The system is so complicated that many parents do not access their full entitlement to free childcare

Nursery fees have risen at twice the rate of inflation after government subsidies pushed up prices, a study has found.

Working parents of children aged three and four can benefit from 30 hours’ free care a week but the policy has driven up charges for additional hours and places for younger children, the charity Coram Family and Childcare said.

Many nurseries have complained that the government pays them rates that do not cover their costs and have raised fees for additional hours, younger children and extras such as lunches.

The cost of a full-time nursery place for a child under two rose by 4 per cent last year to an average of £252.07 a week, or £13,100 a year, across England, Scotland and Wales. In