The UK’s Competition and Markets Authority (CMA) has agreed to look into the childcare sector following a formal request from the Secretary of State for Education, Bridget Phillipson.
In a response letter penned by CMA Chief Executive Sarah Cardell, the antitrust watchdog confirmed it will develop a specific proposal for its Board to review next month. The move comes as the government undergoes policy development in the childcare sector, a critical moment where independent advice and market analysis could heavily influence future state spending and regulation.
The CMA has already been monitoring developments in the childcare industry for some time. This upcoming review aligns with the regulator’s broader strategy to tackle long-term affordability issues in essential household markets, having recently intervened in sectors such as road fuel, infant formula, dentistry, and veterinary services.
By evaluating how competition is functioning among childcare providers, the CMA aims to help the government deploy effective interventions that protect consumers and alleviate cost-of-living pressures for families. The regulator will work closely with the Department for Education, utilizing government resources and industry expertise to shape the scope of the investigation.
