The Children's Minister has ordered a review of the case of two police officers told they had broken the law by caring for each other's children.
Ofsted said the arrangement contravened the Childcare Act because it lasted for longer than two hours a day, and constituted receiving "a reward".
It said the women would have to be registered as childminders.
Ms Shepherd, who serves with Thames Valley Police, recalled: "A lady came to the front door and she identified herself as being from Ofsted. She said a complaint had been made that I was illegally childminding.
"I was just shocked - I thought they were a bit confused about the arrangement between us.
"So I invited her in and told her situation - the arrangement between Lucy and I - and I was shocked when she told me I was breaking the law."
Ms Jarrett added: "Our children were never in any harm, they were never in any danger.
To think that they would waste their time and effort on innocent people who are trying to provide for their families by returning to the workplace... Surely their time and effort would be better placed elsewhere."
"They've been threatened with prosecution by Ofsted if they continue doing this."