Bridget Phillipson, Secretary of State for Education, has today (26 May 2026) written to the independent Competition and Markets Authority (CMA) requesting a review of the English early years childcare market. This review would form part of the wider Government Childcare Review announced in the Autumn Budget 2025. 

The CMA is being asked to examine three key areas: 

• Market practices affecting parents and providers, such as private paid hours and fees, restrictions on funded hours, consumables charges, and waiting list deposits;  

• Supply side dynamics, including accessibility in cold spot areas, cross-subsidy dynamics and the role these play in provider sustainability and growth, and the role of different provider types;  

• How the demand side is able to drive positive outcomes in the market, including for children with a range of characteristics such as age, SEND and disadvantage, the role of local authorities and mayoral combined authorities in market management, and the transparency of information available to parents to inform their choices. 

 In her letter, the Education Secretary asked for a final report from the CMA “by Spring 2027”. The CMA since responded to the Education Secretary’s letter confirming that they are delivering a proposal to the Board next month and will update following that decision.  

Ka Lai Brightley Hodges, Head of Coram PACEY comments: 

“The Government’s review of access to early education and childcare is welcome, as supporting families to access affordable, high-quality childcare is essential to giving children the best start in life. Access remains uneven, with many disadvantaged children and families still unfairly missing out on high-quality provision.

“The vast majority of providers want to support families and deliver accessible, high-quality childcare. However, additional charges are often unavoidable because the current funding system does not cover the true cost of delivering places – particularly the three- and four-year-old funding rate, which remains significantly below delivery costs.

“Any review should fully examine the impact of this underfunding on providers, accessibility and parental costs. This is especially important for childminders, who are disproportionately affected due to the ratios they work within. Many face a financial cliff edge when a funded two-year-old turns three and rates drop dramatically, forcing difficult business decisions such as increasing privately paid fees, reducing funded places or limiting capacity.

“Ambitious reform of the funding system is needed to ensure providers can continue delivering the high-quality childcare that children and families rely on, while also ensuring fair and sustainable access for all.”

Read Coram PACEY’s research (November 2025) on the impact of funding rates on childminders.

New cost of living online childcare tool 

The Government is also launching a new cost of living childcare tool to help families find and estimate childcare support more easily. This includes an eligibility checker and childcare cost estimator to launch nationally in May 2026, alongside an AI-powered GOV.UK chat tool for parents to access information and ask questions about support available for them.  

A trial childcare map is also being introduced as a regional pilot in Bristol, South Gloucestershire, Bath and North East Somerset, before being rolled out nationally later this year. The map will help parents find funded childcare places nearby, access information about local providers and connect with them more easily.  

Coram PACEY is working with the Department for Education to help ensure childminders are fairly represented within the new digital tool, where they have consented to share their information. This is important to ensure parents can fully consider childminders as an option for their child and access clear information about the range of childcare providers available in their local area. We look forward to sharing more on this soon.