UK parents struggling to find affordable childcare, watchdog warns
Key Points
- CMA launched a childcare market study in England on 1 July 2026.
- England has 53,000+ providers and 1.6 million places for ages 0-4.
- Sector worth £14 billion a year; £8.91 billion in taxpayer funding in 2025-26.
- Private equity's share of places doubled to 8% in 2024.
- Childminder numbers fell 39% between 2018 and 2025.
- Provisional findings expected by early 2027.
The competition regulator has launched a market study into England’s childcare sector after warning that too many families cannot find affordable places close to home.
The Competition and Markets Authority (CMA) opened the review on Wednesday (1 July), examining early years education and childcare from birth until children start school.
The study covers nurseries, childminders and school-based settings, and will assess whether the sector is working for families, providers and the wider economy.
England has more than 53,000 childcare providers delivering an estimated 1.6 million places for children aged 0 to 4, according to Department for Education figures. The sector is worth around £14 billion to the economy each year, with roughly £8.91 billion of taxpayer funds spent on government-funded support in 2025-26.
Sarah Cardell, Chief Executive of the CMA, said families were being squeezed on both cost and availability.
“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,” she said.
“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.”
What the study will examine
The review will look at access to high-quality places and barriers to entry for providers, affordability and funding, and whether families can access clear information to make choices.
It will also assess the role of local authorities and mayoral combined authorities, and how different ownership models affect choice and cost. The CMA said its analysis would pay particular attention to the role of government policy and public bodies.
Research from UCL found the share of places offered by private equity providers doubled to 8% in 2024, while not-for-profit provision fell 8% and partnership providers cut places by 28% between 2018 and 2024.
The Department for Education recorded a 39% decline in childminders over a similar period, with numbers dropping from 36,500 to 22,300 between 2018 and 2025.
The study follows a request from the Education Secretary in May 2026 for the CMA to inform the government’s wider review of childcare provision. Early years policy is devolved, so the study focuses on England, though the CMA said it would consider how its findings could apply elsewhere in the UK.
The regulator has opened a call for views inviting input from families, providers and other groups. It will exclude nannies and other informal childcare, and will not assess educational standards, which remain the responsibility of Ofsted. Provisional findings are expected by early 2027.
