The UK’s Competition and Markets Authority has officially opened a market study into early years education and childcare services across England to determine whether the sector is properly serving families and supporting providers. The review covers early education and care from birth until a child starts school, encompassing nurseries, childminders, and school-based settings. The inquiry aligns with a parallel government review of childcare provision initiated after the Education Secretary requested the watchdog’s independent assessment. While early years policy is decentralized across the UK, this specific study focuses on England while analyzing how findings might apply to other regions.
The investigation targets several core operational aspects of the industry, including the overall availability of places and potential barriers preventing new childcare businesses from expanding. It will also examine the relationship between underlying business costs, government funding models, and the final prices paid by families. Furthermore, the CMA plans to analyze whether parents can access transparent information to make effective choices, the role of local regulatory levers, and how different corporate ownership models affect consumer costs.
The financial stakes are profound, with England’s childcare sector valued at roughly £14 billion annually, supporting 1.6 million places across more than 53,000 providers. Taxpayer investment has surged concurrently, with expanded public funding programs accounting for approximately £8.91 billion of state spending. Recent data underscores massive structural shifts that have forced the regulator’s attention. Research from University College London highlights that childcare places managed by private equity firms doubled by 2024 to secure an 8% market share, while non-profit placements dropped by 8% and partnership-based facilities plunged by 28%. Simultaneously, the number of individual childminders fell by 39% between 2018 and 2025.
CMA Chief Executive Sarah Cardell noted that reliable childcare serves as an essential economic lifeline for working families, yet too many parents currently struggle with high costs and restricted availability while providers face severe operational strains. The regulator has opened a public call for evidence, seeking direct feedback from families, educators, and industry groups to inform its work. While educational quality standards will remain under the sole jurisdiction of Ofsted, the CMA intends to publish its provisional market findings and structural recommendations by early 2027.
