CMA opens childcare market probe in England

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CMA childcare market probe

Highlights

CMA launched a market study in June 2026 into England’s childcare sector, focusing on affordability, funding, regulatory impact, and access to high-quality services.
The sector comprises over 53,000 providers, 1.6 million early years places, contributes £14 billion annually, and receives £8.91 billion in taxpayer funding for 2025-26.
Private equity-backed provision doubled to 8% of places in 2024, while not-for-profit and partnership places fell 8% and 28%, and childminders declined 39% from 2018 to 2025.

Scope of the England childcare review

As reported by GOV.UK, the Competition and Markets Authority has launched a market study into early years education and childcare services in England after the Education Secretary asked it in May 2026 to consider work in the sector. The authority says its independent assessment and recommendations are intended to support the government’s broader childcare review, while also broadening some areas of analysis to build a stronger evidence base.

The study examines childcare and early years education from birth until children start school, including nurseries, childminders and school-based settings. It is focusing on access to high-quality services, affordability, funding, information available to families, the role of local authorities and other regulatory levers, and how different ownership models affect costs and choice.

The CMA says it will pay particular attention to the role of government policy and public bodies. Depending on the evidence gathered, outcomes could include recommendations on funding and regulation, improvements in information for families and providers, and guidance for businesses or consumers.

Economic pressures and sector changes

Childcare and early years education in England represents more than 53,000 providers and an estimated 1.6 million places for children aged 0-4, with the sector contributing about £14 billion to the economy each year. Government-backed support has also become a larger part of the market, with around £8.91 billion in taxpayer funding spent in 2025-26.

The review begins against a backdrop of shifting provider structures and shrinking parts of the market. UCL found that places offered by private equity providers doubled to account for 8% of places in 2024, while places provided by not-for-profit operators fell 8% and partnership providers declined 28% between 2018 and 2024; the Department for Education also found a 39% drop in childminders between 2018 and 2025.

Sarah Cardell, chief executive of the CMA, says many families are struggling to find affordable childcare close to home while providers are also under pressure. The authority has opened a call for views from families, education and childcare providers, and other groups, and provisional findings are expected by early 2027.

Our earlier article covered the Competition and Markets Authority’s in-depth phase 2 review of Nexfibre’s proposed £2bn takeover of Netomnia, a deal that could reshape competition in the UK fibre broadband market. We noted the CMA’s concerns about reduced rivalry where Virgin Media O2 and Netomnia networks overlap, and how the extended investigation timeline could slow wider consolidation in a debt-laden, fragmented sector.

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