The inquiry will assess the sustainability of its workforce, families' access to services and the quality of outcomes for young children.
Education Committee chair Helen Hayes said: ‘The early years sector has seen significant reforms in recent years in terms of how services are provided and funded.
‘This inquiry will take stock of the recent changes and the outcomes for young children and families, as well as the implications for the wide range of settings delivering early education and childcare.'
MPs will look at how the recent expansions of childcare entitlements have reshaped the sector and will examine the Government's Giving Every Child the Best Start in Life Strategy, announced in July, which includes an expansion of Best Start Family Hubs; £4,500 incentives for early years teachers to work in disadvantaged areas; Ofsted inspections of early years settings every four years; and stronger links between nurseries and schools.
The committee will look at whether the Government's new policies will support its aim for 75% of children to achieve a ‘good level of development' at the end of the Early Years Foundation Stage by 2028.
There will also be a focus on how the Government can ensure the sector can be inclusive to families across the country, including areas that have become ‘childcare deserts', and inclusive to those with special educational needs and disabilities.