The analysis found that just over two thirds (68 per cent) of disadvantaged families are taking up their entitlement of 15 hours free childcare a week for two-year-olds.
This is lagging behind the government’s target of between 73 per cent and 77 per cent take-up.
There is wide local variation, the NAO found, with the most deprived areas of England recording the lowest rate of take-up.
The lowest take-up rate is in Tower Hamlets (39 per cent) compared with Stockport, where almost all (97 per cent) eligible families access the entitlement.
Variation within local authorities was also found, particularly in Essex, Kent and Lancashire.
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