Competition watchdog study into early years education and childcare services in England to explore role of councils

The study sits alongside the UK government’s review of childcare provision in England. In May 2026, the Education Secretary asked the CMA to consider undertaking work in this area, so that its independent assessment and recommendations could inform that review.

According to the CMA, the review will consider early years education and childcare from birth until children start school, including services provided by nurseries, childminders and in school-based settings.

The market study will explore:  

• access to high-quality services - the availability of childcare places, how well provision meets different needs and any barriers to entry and expansion for businesses;
• affordability and funding - how prices, affordability for families and provider sustainability are shaped by underlying cost drivers for providers and government funding;
• information and choice - whether families can access and use information to make effective decisions, and how market practices affect their choices;
• impact of provider types - how different provider models and ownership structures affect choice and costs.

The CMA’s analysis will pay particular attention to the role of government policy and public bodies. Where appropriate, it said it will make recommendations that could drive improved outcomes.

Sarah Cardell, Chief Executive of the CMA, 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.”

The CMA has launched a call for views and is inviting input from families, education and childcare providers, and other interested people to help inform its work. Provisional findings are expected to be published by early 2027.

Lottie Winson