More than a quarter of families pay for nursery places that should be free under the Government’s early years education programme.

All children aged 3 to 4 are entitled to 12½ hours of free education at private, voluntary or state nurseries. But a nationwide study by the National Centre for Social Research found that 28 per cent of parents had been forced to pay top-up fees to make use of the “free” entitlement. The Daycare Trust, which commissioned the research, said that the top-up fees – usually a few pounds per half-day session – undermined the scheme and put off poorer families.

The Government has promised to stamp out the practice, but many nurseries claim that the scheme is so inadequately funded they have to charge the top-up fee.

The problem is particularly pressing in southeast England, where rent and wages are highest. Funding for the scheme comes from local authorities through the Government’s direct schools grant. But the funding is not ring-fenced, and local authorities offer different levels of subsidy, from £3.06 an hour in the North West to £3.26 an hour in the Home Counties.

Some nurseries are trying to get round the rules by making the 12½ hours free, then charging £1.50 for “snacks” to try to meet the cost.

Emma Knights, joint-chief executive of the Daycare Trust, said that the situation was absurd. “On the one hand, we know that the children most likely to miss out on their free nursery place are poor children. On the other, we know that a quarter of parents whose children take up their free place are being charged fees,” she said.

A government spokeswoman said that an independent survey found that enough money had been allocated for the scheme and concluded that some local authorities needed to improve their distribution mechanisms.

Purnima Tanuku, chief executive of the National Day Nurseries Association, predicted that the problem would worsen in 2010, when the Government is to increase the number of free hours to 15.

Times Recommends

• Phoebe Caldwell wins Times/Sternberg Award
• Raging against fake pop has its own pitfalls
• How a voice for everyone led to stalemate