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<p>The Competition and Markets Authority issued an open letter on 28 July 2020, followed
by detailed advice to the sector, following complaints from parents about allegedly
unfair charging practices during early days of the COVID-19 outbreak. These are available
here: <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/904194/Open_letter_to_Nursery_and_Early_Years__settings.pdf"
target="_blank">https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/904194/Open_letter_to_Nursery_and_Early_Years__settings.pdf</a>
and <a href="https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fpublications%2Fnursery-and-early-years-sector-covid-19-restrictions-and-consumer-law%2Fnursery-and-early-years-sector-covid-19-restrictions-and-consumer-law-advice&data=04%7C01%7CCraig.McClue%40cma.gov.uk%7C13f076f944ec466e247908d89b80c830%7C1948f2d40bc24c5e8c34caac9d736834%7C1%7C0%7C637430324728268280%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=9en2gwX9WZOMNHfFhbXioDVoJg1XujuKtWgAahheiVM%3D&reserved=0"
target="_blank">https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fpublications%2Fnursery-and-early-years-sector-covid-19-restrictions-and-consumer-law%2Fnursery-and-early-years-sector-covid-19-restrictions-and-consumer-law-advice&data=04%7C01%7CCraig.McClue%40cma.gov.uk%7C13f076f944ec466e247908d89b80c830%7C1948f2d40bc24c5e8c34caac9d736834%7C1%7C0%7C637430324728268280%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=9en2gwX9WZOMNHfFhbXioDVoJg1XujuKtWgAahheiVM%3D&reserved=0</a>.</p><p>The
letter supported the government’s position that providers must be balanced and fair
in their dealings with parents, and that they must avoid unfair charging practices.
While contracts are a private arrangement between consumers and providers, the provisions
of the letter are still broadly applicable. If parents or their children test positive
for COVID-19, or are contacted by NHS Test and Trace, the principle that parents should
not be charged for a service that cannot be provided without breaching government
legal requirements would apply. We ask that providers continue to be fair and balanced
in dealings with parents and must continue to avoid unfair charging practices.</p><p>An
early years provider can access the Coronavirus Job Retention Scheme to cover up to
the proportion of its salary bill which could be considered to have been paid for
from that provider’s private income. This would typically be income received from
‘parent-paid’ hours that have not yet returned because of COVID-19, and excludes all
income from the government’s free entitlements. Providers should use the month of
February 2020 to represent their usual income, in calculating the proportion of its
salary bill eligible to be covered by the scheme, taking into account parent-paid
income that has returned. Providers should adjust these proportions in subsequent
furloughing applications if their income from the governments free entitlements changes.</p>
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