Delving into the inspectorate's latest annual early years data highlights key trends about the evolution of the childcare sector over the past year.

Here are James’ five key takeaways from the Ofsted Childcare providers and inspections data 2024/25.

Group providers and places increasing.

We have seen a steady growth from providers in terms of their readiness and place creation, so they can deliver the expanded early years entitlements. This means settings and schools will be better prepared to respond to the demand from families that we expect will build further. Indeed, DfE published recently that over 500,000 children were already in expanded places in summer term 2025. That is a huge achievement and a significant growth in service delivery. When the entitlements double to 30 hours in September, group provider capacity will continue to be important. Previously we have seen this developed through a combination of releasing place capacity, remodelling provision, and workforce development.

Quality ratings going from great to better.

It has been great to see what the impressive record on Ofsted inspections has further improved from 97% to 98% of providers being judged good or outstanding. This is a remarkable achievement given the challenges being experienced by providers, and the unprecedented level of change. In recent years, Ofsted inspections have become less frequent, and this may be a factor in this result. However, we know DfE is looking to Ofsted to increase the frequency and quality of inspections, so we expect this may influence the numbers and types of inspection outcomes.

Childminder decline continuing at the same rate.

We lost another 5% of childminders over the past year, the same as last year. A cumulative 10% loss over the past two years. This is disappointing when the potential opportunities for childminders are growing. Flexibility for delivery options has increased since DfE has changed various requirements, allowing for different delivery model choices, so we could argue the conditions are right, we now need to see a reversal of the decline. More childminders are taking early years funding, and there are likely to be some sufficiency pressures, whilst demand for wraparound (out of school childcare) appears to be growing.

Implications and inequalities for families.

The reduction in the number of childminders has implications for children living in rural or isolated areas, prefer a home-based early years or childcare environment, have SEND needs that don’t suit a group-based provision, or whose parents’ economic activities do not fit with the standard 8-6 Monday to Friday delivery model. Childminders fulfil a vital role in family-focused and flexible services beyond the more rigid models mostly offered by group providers, or the term-time focused offer from most schools.

Childminding is a key route into the wider sector.

Childminding is a career, full stop. It is also a career pathway. In my experience, childminders often come into the sector so they can balance their home-life and own child-rearing. A factor here was that their own costs of childcare made more economic sense for them to set up themselves. Now the funding rates are different and arguably childcare is more available and affordable, we wonder has the motivation therefore been reduced?

This typically lasts for around five years, and then there are choices to be made: carry-on (and if they do, they are more likely to stay for 20 years) or move into another job-role (preferably within the early years, childcare, or schools), or something completely different. The reducing numbers of childminders sound a warning sign to all of us concerned with bringing new people into the sector, and with ensuring we do whatever we can to keep such talent.

Quality childminding supply needs a concerted boost.

Diverse models of delivery remain important in the sector. One size most definitely does not fit all families or communities. Therefore, supporting childminders is crucial for maintaining a diverse and flexible childcare sector. Raising further awareness about the importance and benefits of childminding can attract new entrants to the profession, foster better inter-sector respect and status, and secure parental confidence. Highlighting success stories and the positive impact childminders have on children's learning and development can help improve the profession's image.

Offering financial support through grants or subsidies can help childminders manage operational costs and invest in their services. This can make the profession more financially viable and attractive. Providing access to ongoing training and professional development opportunities can help childminders stay updated with best practices and regulatory requirements. This can include workshops, online courses, and mentoring programmes as well as feeling part of a valuable service. Networking and sense of belonging (not isolation) needs to improve, so I think there is untapped opportunity for networking and childminder agencies here.