The NAO found that although take-up of the entitlement is high, the quality of provision is variable. Take-up has remained at 95% since 2008, despite an 8% increase in children eligible for the free entitlement. However, the percentage of 'good' or 'outstanding' provision across local authorities ranged from 64% to 97% when inspected in March 2011, with deprived areas less likely to have high quality provision.

Children’s development at age five has improved since the introduction of the free entitlement, according to the report: 59% of five-year-olds achieved a 'good level of development' in 2010-11, compared with 45% in 2005-06. However, Key Stage 1 results have not improved since 2007. Commenting on this, the NAO said: 'Although the relationship between the entitlement and Key Stage 1 results is not straightforward, the DfE intended the entitlement to have lasting effects on child development throughout primary school and beyond. It is not yet clear, however, that the entitlement is leading to longer-term educational benefits.'

For a more detailed overview and to download the full report, visit the NAO website.