Competition watchdog confirms focus of its childcare market study

The Competition and Markets Authority (CMA) has published an update on its market study into early years education and childcare in England.

The CMA launched the study on 1 July 2026. It says this update does not set out findings or conclusions, as its evidence gathering is still under way.

Five areas of focus

The CMA confirmed it will continue to focus on five areas:

• access to high-quality services
• affordability and funding
• information and consumer choice
• the role of public bodies
• cost drivers and the impact of different provider types

It is looking at whether government funding, self-pay hours and other charges align with providers' costs, and whether this affects providers' viability.

It is also considering whether information on prices, funded hours, additional charges, opening hours and quality is clear, reliable and comparable for families.

It is also looking at whether contract terms affect families' ability to compare providers or switch.

What it has heard

The CMA's call for views drew responses from 878 families, 977 providers and professionals, and 40 other interested people.

Providers raised the level and structure of funding, workforce pressures and administrative requirements. Many also noted the decline in the number of independent childminders.

Families raised concerns about high overall costs, additional charges, complex eligibility rules and unclear information about extra fees.

The CMA has used formal notices to require information from over 20 of the largest private, voluntary and independent (PVI) providers. It has also sent questionnaires to a sample of other providers, including childminders.

What happens next

The CMA plans roundtables with stakeholders in October and November 2026. It expects to publish an interim report in December 2026 and will seek views on it.

In December it will also set out its provisional view on whether to make a market investigation reference, which is a more in-depth assessment. Its final report is expected in May 2027.

The study will keep its focus on funded and regulated childcare, such as PVI nurseries, childminders and school-based nurseries, rather than nannies.