Middlesbrough is the worst place in the country for children not being properly prepared to start school, and the town ranked lowest in the OFSTED findings.
South Tyneside was second worst.
The findings come as a new report says that children in the most deprived areas get the poorest pre-school childcare.
However, staff at one nursery in Middlesbrough say the report unfairly labels their youngsters.
Watch the full report from Rachel Bullock below.
Middlesbrough has been named as the worst area in the country for the number of children who are ill prepared for starting school.
The town led in the Ofsted findings, with South Tyneside emerging second.
The report from the Policy Exchange found parents living in the most deprived parts of the country receive the poorest childcare, leaving youngstest ill equipped for full-time education.
The report says that the gap between childcare in rich and poor areas needs to be reduced.