UK education secretary Bridget Phillipson has asked the UK’s competition watchdog to examine the role of private equity-backed operators in the country’s childcare market, as the government ramps up scrutiny of household costs and service provision, according to a report by Bloomberg.
The Competition and Markets Authority has been asked to investigate so-called “hidden childcare fees”, including non-refundable deposits paid to put children on waiting lists for child-minding services, and additional charges for items such as nappies and suncream.
The review will also assess whether private equity ownership structures within the childcare sector are contributing to rising costs or creating operational risks for families reliant on local nursery provision.
The move comes as the government is expanding its childcare programme, extending free provision beyond 3- and 4-year-olds to younger children. Government spending on childcare is expected to reach £9.5bn this fiscal year, up from £4bn prior to the expansion.
