Latest provider survey shows importance of PVI providers
New figures from the government’s 2025 Childcare and Early Years Providers Survey show how significant private, voluntary and independent (PVI) nurseries are in delivering early education and care places for children and families. The report also reveals continued pressures on staffing and sustainability across the sector.
Headline findings
- 1.1 million children are now registered with PVI nurseries, the largest share of any setting in the sector
- The workforce has grown by 600 staff, far below the estimated numbers that the government expected would be needed for the expansion
- The number of childminders continues to fall, 1,100 fewer since 2024 and a loss of 14,000 since 2018.
Tim McLachlan, Chief Executive of NDNA, said:
“The latest data from the Government highlights the critical role that private, voluntary and independent (PVI) nurseries play in giving children the best start in life. As the majority of the sector, over 1.1 million children are now registered with these settings.
“The estimated workforce growth over the past year appears to be well below the Government’s targets and reflects our findings that 70% of nurseries could offer more places if they could recruit enough staff. This is why recruitment and retention needs to be a real focus of the Government’s new strategy.
“In the Budget, the Chancellor again prioritised drinks and dinner over children’s early learning by supporting pubs and restaurants but not early education for business rates relief. Today’s data shows that these burdens are 2% of a nurseries overall costs. Bringing nurseries into line with the rest of the early years sector would unleash savings that could be invested in improved environments, staff training or lower fee increases for parents.
“Rising costs like national insurance contributions and increases to statutory wages must be reflected in funding rates the Government is due to publish soon. This is the only way to ensure sustainability and high-quality provision.
“If nurseries cannot remain sustainable, these pressures risk undermining the Government’s ambitious aim to improve outcomes for all children in early years.”
Key insights from the survey:
PVI nurseries are the backbone of provision
- PVI settings remain the largest provider type in the most deprived areas, making up 37% of all providers
- They deliver most registered places for younger children, nearly half of all under-3s attend a PVI nursery.
Longer hours and more flexibility
- Childminders and private nurseries open for around 10 hours per day, compared with 7 hours for school-based providers
- PVIs are far more likely to offer year-round access and flexible use of funded hours
Workforce pressures remain a major challenge
- PVIs are training the future workforce: 66% employ apprentices, far higher than other provider types
- However, turnover remains high and qualifications levels vary, adding pressure as more children become eligible for funded places.
Costs continue to rise
- Staffing makes up 78% of PVI nursery costs
- Business rates alone account for 2% of costs, meaning that government funding is partly being paid back through tax
- Rising National Insurance and wage costs add additional pressure unless future funding rates reflect the increases.
Support for children with SEND is growing
- 90% of PVI nurseries care for at least one child with SEND, more than ever before
- They support an average of six children with SEND per setting.
Childminders continue to fall
- Numbers have dropped sharply over the last decade reducing choices for parents needing home based flexible care.
You can look at the full survey findings here.
- England
- childcare
- Department for Education
- early education
- early years
- England
- NDNA
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