Ruth George (High Peak) (Lab) I beg to move, That this
House has considered the effects of 30 hours free childcare.
I am here now, Mr Rosindell—thank you. We are all here
because we want all our children to get the best possible start in
life and to be as ready for school as they can be, and because we
want working parents to know that...Request free trial
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(High Peak) (Lab)
I beg to move,
That this House has considered the effects of 30 hours free
childcare.
I am here now, Mr Rosindell—thank you.
We are all here because we want all our children to get the
best possible start in life and to be as ready for school as
they can be, and because we want working parents to know that
they can rely on high-quality childcare in a fun, friendly
and caring setting that is nearby. Those factors are
important to ensure not just that our children are
school-ready, but that they are happy and relaxed and make
friends.
I have four children, aged between eight and 25. As a mum who
has worked all my adult life, I can vouch for how important
it is for a child to be happy with their nursery or
childminder. There is nothing worse than having to leave a
child when they are crying or unhappy. That happens with
almost all young children in the first few days, but they
soon settle down, trust the staff, make friends and have a
great time. The only thing worse than leaving a crying child
is getting back at the end of the day and finding that they
have been unhappy all day.
I have been lucky in the rural area where I live to have had
excellent and friendly childcare nearby for all my children.
We all welcome the consistent work to drive up standards in
early years, so that 95% of providers are now judged by
Ofsted to be good or outstanding. We all want good-quality,
affordable and sufficient childcare. Although the policy of
30 hours of funded care for three and four-year-olds aims to
increase the affordability of care, the lack of Government
funding has raised doubts across the country about
affordability, quality and sufficiency.
Why has that policy been so underfunded? At the Conservative
party’s childcare campaign day on Monday 15 April 2015, in
the run-up to the general election, said that he would create
an extra 600,000 free childcare places if he was returned to
power. That was certainly a popular policy. The weekend
before that announcement, the Conservatives had been behind
Labour in every poll, but the day after the announcement—16
April—they were ahead in every poll, except one that was
tied. At the time, the BBC reported that Labour described the
policy as “another unfunded announcement”. BBC political
correspondent Carole Walker said that Mr Cameron was “likely
to face questions” about how the Conservatives would ensure
that sufficient childcare places were available. She was
right about the questions, but not about the person who would
be questioned.
The Conservatives said that the 30-hour offer would result in
more than 600,000 extra 15-hour childcare places every year
from 2017, and that it would be funded by reducing tax relief
on pension contributions. However, when those changes to tax
relief were announced in the 2015 summer Budget, we were told
that they would fund Conservative cuts to inheritance tax,
not childcare, so the extra 15 hours of supposedly free
childcare for 600,000 children were left without any specific
funding. It is no wonder that the number of places has
reduced to a third of what was promised in 2015 and that
providers have been left wondering where all the money has
gone.
Concerns were raised as soon as the projected funding levels
were announced. Some 62% of all early years providers
surveyed by the Pre-school Learning Alliance in March 2017
said that the funding they will receive in 2017-18 is less
than the hourly rate they charge parents and less than the
hourly cost of delivering a funded place. It is not
surprising that more than half—58%—expected that the 30-hour
offer would have a negative impact on their businesses, and
just 17% predicted a positive impact.
-
Dr (Ealing Central and Acton)
(Lab)
My hon. Friend mentioned the Pre-school Learning Alliance.
Some Government Members say that they have had enough of
experts, but does she agree that they should listen more to
groups on the ground, such as my constituent Jane Reddish and
her group What About The Children? Its excellent report on
the 30-hours policy raises many of the same concerns as my
hon. Friend, specifically pertaining to the special
developmental needs of nought to 36 month-olds. The Minister
would be well advised to meet that group, as the shadow
Minister, my hon. Friend the Member for Batley and Spen
(Tracy Brabin), soon will.
-
I thank my hon. Friend for that intervention.
