New Ofsted Childcare Statistics 2026: What the Latest Figures Mean for Nursery Owners

What do the latest Ofsted statistics show?

As at 31 March 2026, Ofsted had 59,700 registered childcare providers. This was 720 fewer than in March 2025, representing a decline of approximately 1%.

More providers still left the sector than joined it during the year. Ofsted recorded 6,060 joiners and 6,780 leavers, producing the net reduction of 720 providers.

However, the rate of decline has slowed. In the previous reporting year, provider numbers fell by approximately 2%, with a net loss of 1,370 providers.

Nursery and pre-school provider numbers increased

Ofsted recorded 27,900 childcare providers operating from non-domestic premises. This category includes nurseries, pre-schools, holiday clubs and other group-based childcare settings.

The number increased by 410 providers, or approximately 1%, between March 2025 and March 2026.

This is an important distinction. The overall fall in childcare provider numbers does not mean that the number of nurseries and pre-schools is falling nationally. Group-based provision has continued to expand, even as the number of childminders has declined.

For someone considering opening a nursery, this means the national data should not be interpreted as proof that there is automatically less competition. Local childcare sufficiency, population changes, funded demand, nursery occupancy and the type of places families need remain more important than the national total.

There are more childcare places despite fewer providers

Providers on the Early Years Register offered approximately 1.31 million childcare places as at 31 March 2026. This was an increase of 26,500 places, or 2%, compared with the previous year.

Of these, approximately 1.16 million places were offered by providers operating from non-domestic premises. Places in this part of the sector increased by 30,500, or 3%.

This helps explain how the number of places can rise while provider numbers fall. Childminders generally provide fewer places individually, whereas nurseries and other group-based settings can provide places to a much larger number of children.

The figures therefore point towards a continuing change in the balance of provision, with a growing share of places being delivered through nurseries and other group settings.

The decline in childminders has slowed, but continues

There were 24,700 childminders registered directly with Ofsted at the end of March 2026. This was 630 fewer than one year earlier, a decline of approximately 2%.

During the year, 1,690 childminders joined Ofsted’s registers and 2,320 left.

The reduction remains significant, but it is smaller than the previous reporting year, when childminder numbers fell by approximately 5%.

The Ofsted total does not include every childminder operating in England. Childminders may instead register through a childminder agency.

What do the new inspection figures tell us?

This is the first official statistical release to include inspections completed under Ofsted’s renewed education inspection framework, introduced on 10 November 2025.

Between 10 November 2025 and 31 March 2026, Ofsted carried out 2,050 inspections of providers on the Early Years Register under the renewed framework.

Among 1,720 full Early Years Register inspections, the percentage graded at the expected standard or above in each evaluation area was:

Safeguarding standards were met in 98% of the 1,910 relevant Early Years Register inspections included in the release.

Ofsted also reported 760 inspections where actions were issued. Of those inspections, 71% had actions relating to safeguarding and welfare requirements, while 29% had actions relating to learning and development.

What does this mean for nursery owners?

What does this mean for people planning to open a nursery?

The figures provide reasons for cautious confidence rather than a simple answer about whether opening a nursery is a good idea.

• The number of nurseries and other non-domestic providers has increased, showing continued activity and investment in group-based childcare.
• The number of available places has grown, meaning a new provider must understand exactly how it will compete.
• Childminder numbers continue to decline, which may affect the type of provision available to families in some local areas.
• Funding expansion may support demand, but demand alone does not guarantee that a nursery will be profitable.
• Property cost, staffing, fee structure, occupancy and local childcare sufficiency remain central to viability.

The national statistics are a useful starting point, but a nursery business decision should ultimately be supported by local research and a realistic financial forecast.