David Cameron is concerned that funding streams for childcare are too complex and wants to look at ways to spend the Government’s investment in early education more effectively.
The UK spends more per head on childcare than most other countries, but childcare costs for parents are among the highest in the world.
There is also concern that parents find it hard to find after-school and holiday care in their areas.
Downing Street said that the commission would consider whether adult to child ratios could be relaxed to encourage childcare providers to set up out-of-school clubs.
It will also consider different ways to provide wraparound care, such as those already taking place in academies and free schools.
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