The Competition and Markets Authority (CMA) has launched an investigation into the affordability and availability of childcare in England, expressing concerns that "too many families are struggling" with the current system.
Scope of the Investigation
The CMA's review will examine the challenges families face in finding suitable childcare, as well as the pressures on providers in England. The study covers early years education and childcare from birth until children start school, including nurseries, childminders, and school-based settings.
The investigation will look at the availability of childcare places, affordability for families, and the costs faced by providers alongside government funding. It will also consider whether families can make effective decisions about choosing a place for their child and how market practices affect these choices.
Key Statistics
There are more than 53,000 childcare providers in England for children aged up to four, offering an estimated 1.6 million places. The sector is worth approximately £14 billion to the economy annually, according to the CMA. Government-funded support plays a major role, with around £8.91 billion of taxpayer funds spent over the last year.
Market Trends
Research from University College London found that places offered by private equity providers have doubled, accounting for 8% of places in 2024. Meanwhile, there has been an 8% decrease in places by not-for-profit providers and a 28% reduction in places by partnership providers between 2018 and 2024. The Department for Education also reported a 39% decline in childminders between 2018 and 2025.
CMA Statement
CMA chief executive Sarah Cardell said: "Early years education and childcare is a lifeline for many families, helping children get the best start in life and enabling parents to go out to work. We know how important it is to find affordable providers close to home that parents can trust. But too many families are struggling to find the right place at an affordable price, with providers also under real pressure. We're going to take a close look at where change may be needed as part of our commitment to support economic growth and household prosperity, so the system works well for families and providers alike."
