Birmingham City Council (25 012 024)

Category : Education > Other

Decision : Closed after initial enquiries

Decision date : 21 Jan 2026

The Ombudsman's final decision:

Summary: We will not investigate Mr X’s complaint about Free Early Education Entitlement payments the Council made to his child’s nursery. There is insufficient evidence of fault to warrant our involvement.

The complaint

  1. Mr X complained the Council failed to intervene regarding differences in the rate his child’s nursery receives from the Council for Free Early Education Entitlement compared with fee-paying individuals.
  2. Mr X said the matter caused him financial loss.

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The Ombudsman’s role and powers

  1. We investigate complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start or continue an investigation if we decide there is not enough evidence of fault to justify investigating. (Local Government Act 1974, section 24A(6), as amended, section 34(B))

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How I considered this complaint

  1. I considered information provided by the complainant.
  2. I considered the Ombudsman’s Assessment Code.

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My assessment

  1. Mr X has a child, Y, who receives free nursery hours as a part of the Free Early Education Entitlement. Mr X also pays for additional hours at the nursery.
  2. Mr X complained to the Council that the money the nursery receives from it for the free hours is higher per hour than what the nursery charges for people paying privately for its services. In Mr X’s view, the nursery should use the difference between the amount it receives from the Council for free hours compared to the hourly rate it charges to private individuals to reduce his costs for fee-paid hours.
  3. In response, the Council conducted an audit of the nursery. It checked the amount the nursery charged and how it administers the free hours. It found no discrepancies.

Analysis

  1. We will not investigate Mr X’s complaint. The Council pays the nursery for free hours. The nursery must then provide the hours free of charge to users (with exceptions for items such as consumables).
  2. It is a determination for the Council to make about the rate it pays nurseries for the free hours. If the Council chooses to pay a higher rate to secure the free hours, it can do so. If it chooses to pay a lower hourly rate than a nursery’s standard charges, the nursery must not charge parents a “top-up” fee.
  3. In this case, the nursery receives a slightly higher payment from the Council per hour. Mr X is not charged more. He receives free hours per his entitlement.
  4. The Council followed the correct process by checking how the nursery administers its free hours. There is insufficient evidence of fault in the Council’s actions to warrant an investigation, and so we will not investigate this complaint.

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Final decision

  1. We will not investigate Mr X’s complaint because there is insufficient evidence of fault.

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Investigator's decision on behalf of the Ombudsman

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