Ofsted has today released its annual report and accounts for the period spanning 1 April 2025 to 31 March 2026, outlining significant changes in its approach to education inspection and heightened efforts to address unregistered provision across the country. The report details the organisation's performance, financial standing, and key developments over the past year.
A major shift in education inspection was implemented in November 2025, with Ofsted replacing single-word summary grades for schools with a new system of 'report cards'. These cards aim to offer a more detailed and nuanced assessment of educational provision, providing parents, carers, and professionals with a clearer understanding of quality. This new framework was preceded by 45 test and pilot inspections, and since its launch, Ofsted has conducted 1,420 inspections of state-funded schools, with 1,380 being full inspections.
The report also highlights strengthened regulation of early years providers. Ofsted risk-assessed approximately 14,800 notifications from around 9,440 early years settings, marking a 24% increase from the previous year. Following concerns, 970 inspections were completed, with 55% of these being unannounced. Since April 2026, inspection frequency has increased, with settings now visited at least every four years, rather than every six, and newly registered settings inspected within 18 months.
Despite an unprecedented surge in applications for children's homes, leading to processing delays, Ofsted remains deeply concerned about the prevalence of unregistered provision. The organisation's investigators identified 710 unregistered children's homes this year, issuing warning letters in most cases. Five criminal investigations were pursued, resulting in two prosecutions. Furthermore, the unregistered schools team opened 260 investigations and conducted 130 inspections of suspected illegal schools, issuing 23 warning notices to 20 settings.
Looking ahead, the Children's Wellbeing and Schools Act 2026 is set to significantly bolster Ofsted's enforcement capabilities against illegal provision. This new legislation will address existing gaps, empowering the inspectorate to investigate and close down unregistered settings more effectively, including the ability to impose fines. A larger investigation team is also being established to support these enhanced powers. Ofsted has also launched a consultation on improving children's social care inspections, proposing that the use of unregistered children's homes be a limiting factor in local authority children's services assessments. The report also noted a growing and more settled workforce, with 215 new inspectors joining and staff turnover falling to 8.6%.