Nurseries, childminders and pre-schools that charged full fees during lockdown are facing mounting pressure to refund parents after an industry watchdog deemed it unfair to charge fees for services that were not provided.

The Competitions and Markets Authority wrote an open letter to the early years sector this week, warning that they could face legal action from parents for ‘illegal and unfair practices’ during the height of the Covid-19 pandemic.

The watchdog said these included trying to pull at parents’ heartstrings with threats of closure or children losing a place if they didn’t pay during lockdown.

However, two nursery owners have hit back and say that without asking for parent support during lockdown, it would have been a fight to survive.