BabyRush- hoping I have misunderstood you, but do you mean that the 2 year olds are sitting listening to an adult for an hour at a time?!? (interpreted by you as 'teaching') Then they all have to go & do the same craft activity?
This does not fit at all with the EYFS, children should be given a range of activities & resources to choose from!! It is called free-play by many settings- but in practice it is self directed learning. The teacher is still 'teaching' and the children are given far greater opportunity to learn from a wider curriculum (rather than the limited approach of sitting & listening to one subject at a time, on an adult's schedule.)
Sitting still listening to an adult should be a few minutes maximum, and even craft activities should involve choice. Creativity is about creating from your own ideas, experimenting with materials, learning through process- not focusing on producing a product. Especially at age 2.
I would have serious concerns about a 2 year old attending a setting like you have described. As it does nothing to encourage independence, social, physical, communication skills. Or anything really. Real teaching in the early years is about planning activities in response to observations of the children's interests. The teacher should be interacting with children 1:1, in small groups, & working to prepare an environment that invites involvement & experimentation.
The teacher led activities (songs, stories etc... Should be a small part of the programme) as the child led stuff requires so much more of your time. That stuff can also happen throughout the day, in response to the children's interests.
Hope I have misunderstood you!