A Government spokesman said that the childcare system is undergoing reforms to allow more providers to enter the market.
"High quality providers will be able to expand and more childminders will enter the market - this will mean parents have more affordable childcare.
"Ofsted will be the only arbiter of quality, removing any council duplication. As a result more taxpayers' money will go to the frontline.
"We want to help working families with costs and accessibility, and will make an announcement soon."