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The Competition and Markets Authority (CMA) is preparing proposals for a potential independent review of the English early years childcare market after receiving a formal request from the Secretary of State for Education, Bridget Phillipson.
In a response letter dated 26 May 2026, Sarah Cardell, SMA's Chief Executive, confirmed that the regulator had been monitoring developments in the childcare sector and was considering further work in the area prior to the government’s request.
Cardell said the CMA would now develop “a specific proposal” for consideration by its Board next month, with a further update to follow after those discussions.
The correspondence suggests growing government interest in the structure and competitiveness of the childcare sector amid continuing concerns over affordability, market sustainability and access to provision.
In her response, Cardell emphasised the CMA’s broader strategic focus on essential consumer markets, citing previous work relating to sectors including road fuel, infant formula, dentistry and veterinary services.
She noted that the regulator had increased its focus on acting “as an enabler of competition” through advice and recommendations to government, particularly in markets where public policy and state funding play a significant role in shaping provision.
The proposed review would come at a time of continuing pressure on the early years sector, including rising operating costs, workforce recruitment challenges and increased demand linked to the expansion of funded childcare entitlements.
Cardell also indicated that the Department for Education had offered access to government resources and expertise to support any future CMA work in the sector.
The potential review is likely to examine how competition, funding structures and market conditions affect the availability, affordability and quality of childcare provision across England.
To read CMA's response in full, click here.
