I’m confused as to where that caused unqualified babysitters to no longer be able to work? A government funded Pre-K does not preclude a paid independent Pre-K any more than normal schools preclude private schools.

You might be interested in https://assets.publishing.service.gov.uk/media/65aa5e29ed27ca001327b2c6/EYFS_statutory_framework_for_childminders.pdf which sets out the statutory framework under which childminders must operate in England. They aren’t unreasonable, but certainly sufficiently onerous to exclude many of the kind of people who were childminders before 2002.

Here’s a brief history of how things have changed https://thetrainingfox.co.uk/the-history-of-the-eyfs/