Goalkeeper handling the ball: Does the opposition need to stand outside of the penalty area in U7’s football season 2024/25.

I’m new to coaching (U7’s season 2024/25), & very much learning on the job (steep learning curve)!

Please can anyone advise me what the rules are regards to when the goalkeeper has the ball in the hands? In yesterday’s match the opposition manager said (not so politely) that when the goalkeeper has the ball in their hands i.e, following a save etc, the other team has to stand outside of the penalty area?

I know that the opposition has to retreat to the half way line for goal kicks. However, I wasn’t aware of the above? I can’t see any reference to this in this season’s handbook:

www.thefa.com/.../mini-soccer-handbook-2024.ashx

Thanks