The UK's childcare sector has been plunged into uncertainty with the launch of a major market study by the Competition and Markets Authority (CMA). The comprehensive investigation, set to last 11 months, will scrutinise the supply of early years education and childcare services for pre-school aged children in England, sparking hopes for improvement among families and providers.
The CMA's decision to investigate this area aligns with its strategic objective to enhance household prosperity by promoting competition and safeguarding consumers, particularly in essential spending areas and during vulnerable life stages. The study will focus on the supply of services from birth until children start school at four or five years old.
As part of the initial phase, the CMA has published a statement of scope outlining the reasons behind the study, its proposed boundaries, and potential remedies that could emerge. Members of the public are invited to provide feedback on this proposed scope by 26 July 2026, with guiding questions available to assist in formulating responses.
A broader 'call for views' is also underway, seeking first-hand insights from families, early years education and childcare professionals, providers, and other stakeholders. This call will close on the same date as feedback submissions for the statement of scope.
The CMA will host two introductory webinars to facilitate engagement and understanding: one open to anyone interested in the market study (15 July 2026, 10:00-11:00 BST) and a second tailored for providers (16 July 2026, 18:15-19:15 BST). These sessions will explain the study's process and its implications for the sector.
Following engagement, the CMA will move into an evidence gathering and analysis phase from July to December 2026. This will involve commissioned research, expert engagement, information requests, and market data analysis, working closely with government bodies. A public update on emerging findings is anticipated before a consultation on these findings and potential solutions from December 2026 to April 2027, leading to the final report in May 2027.