A survey of local authorities by the Family and Childcare
Trust in February 2017 found that only a third thought that
there would be enough childcare for three and four-year-olds
using the 30-hour offer, while a third did not know whether
there would be a reduction in care quality as a result of the
offer’s roll-out. Some 44% of those local authorities said
that the 30-hour offer would reduce the financial
sustainability of some settings, so some childcare providers
would go out of business. The survey found that the extension
of free hours could compromise things that parents thought
were priorities for high-quality childcare. That is
important, because only high-quality childcare helps to boost
children’s attainment and close the gap between disadvantaged
children and their wealthier peers.
It was good that the Government introduced pilot schemes in
September 2016 to see what would happen. The Minister has
claimed that those pilot schemes were a great success. In
response to the urgent question on 6 September from my hon.
Friend the shadow Minister, when we were finally given some
figures on the number of children registered for places, the
Minister said:
“If we look at the pilot areas that have been delivering for
a year now…we can see that 100% of their providers are
delivering and 100% of the parents who wanted a place found
one, despite some reservations being put on the record…at the
very beginning. The pilots have demonstrated that we can
deliver and we are delivering.”—[Official Report, 6 September
2017; Vol. 628, c. 163.]
However, some nurseries that were involved in the pilot tell
a very different tale. The owner of Polly Anna’s Nursery in
York, the only area on the lowest level of local authority
funding—£4.30 an hour, of which £4 went to providers—said
that he wrote to the Minister to say that although he was in
favour of any Government measure to reduce the cost to
families of their child’s early education and care and of any
improvement to quality and staff qualifications, £4 an hour
would represent an increase of only 2% a year in the 10 years
from 2010, at a time when costs will have increased
disproportionately.
-
(Dudley South) (Con)
Does the hon. Lady recognise that an independent study put
the cost of providing childcare for three and four-year-olds
at about £3.72 per hour, whereas the average amount that goes
to a council is £4.94—significantly more?
-
I accept that a study was done in 2015. That was before we
knew the outcome of business rate increases and before we had
seen the impact on the sector of the national living wage
policy and of auto-enrolment. All those things significantly
increased the cost of nursery provision and were not known at
the time the study was done, so it is erroneous to use those
figures for funding projections up to 2020.
-
The Minister for Children and Families (Mr Robert
Goodwill)
I thank the hon. Lady for giving way. The review of childcare
costs was described as “thorough and wide-ranging” by the
National Audit Office, so we believe we can base our costings
on those figures. Does she disagree with the National Audit
Office’s judgment?
-
In 2015, when those figures were done, they may well have
been up to standard, but they do not represent the increase
in costs that nurseries have seen in the past two years and
certainly will see even more with the increase in
auto-enrolment costs and the increase in the national living
wage that will be ongoing up until 2020. They figures are
utterly at odds with all the evidence that comes from local
authorities and from the childcare provision sector, who have
given ample evidence about their costs and the amount that
they have to pay for the provision. In fact, a provider from
the Minister’s own constituency wrote to tell him:
“I ask myself do I really want to continue working as a
childcare provider when my wage will now match that of a
supermarket worker without the responsibilities of a
childcare provider, the paper work, Ofsted and book work. I
am sad it had come to this.”
The fact that the Minister claimed he had not heard a peep
from providers about their problems, either in the pilot
areas, or with the full roll-out, has annoyed many of them.
Hundreds of providers have peeped to the “Champagne Nurseries
on Lemonade Funding” Facebook group to say that they
certainly have peeped.
-
Mr Goodwill
May I suggest the hon. Lady looks at the record of what I
actually said? I was listing the pilot areas and referring to
Members of Parliament in the House and the fact they had not
raised those issues with me during the period of the trial.
-
I am afraid I have copies of the emails from the providers in
York and Scarborough that were sent during the pilot. They
wrote to the Minister about their concerns to do with the
pilot that they were participating in, so there seems to be a
discrepancy there.
