The Premier Mike Baird has ruled out investigating a radical method of home schooling gaining popularity in NSW despite the recommendations of a parliamentary inquiry that warned it could be a form of "educational neglect".

The home schooling teaching method, called unschooling, is seen as a natural learning approach, in which children decide what they learn and when and parents give them freedom to pursue their interests.

Only 10 per cent of home-schooled children take part in NAPLAN. Credit:Neil Newitt

But a NSW upper house inquiry was highly critical of the method, doubting it could "achieve quality educational outcomes for the child".

A report from the state's parliamentary inquiry into home schooling, prompted by revelations that there could be as many as 10,000 children in NSW being taught at home even though only 3200 are formally registered, urged the NSW Board of Studies to commission research into unschooling.