At Harrington Sinclair Law, we believe justice should be simple, especially when families are faced with unclear or unfair costs. Our litigation team recently helped a parent recover significant sums after being charged unlawful childcare fees by a registered provider. The case highlights how easily additional charges can be introduced without proper explanation, along with the protections available to parents when that happens.
What happened
Between August 2022 and April 2025, our client entered into a series of childcare agreements. While the initial agreement set out a weekly fee, later arrangements became increasingly unclear.
Key documents were not provided when requested, and new terms – including charges for ‘consumables’ (nappies, wipes, food and creams) – were introduced without proper transparency. Despite receiving funded childcare hours, the overall cost to the parent fluctuated in a way that was difficult to understand.
Unlawful charges introduced
The situation escalated in November 2024 when the provider introduced additional charges and a revised fee structure via WhatsApp. Under the Free Early Education Entitlement (FEEE) scheme, providers cannot require mandatory top-up fees for funded hours. While voluntary contributions may be requested, they must be clearly presented as optional.
In this case, that didn’t happen. Our client was not told the charges were voluntary and was given no justification for the additional costs, as they were already supplying consumables.
As a result, they paid a substantial amount that should never have been charged. Although the provider later acknowledged some level of overcharging, the partial refund offered fell well short of what was owed.
Further overcharging uncovered
As we investigated the matter, additional issues came to light, including:
- Early drop-off fees charged when they were not contractually applicable
- Full-day charges applied incorrectly during funded attendance periods
No refunds had been issued for these amounts before legal action began.
A failure of transparency and fairness
At the heart of this case was a lack of clear and honest communication. Our client was led to believe additional charges were mandatory when they were not, particularly in circumstances where they were already covering key costs themselves.
As a regulated childcare provider, the defendant had a duty to:
- Provide clear and accurate information about fees
- Avoid misleading parents
- Comply with FEEE funding rules and Ofsted regulatory standards
Those obligations were not met.
The impact on our client
This wasn’t just about money. The situation caused significant disruption to our client’s family life, including:
- Having to remove their child from the setting
- Stress to both parent and child
- Time off work due to anxiety and childcare disruption
- The pressure of finding alternative care at short notice
The outcome
Following legal action, we secured a settlement reflecting the full extent of the client’s losses, including:
- Unlawfully charged childcare fees
- Additional overpayments for early drop-off charges and incorrect full-day fees
- Compensation for distress and inconvenience
In total, the client recovered over £3,000 plus interest.
Holding organisations to account
While we’re best known for handling mis-sold finance, housing disrepair and personal injury claims, this case reflects a wider principle: when organisations fail to treat people fairly, they can be held to account.
Been charged unfair fees?
If you think you’ve been charged unfair fees, or something doesn’t feel right, it’s worth asking questions and getting the right support. We’re a modern, SRA-regulated law firm with a mission to make justice accessible for everyone. And our expert team can help you understand your options.
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