Competition watchdog opens review of childcare market in England

The Competition and Markets Authority (CMA) has launched a market study into early years education and childcare in England.

The CMA said it will assess whether the sector is working well for families, providers and the wider economy. It covers children from birth until they start school.

That includes nurseries, childminders and school-based settings. Nannies and other informal childcare are not included, and the CMA will not assess educational standards, which are for Ofsted.

The study sits alongside the government's review of childcare provision in England. In May 2026, the Education Secretary asked the CMA to consider work in this area to inform that review.

What the CMA will look at

• Access to high-quality services, including the availability of places and any barriers for businesses that want to open or expand
• Affordability and funding, including how prices and provider sustainability are shaped by providers' costs and government funding
• Information and choice, and whether families can use information to make effective decisions
• The role of local authorities, mayoral combined authorities and other regulatory levers
• How different provider models and ownership structures affect choice and costs

The CMA said it will pay particular attention to the role of government policy and public bodies.

According to the CMA, there are over 53,000 childcare providers in England, with an estimated 1.6 million places. It said around £8.91 billion of taxpayer funds was spent on government-funded support in 2025 to 2026.

The CMA also pointed to Department for Education figures showing a 39% decline in childminders between 2018 and 2025.

What happens next

The CMA has opened a call for views for families, childcare professionals and providers, and other interested people. It closes on 26 July 2026.

Any outcomes will depend on the evidence gathered. The CMA said they could include recommendations to government on funding and regulation, better information for families and providers, or guidance for businesses or consumers.

Provisional findings are expected by early 2027. The CMA expects to publish its final report in May 2027, ahead of a statutory deadline of 30 June 2027.