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"Formal childcare from childminders, nurseries and children's centres across the country provides an invaluable service to millions of families. It is right that we ensure formal childcare is of the highest possible standard and that this is backed up by thorough inspections by Ofsted to ensure every child has the best possible start in life.
"This move strikes the right balance between ensuring the quality and standards of formal childcare whilst protecting informal arrangements between friends."
The amendment to an Order under the Childcare Act 2006 will be supported by revised Ofsted guidance which will highlight where and when childcare arrangements are considered to be formal and within their inspection remit.
The Government is clear that the amendment does not affect the tens of thousands of professional childminders who provide a valuable service to parents.