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.
More top news
Two teenagers found dead at the foot of a sheer drop at Huntcliff have been named as 17-year-olds Alex Yeoman and Harry Watson.
Emma Jesson brings you Sunday's forecast
The singer confirmed she had welcomed her first child in an announcement on the eve of Mother's Day.