EDUCATION Secretary Bridget Phillipson called for the competition watchdog to investigate hidden extra charges in government-funded childcare yesterday.

Eligible working parents in England are able to get 30 hours a week of free childcare for children aged between nine months and four years old.

The Department for Education said yesterday that “too many” parents have reported being asked to pay extra to secure a place – including on waiting list deposits, compulsory add-ons or additional hours to access what they are entitled to.

The Competition and Markets Authority will also be asked to examine whether private equity companies operating in the childcare sector are driving up costs, reported the Financial Times.

Ms Phillipson said: “The vast majority of nurseries and childminders have been brilliant in helping us deliver, but I will not accept the small minority letting families down and stopping them get what they were promised.”

But Neil Leitch, chief executive of Early Years Alliance, told BBC Radio 4’s Today programme: “I can’t help feeling this is a bit of a PR exercise to demonstrate that the government’s on the side of parents.

“If it really wants to be on the side of parents, fund the sector adequately.”

He warned: “Just about every single financial institution that’s looked into the costs of early years care and education has said that this sector is grossly underfunded.

“Regardless of the family’s income, socioeconomic status of the child, every child should have the right to care and education.

“But to make that happen, you have to adequately fund the sector.

“And what I find sort of odd at the moment is the government knows that’s not the case.”