Nurseries have just been sent letters they are legally required to answer
What happened
On 9 October 2026 the Competition and Markets Authority took a significant step in its investigation into childcare in England. It sent formal information requests to a number of smaller providers, including nurseries and schools. These are not polite enquiries. The CMA says they are made under its statutory powers, and that a response is legally required. The requests are part of a market study the CMA launched on 1 July 2026, looking at early years education and childcare in England for children from birth until they start school at age four or five. The study is expected to take 11 months in total. A market study is the competition watchdog examining how a whole sector works, rather than investigating one company. The CMA is looking at how well the sector serves families, professionals and providers, and how it could work better. The timetable so far has been: introductory webinars in July 2026; a deadline of 26 July for responses on the study's scope and for the public call for views, both now closed; a public update in September 2026; and evidence gathering and analysis running from July to December 2026. What comes next is the part parents should diarise. From December 2026 to April 2027 the CMA will consult on its emerging thinking and possible remedies. The final report is expected in May 2027. The CMA says these dates may be updated. The study covers England only, because funding and regulation differ across the UK. The CMA says it plans to share what it learns with the devolved governments.
Why this matters
For a lot of families, childcare is the biggest bill after the mortgage or rent. For some parents, mostly mothers, it is the reason they work fewer hours than they would like, or do not go back to work at all. The CMA is not looking at this by accident. The study sits within its 2026 to 2029 strategy, which aims to improve household prosperity with a focus on essential spending and what it calls vulnerable moments. Having a baby is exactly such a moment: your costs rise and your income usually falls at the same time. The reason this step matters more than the earlier ones is that the CMA has moved from asking to compelling. A call for views collects whatever people choose to send. A statutory information request gets actual data out of actual businesses, including the smaller ones that are easy to overlook. That last point is worth noting. Much of the public debate about childcare focuses on large nursery chains. But a great deal of early years provision in England comes from single-site nurseries, pre-schools attached to schools, and small independent settings. If the CMA only heard from the big players, it would get a partial picture. Going to the smaller providers suggests it wants the whole one. For providers, this is a workload at a difficult time. For parents, it is the best chance in years of getting an independent, evidence-based account of why childcare costs what it does.
What the evidence actually says
It is important to be clear about what the CMA has and has not concluded. It has not published findings. There are no CMA figures yet on childcare costs, prices, provider numbers or market size. The guidance page updated on 9 October 2026 sets out the process and the timetable, not conclusions. Anyone quoting a CMA verdict on childcare today is quoting something that does not exist. A market study also is not an enforcement case. The CMA is not currently accusing anyone of breaking competition law. At the end of a market study it can recommend changes to government, propose remedies, or decide to open a fuller market investigation. It covers England only. If you are in Scotland, Wales or Northern Ireland, this study does not examine your system, though the CMA says it will share lessons. One practical note for providers, because this is already being used by scammers in other contexts. The CMA explicitly states that an information request received by email or phone is legitimate. If you have received one and are unsure, do not simply ignore it. Query it directly with the CMA at [email protected], which is the address the CMA itself gives for questions about a specific request. And the general contact for the study is [email protected].
Practical advice
If you are a parent or carer, the call for views has closed, but you have not missed your chance. Sign up to the CMA's mailing list for the study now. The consultation on emerging thinking and possible remedies runs from December 2026 to April 2027, and that is when the CMA expects to invite comment. Diarise it. Consultations are usually won by whoever actually turns up. In the meantime, check what you are entitled to. Government-funded childcare hours, Tax-Free Childcare, and childcare support through Universal Credit all exist and all go unclaimed by families who qualify. The Childcare Choices service sets out which you can use, and some can be combined. Ask your setting for a written breakdown of charges. Funded hours are often offered alongside charges for meals, nappies or extra sessions, and those charges vary a lot. You are entitled to understand what you are paying for. If you run a nursery or pre-school and you have received a request, respond within the deadline and keep a copy of what you send. If complying is genuinely difficult, contact the CMA early rather than missing the date. You can also ask to take part in the industry roundtables and meetings the CMA is running. And if you are an employer, this is a reasonable moment to look at whether your own policies help staff with young children stay in work.
What to know
The Competition and Markets Authority has sent statutory information requests to a number of smaller childcare providers in England, including nurseries and schools, as part of its market study into early years education and childcare. The requests went out on 9 October 2026 and a response is legally required. The study began on 1 July 2026, covers England only, and is expected to last 11 months. Evidence gathering runs to December 2026, a consultation on emerging thinking and possible remedies runs from December 2026 to April 2027, and the final report is expected in May 2027. No findings have been published yet. There are no CMA figures on childcare costs or market size at this stage. Parents should join the mailing list and plan to respond to the consultation from December. In the meantime, check Childcare Choices for funded hours and other support you may be missing. Sources: Competition and Markets Authority, 'How to engage with the CMA's childcare market study', updated 9 October 2026, https://www.gov.uk/guidance/how-to-engage-with-the-cmas-childcare-market-study; Competition and Markets Authority, official organisation page, accessed 10 October 2026, https://www.gov.uk/government/organisations/competition-and-markets-authority; Department for Education, 'Expansion to early childcare entitlements: Childcare Experiences Survey', 1 September 2026, https://explore-education-statistics.service.gov.uk/find-statistics/expansion-to-early-childcare-entitlements-childcare-experiences-survey This article is for general information. Where it touches on health or medicines, it does not replace advice from a doctor, pharmacist or other qualified healthcare professional.
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