The number of childcare providers in England fell by 5% between 2022 and 2023, but there was a slight increase in the number of childcare places, according to the latest government figures.

Figures from the Department for Education’s Survey of Childcare and Early Years Providers, released today, found the number of childcare providers fell from 59,400 in 2022 to 56,300 in 2023. There was a 10% reduction in the number of childminders and 2% fall in the number of group-based settings, but a slight rise (1%) in the number of school-based providers.

Today’s figures chime with statistics released by Ofsted last month, which also noted a 5% fall in providers.

Neil Leitch, chief executive at the Early Years Alliance, said:  “This year’s survey raises serious concerns about the future of England’s early years sector, especially when given the rollout of the expanded offer is just months away. 

“The continued decline in the number of early years providers – falling 5% in the last year alone – is a clear sign of just how much pressure the sector is under, and is likely to have serious implications on accessibility and choice for parents when the new scheme is introduced.” 

The DfE survey found the number of registered childcare places increased by around 15,000, to 1,558,100. This 1% increase was driven by a 7% rise in the number of registered school-based provider places. Group-based providers and childminders both saw a fall in the number of places (0.1% and 3% respectively).

The number of paid childcare staff increased by 12,900, standing at 347,300. The number of staff working in school-based providers increased by 3,500 (7%) and the number of staff working in group-based providers increased by 11,100 (4%).

The survey also found the average fee charged by settings for children under the age of two was £6.05, up from £5.68 in 2022. The average fee for two-year-olds was £6.07, up from £5.68, and the average fee for three- and four-year olds was £5.90, up from £5.60.

“It’s no surprise to see that fees are continuing to increase for children of all ages,” said Leitch. “Despite the government’s constant claims of ‘record investment’ into the sector, it’s clear that the ongoing failure to address the early years funding gap is pushing prices ever higher and will continue to do so until the government gets a grip on this growing crisis. 

“It is vital, therefore, that the government reflects on these statistics and puts in place urgent action, including a realistic funding plan, both to stem the number of closures and enable providers to properly prepare for the expansion. The sector simply cannot afford any further delay.”