Policy
Early Years Voice urges CMA to investigate adequacy of Government childcare funding rates
Published June 3, 2026
Campaign group Early Years Voice (EYV) has written to the chief executive of the Competition and Markets Authority (CMA), urging a comprehensive investigation into childcare charges and funding adequacy. The group is calling for a 'full market' study that specifically examines whether the Government's hourly funded rate for early years provision is sufficient, rather than the limited review originally commissioned by ministers.
This intervention highlights growing concerns across the sector about the disconnect between the rates local authorities receive to fund free childcare hours and the actual costs providers face delivering high-quality early education. If the CMA agrees to expand its remit, the investigation could expose systemic underfunding issues that threaten the sustainability of nurseries and childcare settings across England.
For Lead Members responsible for early years provision, the outcome of this review could have significant implications for local budgets and the availability of childcare places. Adequate funding rates are essential to maintaining the network of providers that support school readiness and give working families access to affordable early education.
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