More than two-thirds of full daycare settings were rated good and nearly all provided satisfactory care.
Funded early education for three- and four-year-olds also performed well, with more than 90 per cent of settings said to be good or very good.
Most childminders met Ofsted's minimum standards with nearly half rated good. Fewer than one per cent of childcare settings provide unsatisfactory care overall but about one in 10 of those ranked satisfactory or unsatisfactory did have shortcomings in one or more areas.
Common problems included failing to maintain adequate documentation, or dirty or unhygienic conditions.
The report found an overall increase of 15 per cent in the number of childcare places.
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