Hidden fees, complex rules and staff who will not stay: what the childcare inquiry has heard so far
What happened
The Competition and Markets Authority published an update on 25 September 2026 on its market study into early years education and childcare in England. The study launched on 1 July 2026, after the Secretary of State for Education asked the CMA to look at the market. A market study is a broad examination of how a whole sector works, rather than an investigation into one company. The update does something specific: it sets out what the CMA has heard so far, confirms what the study will cover, and says which issues it will now examine more closely. It does not present findings or conclusions. The CMA is explicit about this. Its evidence gathering and analysis are still under way. Alongside the update, the CMA published the responses it received to its statement of scope. Those came from a wide range of organisations, including individual nurseries and childminders, large chains, the Early Years Alliance, the National Union of Childminders, teaching unions, local councils, Ofsted and the Local Government and Social Care Ombudsman. The timetable from here is clear. An interim report is expected in December 2026, setting out interim findings and emerging thinking. A final report is due in May 2027, with a statutory deadline of 30 June 2027.
Why this matters
Childcare is one of the biggest bills a young family pays, and for many it is the thing that decides whether a parent can work at all. It is also unusual as a market. Parents choose a setting, but a large part of the money comes from government funding schemes. Councils administer much of it. Ofsted regulates it. So the ordinary signals that make a market work, price and choice, are heavily muffled. That combination is exactly why a competition authority is looking at it. The five areas the study covers are: access to high-quality services; affordability and funding; information and consumer choice; the role of public bodies; and cost drivers and the impact of different provider types. One of the CMA's early observations is that these cannot be pulled apart. As the update puts it, access, affordability and quality "could not be considered in isolation", with significant interaction between funding arrangements, workforce pressures, regulation, local authority administration and provider sustainability. In plain terms: if staff wages are too low to keep people, quality falls. If funding does not cover costs, settings close. If settings close, there is less choice. It is one problem wearing several hats.
What the evidence actually says
The update is a summary of what people said, not a set of proven findings, and it should be read that way. Families told the CMA that childcare needs to be affordable, available and suitable for their circumstances. They highlighted quality, location and flexibility. Some described real difficulty finding places at the times or in the areas they needed. They also raised concerns about high overall costs, additional charges on top, complex eligibility rules for government support, and a lack of clarity about what extra fees and charges actually are. Providers raised a different set of issues: the level and structure of funding, workforce pressures and administrative requirements. They described struggling to recruit and keep staff, meeting rising costs, and supporting children with special educational needs and disabilities. Different provider types have different strengths and different problems, the CMA heard. Many respondents noted the decline in the number of independent childminders. On public bodies, stakeholders raised questions about how funding, regulation and local authority administration fit together, and pointed to variation between local authorities. None of this is a verdict. It is a record of what a wide range of people said when asked.
Practical advice
If you are paying for childcare now, here is what is worth doing. Ask any setting for a full written breakdown of charges before you sign. Not just the hourly rate: consumables, meals, nappies, trips, late collection fees, and anything charged during funded hours. Unclear extra charges were one of the clearest themes families raised. Check what government support you are entitled to. The Childcare Choices website is the official starting point and covers funded hours and Tax-Free Childcare. Eligibility rules are genuinely complicated, and people miss out. Reconfirm your eligibility when it is due. Some schemes require you to reconfirm regularly, and support can stop if you forget. Ask about staff turnover when you visit a setting. A settled team matters more to a young child than a smart building. Check the most recent Ofsted report, and read the actual text rather than just the grade. If you have had a difficult experience, or a good one, you can still feed into the CMA study. There are open channels for families, providers and other interested people on the CMA's case pages, and the interim report is not until December 2026. If a dispute with a council about funded hours cannot be resolved, the Local Government and Social Care Ombudsman can look at it.
What to know
The CMA published an update on its early years education and childcare market study in England on 25 September 2026. The update summarises what the CMA has heard, confirms the scope of the study, and states clearly that it does not present findings or conclusions. Families raised affordability, availability, unclear additional charges and complex eligibility rules. Providers raised funding levels, recruiting and retaining staff, rising costs and supporting children with SEND. The CMA notes that access, affordability and quality are tightly connected and cannot be treated separately. An interim report is expected in December 2026 and a final report in May 2027, with a statutory deadline of 30 June 2027. Sources: Competition and Markets Authority (GOV.UK), "Early years education and childcare market study", update published 25 September 2026, https://www.gov.uk/cma-cases/early-years-education-and-childcare-market-study; Competition and Markets Authority, "Early years education and childcare market study: Update", 25 September 2026, https://assets.publishing.service.gov.uk/media/6ab6544b997a4b2950ccef26/25.09_CMA_Childcare_MS_Update_v4.pdf; GOV.UK, "Childcare Choices", accessed 26 September 2026, https://www.childcarechoices.gov.uk/. This article is for general information. It is not medical advice, and it does not replace guidance from a doctor, health visitor, pharmacist or other qualified healthcare professional on any health matter.
Related articles
Mondays, Wednesdays and Fridays: the hub that opened at a football ground
On 12 October 2026, the Department for Work and Pensions announced that a new Youth Hub had opened in Exeter. The hub is for people aged 16 to 24. It is at St…
A 'veneer of progress'? The youth justice chief answers her critics
On 12 October 2026, the chief executive of the Youth Justice Board for England and Wales published an article defending the approach that now shapes how the sys…
Three years of missing accounts, and two trustees on the register
On 12 October 2026, the Charity Commission announced that it has opened a statutory inquiry into an education charity called Crossfields Institute. The charity…