be able to itemise these charges for parents, but we are clear that we want parents to be able to easily understand what any additional charges cover, and to be able to see that the entitlements are provided free of charge.

Are providers still able to make charges?

The guidance makes clear that providers can charge parents for additional hours, consumables and extra services, but these charges must be voluntary. The children who do not participate in optional activities must continue to receive provision that complies with the EYFS. LAs must ensure providers offer reasonable alternatives to parents that enable them to access the entitlements for free if they wish.

I provide food for the children and do not allow packed lunches. Can I charge for meals?

A nursery remains fully able to charge parents for a meal provided to a child. But if the parent is unable or unwilling to pay that sum, the nursery must make arrangements under which the child can eat food provided by the parents or alternatively waive the cost for the family.

The changes to the statutory guidance relating to additional charging will not prevent settings from being able to charge parents for the provision of food. The Department does not actively encourage parents to opt out, and we know many parents prefer to purchase food provided onsite. However, we must make clear that any charges cannot be mandatory, in line with the underpinning entitlements legislation.

But what about choking risks and allergies?

There is a requirement within the EYFS that states: ‘Before a child is admitted to the setting the providers must obtain information about any special dietary requirement, preferences, and food allergies that the child has’.  From September 2025 the requirements around safer eating will be strengthened and in addition will require that all settings must have ongoing discussion with parents regularly and where appropriate health professionals to develop allergy action plans for managing any known allergies and intolerances.  Providers will also be required to ensure that all staff are aware of symptoms and treatments for allergies and anaphylaxis. The Department for Education encourages settings to refer to the NHS advice on food allergies to support these arrangements.

There is already a requirement that children must always be within sight and hearing of a member of staff whilst eating.  From September 2025 this requirement will be strengthened so that where possible, a member of staff should sit facing children whilst they eat so they can make sure children are eating in a way to prevent choking and so they can prevent food sharing and be aware of any unexpected allergic reactions.

These requirements do not and should not prevent settings from allowing parents to bring in their own packed lunches or snacks. However, settings may choose to produce a ‘packed lunch policy’ regarding what food is permitted. Nurseries are free to set their own packed lunch policy, but this must comply with equality legislation. A packed lunch policy is to ensure all children are being offered healthy and nutritious food, to avoid choking risks, and to help prevent allergic reactions for children who may have airborne food allergies.

For full information and requirements settings should refer to the EYFS, including the strengthened requirements which come into force from September 2025.

Can we charge for “general extras”?

We are clear that we expect providers to be transparent in their charging arrangements, and expect providers to itemise their invoices, in order to make their charging arrangements clear and easy to understand for parents.

As per the recent High Court judgment, any mandatory charges in connection with the free entitlement hours are inconsistent with the legislation. The statutory guidance makes clear that providers can charge for certain consumables, food and additional activities but these charges must be voluntary for the parents.

Additional Questions and Answers

Can I charge parents a deposit to secure a funded place?

Yes, you can charge a reasonable deposit to book a place for a child but this must be returned to the parent when their child takes up their funded place.

You can only keep the deposit if the child doesn’t take up their funded place although we would encourage you to be flexible depending on the reasons why the child doesn’t take up their funded place.

Can I charge parents an administration fee to book a funded place?

No, administration fees are not permitted for a funded place. The intention of the funding is for the hours to be free for a child and whilst you can charge for services provided to the families an administration fee is not permitted.

Can I insist that parents pay for non-funded hours in addition to their child’s funded hours?

No, child should be able to access just their funded hours. You can set your own sessions but a condition of accessing a funded place should not be for the parent to have to pay for additional sessions.

However, many parents will want to book additional sessions for their child and the local authority will not get involved in these agreements or pricing structure you set for non-funded sessions.