CMA announces broader investigation into childcare to include funding rates, school nurseries and role of local authorities
The Competition and Markets Authority has announced its plans to launch a market study into the early education and childcare sector.
The market study will explore:
- access to high-quality services – the availability of childcare places, how well provision meets different needs and any barriers to entry and expansion for businesses
- affordability and funding – how prices, affordability for families and provider sustainability are shaped by underlying cost drivers for providers and government funding
- information and choice – whether families can access and use information to make effective decisions, and how market practices affect their choices
- the role of local authorities, mayoral combined authorities and other regulatory levers
- impact of provider types – how different provider models and ownership structures affect choice and costs.
The CMA’s analysis will pay particular attention to the role of government policy and public bodies.
Responding to the announcement, NDNA’s Chief Executive Tim McLachlan said, “We welcome the fact that the CMA has listened to NDNA. When the Government wrote to them, we engaged early with them and encouraged them to look beyond the Secretary of State’s request. It is good to see that the review will look specifically at funding and the sustainability of settings on the back of these discussions.
“I welcome the fact that the CMA is considering a broader review that will look at the impact Government policies are having on provider sustainability as well as the families as end consumers.
“Looking at the role of local authorities, it will be important to see areas of good practice highlighted where local authorities can be supportive and compare this with other areas where providers tell us they are making it more difficult for them and for families.
“We know that where nurseries cannot thrive, they cannot offer parents the quality, choice and flexibility they want and need. We want to see a government policy that leads to children flourishing in their early years and providers moving beyond survival mode. This cannot happen when there are elements of the policy that are unfunded and more still that are underfunded.
“The fact that our sector is a foundational element of our economy is being recognised in the review is also very welcome. When we get it right in early years children get the best start possible and families can return to work or increase their hours.
While the CMA is a UK wide body, its market study will focus on England. However, the CMA confirmed that it will consider how findings could be relevant to other parts of the UK.
Tim added: “With expansions planned in Scotland and Wales we hope serious lessons from the review can also be taken away that will help those devolved governments avoid some of the pressures that have been created in England.”
Timeframe for the market study:
How providers and families can be involved:
The CMA has launched three platforms to collect interest from interested groups.
Call for evidence from providers
Call for evidence from families
Call for evidence from other stakeholders
Webinars:
On 15 July from 10:00 to 11:00am the CMA will hold a webinar for anyone interested in the market study and on 16 July from 6:15pm to 7:15pm there will be a specific webinar for providers of early years education and childcare services.
For more information about the webinars and to reserve your place visit:
- England
