Overall, the number of places registered with Ofsted has increased by 1,370, which amounts to a less than 1 per cent increase.
The data comes from Ofsted’s report on Childcare Providers and Inspections as at 31 March 2024.
Meanwhile official Government figures show that the number of two-year-olds accessing 15-hours has dropped to an all-time low.
Key figures: Ofsted – March 2023 to March 2024
- The number of providers registered with Ofsted has fallen by 1,440 (2 per cent) since March 2023, largely due to a fall in the number of childminders
- The number of childminders registered with Ofsted had decreased by 1,340 (5 per cent) to 26,500 providers. The decline was lower than in previous years, in part, due to the lower number of leavers.
- 27 million childcare places were offered by providers registered on the Early Years Register (EYR), up by 1,370 (less than 1 per cent)
- At their most recent inspection, 97 per cent of childcare providers were judged good or outstanding, an increase of 1 percentage point since last year.
Analysis of local authority data by the Early Years Alliance also shows that places have dropped in nearly half of all council areas in England.
For example, between August 2023 and March 2024, places have fallen from 31,218 to 31,040 in Lancashire. In Lewisham there has been a loss of just under 300 places, from 9,650 to 9,355, during the same period.
Neil Leitch, CEO of the Early Years Alliance, said, ‘Today’s Ofsted figures once again paint an extremely concerning picture of capacity in the early years sector.
'Despite a marginal increase in the number of overall places nationally, the continued fall in the number of providers, alongside the fact that just under half of individual local authorities have actually seen a decline in places – shows how urgently key sector challenges – namely, staffing and underfunding – need to be addressed ahead of the next phase of the expansion.
'What’s more, given much of this decline is once again down to falling childminder numbers, it’s clear that much more must be done to encourage childminding professionals, who are a vital source of quality, flexible care and education, to join and remain in the sector.
'Less than a week since the new government came to office, these figures could not be a clearer indication of the scale of the task at hand.'
The National Day Nurseries Association highlighted that while there had been a growth in out-of-school providers, there has been a loss of provision on the Early Years Register.
Purnima Tanuku, chief executive of the National Day Nurseries Association (NDNA) said, 'It is good news to see that the proportion of good and outstanding providers in the sector is growing. This is a testament to the amazing work happening day in, day out across the country in very challenging circumstances.
'Once again we are still seeing providers being lost in the early years part of the childcare sector. The growth in the number of school-aged childcare settings masks the loss of another 161 nurseries and pre-schools in the last financial year. This cannot continue at a time when the government is offering parents more funded places and we should be seeing expansion.'
The NDNA also noted that the proportion of staff qualified without a Level 2 qualification, Level 3 qualification or accredited graduate status has increased each year from 16 per cent in 2018 to 22 per cent in 2024.
Two-year-olds accessing 15 hours at lowest ever
Annual government statistics, also published today, show the number of children accessing the 15- and 30-hour funded entitlements.
The figures for education provisioner children under five are based on data taken from the census in January, so do not include the expansion of funded childcare to 15 hours for working parents of two-year-olds that started in April.
The figures highlight a fall in the number of two-year-olds in low-income families that are accessing the 15-hour offer.
The number of disadvantaged two-year-olds that are registered for the 15-hour entitlement has dropped by 7 per cent since last year, and is at the lowest recorded.
While this could be attributed to a fall in the birth rate, the low take-up is also due to the freezing of the income threshold, as well as changes to the benefit system, which means fewer low-income families are eligible for places for disadvantaged two-year-olds.
This means that the number of two-year-olds registered for the 15 hours in 2023 was 115,900 compared to 157,000 in 2015.
The Education Policy Institute raised its concerns about the fall in the number of eligible two-year-olds, and recommended that early years funding be weighted more towards low-income families.
Dr Tammy Campbell, director for Early Years, Inequalities and Wellbeing at the Education Policy Institute (EPI), said, ‘This lessened access for two-year-olds from low-income families is worrying, particularly in the context of current policy, which focusses on expanding funding for families higher up the income distribution. It is children from low-income families who are more likely to benefit developmentally from high-quality early education and care.
‘EPI therefore recommends that early years funding should be weighted much more heavily towards low-income families – as well as children with SEND, who are vastly underserved by the current system and the expansions.’
Leitch added that it was 'deeply worrying' that the registration of two-year-olds for the 15 hours was at a series low.
Commenting on the figures for education provision for children under five, Paul Whiteman, general secretary at school leaders’ union NAHT, said he was pleased Labour has made the early years one of its highest priorities and committed to 'a sea-change in early years provision. Policies like the expansion of nursery places in schools could be an important part of that work.'
He added, 'There is no doubt that there are things to be concerned about in this data.
'High quality early years education is one of the nearest things we have to a silver bullet in education, particularly when it comes to narrowing the gap between children from disadvantaged backgrounds and their peers. It is therefore a real concern that there has been a decline in the number of two-year-olds deemed eligible for funding to access early years provision.'
Tanuku highlighted concern about the rise in children with special educational needs in early years settings.
'The figures around children with SEND reflect the increasing numbers of children with growing needs that providers are telling us about from the frontline,' she said. 'Since 2020 the proportion of children with SEN has grown from 3.5 per cent of two year-olds to 5 per cent and from 6.6 per cent of three- and four year-olds to almost 9 per cent. This may only be the tip of the iceberg as we know that access to specialist services is delaying the identification of issues and plans being put in place.'
Education minister Stephen Morgan said, ‘I know from personal experience just how hard early educators work – and this government is determined to make early years our top priority, reset our engagement with the sector and set every child on the journey to improved life chances.
‘It’s encouraging that uptake of established offers and availability of places look to be heading in the right direction, but there is clearly much more to do to make the plans work for families across the country.
‘From creating tens of thousands of new nursery places to investing in breakfast clubs in every primary school, over the coming weeks we will set out our plan to make sure every child gets the best start in life.’
