The early years sector is facing increasing pressure from multiple directions. At the latest Childcare & Education Expo Advisory Board meeting on May 6th, 2026, members came together to discuss key challenges currently impacting early years settings across the UK. From workforce shortages and rising operational costs to growing SEND demand and expanding childcare entitlements, settings are under significant strain.
While recent policy changes aim to improve outcomes for children and families, many settings are struggling with the realities of implementation. More than ever, they are being asked to deliver more with fewer resources, while navigating a rapidly evolving sector.
From the findings of our Advisory Board, we explore some of the biggest challenges facing the early years sector and the changes needed to support a more sustainable future. Our seminar programme for Childcare & Education Expo National, taking place on 2nd–3rd October 2026 at the CBS Arena Coventry, has just been released. We will highlight relevant sessions that directly respond to these issues.
Workforce Shortages and Staff Retention
The key challenge facing early years providers today is workforce recruitment and retention.
Settings are struggling to attract qualified practitioners, particularly for roles involving babies and children under three. Rising workloads and increasing expectations are also contributing to burnout and long-term retention challenges.
Workforce pressures include:
• Difficulty recruiting qualified practitioners
• High turnover across settings
• Ongoing shortages in baby and toddler rooms
• Competition from higher-paying sectors
Many providers are now competing with industries offering similar pay for significantly less responsibility, which continues to impact retention.
At Childcare & Education Expo National, these issues are explored through sessions including Building a Resilient Early Years Workforce: Recruitment, Retention & Wellbeingand Strategic Leadership for Sustainable Growth.
What Providers Are Doing to Strengthen Retention
While recruitment remains challenging, many settings are now shifting focus towards longer-term workforce stability.
This includes creating clearer career pathways within settings, alongside protected non-contact time to reduce pressure on practitioners. Wellbeing support, such as reflective supervision and mental health training, is also becoming more embedded.
Alongside this, providers are placing greater emphasis on professional identity, positioning early years as a skilled and valued career. Some settings are also introducing more flexible working patterns where possible, which has supported improved retention.
SEND Pressures Are Increasing
SEND provision continues to place significant pressure on early years settings. Rising numbers of children with additional needs, combined with delays in assessment and inconsistent access to support, are making early intervention increasingly complex.
Key challenges include:
• Delays in assessment and external support
• Inconsistent funding across local authorities
• Limited specialist training for practitioners
• Increased reliance on nurseries for early intervention
The SEND in Early Years Conference, running alongside Childcare & Education Expo, will explore how leaders are working to strengthen inclusive practice.
How Settings Are Embedding Inclusive Practice
In response, many providers are embedding inclusion more deeply into everyday practice rather than relying on external systems.
This includes early identification through daily observation, and the introduction of SEND champions to support consistency across teams. Many settings are also investing in whole-team training, ensuring inclusion is shared responsibility rather than isolated expertise.
Stronger collaboration with schools and early help services is also supporting earlier intervention, while inclusive design is increasingly being built into everyday provision.
Funding and Financial Sustainability
Although government investment has increased, many providers report that funding still does not reflect the true cost of delivering high-quality early years education and care.
Rising staffing costs, compliance requirements, and inflationary pressures are all impacting budgets. In many cases, this is leading to difficult decisions around fees and long-term sustainability.
Practical Steps to Improve Financial Resilience
Despite these pressures, some providers are strengthening sustainability through operational improvements.
Key strategies include:
• Smarter staffing aligned to demand
• Improved occupancy planning
• Investment in staff retention
• Shared resources through local networks
Sustainability is increasingly being driven by efficiency and stability as much as funding levels.
The Gap Between Policy and Practice
A growing concern across the sector is the disconnect between policy design and operational reality. Many providers feel policies are developed without full understanding of day-to-day early years environments.
This is compounded by school-based models being applied to early years settings, limited practitioner input, and inconsistent interpretation of guidance.
As a result, settings are often required to interpret and implement changes in real time while managing existing pressures.
At Childcare & Education Expo National, attendees can speak with Ofsted at the Advice Corner or attendExploring Regulation Reform with Ofsted.
How Providers Are Responding More Effectively
Some settings are taking a more structured approach to managing policy change.
This includes:
• Internal policy leads to cascade updates
• Simplified internal guidance for staff
• Piloting changes before full rollout
• Sharing interpretation through peer networks
These approaches are helping reduce confusion and improve consistency across teams.
Child Development, Curriculum and Learning Environments
Alongside operational pressures, expectations around curriculum delivery and learning outcomes continue to evolve. Increasing focus is being placed on emotional safety, play-based learning, and school readiness.
Seminars exploring these themes include Growing Slow: Repetition, Rhythm, Brain Development & Attention in Under-2s, Continuous Provision – Where the Real Learning Happens andBelonging Before Learning: Emotional Safety in Learning Spaces.
Shifting Practice in Learning Environments
Many settings are now refining practice to focus more on experience and environment than structured delivery.
This includes slowing planning cycles to prioritise depth of learning, alongside a stronger emphasis on emotional regulation. Observation is being used more intentionally to shape provision, and environments are being designed to feel calmer and less overstimulating.
There is also growing emphasis on embedding communication and language strategies into daily routines rather than treating them as standalone learning.
Overall, practice is shifting towards more responsive, child-led environments.
Administrative Burden and Operational Pressure
Administrative workload remains a significant challenge across the sector. Increasing compliance demands, complex funding processes, and rising paperwork are all reducing time spent directly with children.
Many providers also report that systems are overly complex, adding unnecessary pressure on staff wellbeing.
Reducing Administrative Load
In response, some settings are actively redesigning systems to reduce burden.
This includes introducing digital systems, allocating dedicated admin time within working hours, and streamlining documentation to remove duplication. Centralised compliance processes and admin support roles are also helping larger settings free up practitioner time.
Where time is actively monitored, providers are often better able to identify inefficiencies and reduce workload pressure.
Conclusion
The challenges facing early years providers are deeply interconnected. Workforce shortages, SEND pressures, funding gaps, and administrative demands continue to place significant strain on the sector.
However, there are clear opportunities for improvement through workforce development, stronger SEND support, improved policy implementation, and closer collaboration between policymakers and providers.
These themes will be explored further at Childcare & Education Expo National through a range of expert-led seminars and discussions.
Find out more here.
