In section A1.32 of the current statutory guidance, the DfE state that “government funding is intended to deliver 15 or 30 hours of a week of free, high quality, flexible childcare” i.e.: all eligible parents must be able to access a funded place which must be delivered free of charge.

What providers can charge for:

Providers can request a voluntary charge for meals, snacks as part of a Funded Entitlement place, and consumables such as nappies or sun cream, and for services such as trips, celebratory events, and specialist tuition. Charges must be proportionate to the child.

However, providers must offer an alternative of their own choice, to parents who are unwilling or unable to pay these additional charges. The charges cannot be a condition of accessing a Funded Entitlement place. All parents, including disadvantaged families, must have access to a free place if this is what they want. 

What providers cannot charge:

Providers cannot charge “top up” fees (any difference between a provider’s normal charge to parents and the funding they receive from the local authority to deliver Funded Entitlement places)

 The core costs of running a business are not consumables used by the funded child or additional services provided to the funded child, so cannot be charged for. Examples of core costs include rent, energy bills, cleaning products or PPE. Also, items such as arts and crafts materials would be considered part of the basic education provision so therefore cannot be charged for.

Further information regarding charging can be found at Early education and childcare - GOV.UK