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
Emma Jesson brings you Saturday night's forecast
Christmas Eve could be rather frosty and at present, Christmas Day looks like being cold and clear with one or two wintry showers
Police are appealing for the public's help to trace a missing Sunderland man.