Free childcare increase ‘is price fixing’

Family|February 22nd 2017

A group of childcare professionals have claimed that government plans to offer 30 hours of free childcare per week from September constitute price fixing and an abuse of the market.

Members of a campaign group called Champagne Nurseries on Lemonade Funding have written to the Competition and Markets Authority on the issue, in funding for  the free hours will not cover their costs, forcing many childcare providers to close.

They insist that government-defined payments for the mandatory free hours are “price fixing of both the purchase and sales price is an abuse of market control”.

A representative of the group told Children & Young People Now they foresaw “the real threat of closure for some settings [nurseries] who simply can’t absorb or manage further losses”.

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