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Hello, my name is Peter, I’ve been asked to look at this for you, thank you for your patience.
Please bear in mind as this is an email service and not live chat I may not respond immediately.
Your grandson will have to apply to court if access is being refused. As you say it was perhaps foolish to pay up front, but there is also a common misconception that contact is related to maintenance payments - it's absolutely not, the two are separate issues legally.
He has to go to mediation first, he will need to contact a local family mediator first before applying and he can do that here: http://www.familymediationcouncil.org.uk
The mediator will do an assessment which is usually around £30 and then recommend a few follow up sessions. They should be able to tell him if he qualifies for legal aid.
If the MIAM does not work he will need to go to court. This will require him to fill out form C100 which can be found here: https://www.gov.uk/government/publications/form-c100-application-under-the-children-act-1989-for-a-child-arrangements-prohibited-steps-specific-issue-section-8-order-or-to-vary-or-discharge
You can find guidance on filling out the application here: https://www.gov.uk/government/publications/family-court-applications-that-involve-children-cb1
Send the original form and 3 copies of it to the nearest court that deals with children, you can find your nearest court here: https://courttribunalfinder.service.gov.uk/search/
The application will cost £215.
He can possibly get a fee exemption if he is on low income/have low savings. He would need to fill out a fee exemption form (http://www.gov.uk/get-help-with-court-fees)
Can I clarify anything for you?