Cairneagle has released the latest edition of its survey of UK childcare providers. The survey collects responses from group operators of varying sizes as well as operators of single sites. It covers all regions of the UK.
Key takeaways include:
- Over 50% of operators reported like-for-like occupancy increases; this growth was greatest among mid-market providers
- Operators have seen increased demand from under-3s linked to the new funding, and a significant number have taken steps to expand capacity for this age group
- Operators reported an increase in revenue from government funding, particularly in the low-income and mid-market segments; our survey suggests funding now accounts for over 50% of sector revenue
- Challenges persist across the sector, with increases to staff wages the top issue faced; government policy on extras has grown as an area of concern over the past year
- There are mixed views on how margins have evolved over the last year (2025 vs. 2024)
- Operators expect to focus on consolidating existing estates by addressing staffing shortages and improving quality over the next twelve months; however, c. 40% consider growth (either greenfield or M&A) a priority
Authors: Arun Kanwar, Partner and James Winship, Senior Consultant
You can request a full copy of our report here
