Father given £1,173 refund from nursery in England after ‘top-up' fees investigation

The Guardian

12-07-2025

A nursery has refunded a father almost £1,200 after an investigation found he had been charged mandatory 'top-up' fees for hours of childcare that should have been free.
Tiago Gomes's daughter was eligible for government-funded childcare at the Lake House day nursery and preschool in Bristol but he was told that he must pay an extra compulsory fee for 'consumables'.
In England, children aged three and four can receive 30 hours of free childcare a week, while those aged between nine months and two years now qualify for 15 hours.
The law says nurseries must be transparent about additional charges for consumables – such as nappies and sun cream – and they must be optional. Nurseries are not allowed to apply top-up fees.
The Local Government and Social Care Ombudsman has investigated 23 complaints about fees, and earlier this year the high court ruled in its favour in a separate case involving Bournemouth, Christchurch and Poole council.
A spokesperson for the ombudsman said many parents were not aware of a council's duty to intervene with nurseries that were not following government rules.
Gomes paid for some additional hours of childcare and was charged a total of £1,033 a month. He was told that for each government-funded hour there was a 'parent contribution charge', which paid for 'essential care products, educational programmes, expert nutrition'.
The level of this charge – which was also applied to other parents' bills – was not broken down on his invoice.
He complained to Bristol city council, which found that the nursery had not made clear that the charges were voluntary.
Gomes asked the nursery for a refund, but none was given. He then complained to the ombudsman and was refunded the £1,173 he had paid in the additional fees.
The Lake House day nursery and preschool in Westbury-on-Trym, Bristol, is one of more than 80 nurseries and preschools operated by Grandir UK.
In a statement to the Guardian, Grandir UK said: 'We are dedicated to maintaining full transparency and are committed to ensuring our families receive high-quality care and education. We ensure that our families have a clear understanding of what is included in their funded entitlement and any additional services that may incur charges.'
It did not respond to queries about whether other parents had made similar complaints or whether there had been other refunds.
The ombudsman said that after Gomes's complaint the nursery had delayed providing information to a council audit. It asked the council to show that other parents were not being charged additional fees.
Councillor Christine Townsend, the chair of the children and young people committee on Bristol city council, said it has received two complaints about the provider.
'We agree with the ombudsman's findings on the provider and are taking appropriate action, including a full financial audit,' she said. 'We also note the ombudsman found no fault with the council's actions.
'Affordable, high-quality childcare is essential for Bristol families, and we remain committed to supporting them.'
The council is looking for details from the nursery on consumables being an optional charge, it said.
Nurseries have complained that the funding for nursery hours is insufficient at a time when wage costs are increasing. A survey by the Early Education and Childcare Coalition found a third of providers have limited the number of government-funded hours on offer. One in 10 say they will close within two years because of the pressures on the sector.
Lauren Fabianski from the EECC said the shortfall was frustrating to providers and parents as the funded childcare was being labelled as free but 'the government is not funding it in a way that actually makes it deliverable for free'.
A spokesperson for the Department for Education said: 'High-quality, affordable childcare plays a vital role in our plan for change to get tens of thousands more children each year ready for school.
'That's why we are increasing early years funding to over £9bn next year – with a recent Coram survey showing the real difference the rollout is already making, as costs for families accessing 15 hours have more than halved.
'We are backing parents with new guidance – reflecting the law reaffirmed by a recent high court judgment – which sets out that additional charges must not be a condition for parents accessing their funded hours, saving families money.'
The spokesperson for the ombudsman said: 'The high court has confirmed the ombudsman's position that providers cannot place mandatory charges on free hours.'