In spite of numerous concerns being raised from the pilot
areas, national organisations, local authorities and the
sector itself, the Government have pressed ahead with the
roll-out. My parliamentary questions in July asking for
figures on the number of parents registered and on those who
had successfully obtained a place went unanswered. Local
authorities were forbidden to give the figures for their own
areas, even in response to freedom of information requests,
so we had a total lack of information on what was happening
up until September, except for reports from parents that they
were struggling to register on the website. We heard from
nurseries that they were unable to provide the 30 hours and
from parents that they therefore could not find places.
In September, in response to an urgent question from my hon.
Friend the Member for Batley and Spen (Tracy Brabin), we were
told that 152,000 parents had secured a place, 71% of those
who had registered. In spite of the contrast with the 600,000
places that were promised originally by when this vote-winning
policy was announced, we were told that this was a great
success. But that great success story still involved nearly a
third of parents who had registered not having secured a
place at the start of term in September. Some 64,000 children
missed out on the important start of term activities where
children learn to settle into their nursery or childcare
place. When they start late, they always feel as if they are
catching up, as routines are already established and
friendships made. I hope the Minister will now update us on
how many of those 64,000 children have now secured their
place, albeit late.
Nurseries are struggling. They have seen huge increases in
costs in recent years, as I mentioned earlier. Until June I
was on the board of a non-profit-making childcare provider,
so I have seen the costs for myself. I set up the pension
scheme that sees employers making contributions for their
full-time staff. Those contributions are just 1% at the
moment, but they will increase to 2% and then 3%, on top of
wages. As a trade unionist, I also advised on a wages policy
to properly reward all the staff and give incentives for
attaining extra qualifications as well as making sure we
always paid at least the national living wage.
Paying better wages is an excellent policy, but it needs to
be funded, and the funding calculations simply do not take
into account the fundamental cost and the increases for every
childcare provider. That goes alongside the business rates,
where most nurseries have seen a huge hike. It is no wonder
the National Day Nurseries Association, from its survey in
September, said that the 30-hours policy was in chaos. It
said more than half of nurseries had had serious worries
about having to increase fees for paid-for hours to
unacceptable levels, and even about staying in business at
all.
Nearly 300 nursery managers and owners completed the survey,
which found that four fifths of those offering 30 hours were
having to make additional charges for food and special
sessions such as language or sports classes, or trips out.
More than half of the respondents said parents understood
additional services and were happy to pay, but a quarter said
they were finding parents did not want to pay.
-
(Canterbury)
(Lab)
My hon. Friend the Member for Batley and Spen (Tracy
Brabin), the shadow Minister with responsibility for early
years, has just chaired a panel with childcare providers
and I have taken down some of the quotes from that meeting:
“The system is complex, long-winded and many parents give
up”; “It’s not free, so let’s stop calling it free”; “We
are making a £5,000 loss every month”; and “This year I
have lost 25% of my intake.” Does my hon. Friend agree that
such quotes mean that the system is not currently fit for
purpose?
-
Absolutely. I am sorry to have to agree with my hon.
Friend.
When almost 80% of nurseries have spent time helping
families to apply for the 30 hours, and with 14% saying
this had taken more than five hours of staff time per week
during the summer, it is no wonder that nurseries are
struggling. The policy has had a huge impact in my
constituency of High Peak. We have seen three nurseries
close their doors over the summer as they simply could not
make the finances work. Others have lost out significantly,
even when taking on additional children from nurseries that
have been lost.
A nursery in Buxton reports that it has lost £19,000
through charging for the meals it used to provide over the
lunch period and charging for the additional hours that
parents took on top of the 15 hours. Deborah from the
Serpentine Nursery says,
“Having run my Early Years provision successfully for 35
years we have taken every change ‘on the chin’, risen to
the challenge and carried on without any significant
recognition except our Ofsted Outstanding. What other
businesses are treated in such a shabby way!”
Flagg Nursery School, a very small village nursery just
over my border, in a maintained setting, anticipates it
will lose £20,000 a year owing to the lunchtime charges it
cannot now make and the payment for the additional hours.
