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by Jess Gibson

Low early education and childcare availability in England’s most deprived areas is inhibiting choice and quality, according to a report by University College London (UCL) researchers.

The report, funded by the Joseph Rowntree Foundation (JRF), found that the total number of registered nurseries in England declined from 24,000 to 22,500 between 2018 and 2024. This fall occurred mainly among not-for-profit settings (19%), which are most likely to be in deprived areas.

It also identified that settings backed by private equity (PE) – which usually consist of large nursery chains – are more likely to open in wealthier areas to maximise profit, while not-for-profit settings that are usually operated by charities, local community organisations or educational establishments are declining at a faster rate in deprived areas than in their wealthier counterparts.

Despite the overall decrease in PE-backed providers, UCL’s research notes that their sector share has increased from 2% to 5% due to the decline of not-for-profit nurseries in the same period. Meanwhile, it also found that for-profit settings – which are usually privately-owned but not PE backed – form the bulk of options in deprived areas, with a 10% increase between 2018 and 2024.

Additionally, fewer Ofsted ‘outstanding’ settings are located in deprived areas, which the researchers say suggests that PE backed and for-profit settings invest more quality of care and education in more affluent areas.

UCL’s report concludes that lower-income families in deprived areas have fewer options, leading to ‘care deserts’, characterised as an area with three or more children for every licensed early years place. Research by New Economics Foundation in 2024 found that, within the cohort of most deprived local authorities, over 80% were also classed as care deserts, compared to less than 5% in the wealthiest.

The research calls on the government to support local authorities in managing the market to incentivise providers to open in more deprived areas and avoid what it calls “monopolisation” of the early years sector.

Lead author Dr Antonia Simon (IOE, UCL’s Faculty of Education & Society) said: “High-quality early childhood education and care has been linked to improving the life chances of all children, especially disadvantaged children such as those from poorer homes. However, the distribution of openings and closures is uneven, particularly for more deprived neighbourhoods, meaning that those who need this care the most cannot access it and are now living in ‘care deserts’.

“Our previous study showed that the early years sector is characterised by acquisitions, mergers and takeovers, with many providers operating with huge amounts of debt. Additionally, a growing proportion of these providers are PE backed large companies and chains, driven by profit-making. This research also finds a link with PE, with the fewest openings in the most deprived areas, suggesting these providers may avoid operating in these areas. If this continues, families in deprived areas will not have a choice about where to send their children.”