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CMA seeks data from smaller childcare providers in market study

CMA seeks data from smaller childcare providers in market study

The Competition and Markets Authority has begun a new evidence-gathering step in its study of early-years education and childcare in England, sending statutory requests for information to a range of smaller providers.

The requests went out on 9 October to providers including nurseries and schools in different parts of England. The competition authority says the exercise is intended to ensure that its assessment reflects providers of different types and sizes, rather than relying only on larger groups or headline market data.

For families, childcare is both an everyday service and a major household cost. The study covers education and care for pre-school children from birth until they start school, typically at four or five. It examines how the sector works, how well it performs for families, professionals and providers, and how outcomes might be improved.

The request is made under statutory powers. That means a recipient is legally required to provide the information sought. The authority has also made clear that providers contacted by email or telephone may verify that a request is genuine. The move should not be read as an allegation against the organisations approached. It is part of the authority’s effort to build an evidence base before reaching any conclusions about the market.

The study began in July and initially invited views from families, professionals, providers and other interested organisations. Those first consultations have now closed. The current phase, scheduled to run until December, combines provider engagement with commissioned research, questionnaires, statutory information requests, market-data analysis and discussion with regulators, local government and sector specialists.

The authority says it will use responses to assess whether the childcare market is working as well as it could and, if not, how it might be improved. It is looking at supply as well as at the experience of users and workers. That framing matters in a sector where availability, provider capacity, price and the practical fit of care can all affect a household’s ability to work, study or manage day-to-day life.

The study is limited to England because childcare funding and regulation differ across the UK. However, the authority says it will seek input from the devolved governments and draw out lessons that may be relevant beyond England. London is therefore included within the core study, alongside areas with very different local provider markets and family needs.

The next public milestone is expected later this year, when the authority plans to publish an update on its emerging thinking after the initial evidence phase. A consultation on possible options for improving outcomes is scheduled for December 2026 to April 2027. The final report is currently expected in May 2027.

That timetable sets an important boundary around the announcement. No remedies have been proposed and no findings have been reached. The 9 October action is a data request, not a ruling on quality, pricing or competition. Its significance lies in the decision to obtain more structured information from smaller providers at a stage when the authority is still testing how the market functions.

By targeting a range of smaller organisations, the regulator is seeking evidence from the part of the sector that can be easily obscured by national averages. The eventual report will depend on the evidence gathered over the coming months, but the latest request marks a concrete step in the examination of a service that shapes the routines and budgets of many families across England.

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