A report by the Education Select Committee said that the inspectoratehad grown too large to function properly and that education andchildren's care should be split into two new inspectorates.
MPs also said that there was an urgent need to reform the VoluntaryChildcare Register.
The report called for a new Inspectorate for Education, havingresponsibility for nurseries, schools, colleges, adult education,teacher training and local authority commissioning of schools. AnInspectorate of Children's Care should be created to focus entirely onchildren's services and care, including children's homes, adoptionservices, childminders and CAFCASS.
The report said the two inspectorates should share administrativefunctions and work closely together, particularly on joint inspectionsof children's centres and nurseries.
However, it said they should 'retain different elements of expertise andseparate chief inspectors'.
It added that the children's care inspectorate should more activelysupport improvement and quality, particularly because childminders andadoption agencies may not have access to the partnership-basedimprovement model that schools do.
'The Children's Care Inspectorate should ensure that its workforce hasexperienced practitioners who command the respect of social workers andchildcare professionals, and who can promote and support improvement aswell as regulating for statutory purposes,' the report said.
Graham Stuart MP, the committee's chair, said, 'Ofsted's reach is vastand it has grown substantially since its inception, but this has come atthe expense of providing a more specialised service.
'We need a radical shift in how inspection operates in this country,with a more proportionate, specialist and focused approach.'
Responding to the findings, Ofsted's chief inspector Christine Gilbertsaid, 'Any proposal for further reorganisation needs to be carefullyconsidered and is ultimately a matter for Government. There are issuesabout additional costs and a risk of distraction from the core business- continuing to deliver high-quality, rigorous inspection which helps todrive up standards for children and learners.'
However, she said there were many constructive suggestions that Ofstedwould consider. 'We accept, for example, the concerns about theVoluntary Childcare Register and would welcome any changes to thelegislation under which that operates,' she said.
Philip Parkin, general secretary of Voice, the union for educationprofessionals, said Ofsted had become 'broad and unwieldy'.
He said it was 'outrageous' that Ofsted had no legal power to compel ananny who had been struck off the Voluntary Childcare Register to returnher registration certificate.
Commenting on the fact that Ofsted does not inspect outstanding schools,he said, 'Exempting outstanding schools from inspection is like giving acar that's passed its MOT exemption from all further tests unlesssomeone reports it for going through a red light. As time passes and thehead, staff and pupils change, so will the school. There's no guaranteethat it will remain outstanding.'