The headteacher, Sarah, told me,
“Personally I think it is a great idea to offer 30 hours of
childcare for working parents. We have always had children
who have attended for the full week but in the past there
was a charge. I just don’t feel that the hourly rate is
sufficient and is not sustainable in the long term.”
In Furness Vale and New Mills, First Steps Nursery, where
my daughter did some work experience, is now losing £10.50
per day per child. It says that if a child takes 30 hours a
week, it loses £45 a week for each child. No wonder
nurseries are worried about the quality of their provision.
First Steps says:
“If we are to continue providing quality for children the
rate given for funding needs to increase immensely. We
offer our children Forest School and swimming lessons but
in order to do this safely we have to have a high staff
ratio. The amount we are given does NOT cover this and we
are subsidising this so that the children can have the
best.”
Flagg’s headteacher spoke of the quality of staff they
could employ. She says that staff costs are the most
important of all their costs:
“I feel that we ought to have experienced, highly qualified
staff working in this sector as these are our most
vulnerable children. Experience needs to be paid for though
and underfunding could lead to children not being
adequately cared for.”
Among my local maintained nurseries there was also concern
that the extra 15 hours meant they could not offer places
to children who qualified for only 15 hours. The head at
New Mills nursery said that the initiative significantly
reduces the ability to address the needs of the most
disadvantaged children, and was a huge missed opportunity;
the assumption is that that was overlooked, and that the
initiative was driven by the childcare and working families
agenda, not by the impact of quality education on the
youngest, and some of the most vulnerable, members of
society.
The children with the most need, such as the socially
disadvantaged, are not eligible for the additional 15 hours
of funding. Being good at closing the gap between
disadvantaged children and their more advantaged peers is
the very thing for which nursery schools have historically
been recognised. Social mobility is an important issue that
is not addressed by the 30 hours—something that in many
ways contributes to increasing the gap between the poorest
and better-off families. There are not enough places for
all the children with 30 hours as well as those who qualify
for just 15.
The headteacher at Hadfield Nursery School in the north end
of my constituency says that the Government have
underestimated the number of eligible parents and there are
not the places to meet the demand. She is trying to
signpost parents to other local providers, because her
nursery cannot offer the full number of 30-hour places so
they are trying to share them with other providers—15 hours
each. It is a worry that as those nurseries have in effect
to offer full-time places now, the impact has, again, been
to reduce the offer of 15 hours. Those anecdotes from my
constituency are backed up by the Sutton Trust, which says
that the scheme was not adequately resourced, and the new
funding formula will divert resources away from state
nurseries disproportionately attended by disadvantaged
children. Kitty Stewart, associate professor of social
policy at the London School of Economics, said:
“To make up some of the funding gap, a new funding formula
reallocates resources away from state nurseries
disproportionately attended by disadvantaged children, and
they may in the future struggle to afford a qualified
teacher. To remove this advantage must be expected to have
negative effects on social mobility.”
It is not only nurseries, but childminders, who are
affected. They are already struggling. There are now 24%
fewer childminders than in 2012—a drop of more than 10,000.
Childminders often provide vital home-based care for
younger children, or children who would struggle in a
nursery setting. One of the childminders in my constituency
commented:
“I personally feel that as a nation it is presumed that
once a parent returns to work they send their children
straight to nursery, when there are alternatives that can
provide a more nurturing environment for babies and young
children; and this needs to be emphasised—it’s not all
about nurseries.”
However, such childminders cannot afford to run the 30-hour
scheme, and so they lose out with respect to children
coming to them.
What about the impact on parents? If they qualify and they
can find a place, parents of three and four-year-olds will
have a drop in their nursery fees, even if they have to pay
some charges; but parents who qualify only for the 15 free
hours, and parents of the most disadvantaged children,
struggle to find even those free hours. That will be of
huge detriment to their children’s life chances
individually, and to social mobility as a whole. Parents
with younger children will pick up the bill as charges for
younger children have had to increase to make up the
shortfall with respect to three and four-year-olds. A mum
in my constituency, Emma from Buxton, says that her charges
have increased by £230 a month for her one and two-year-old
children, and she feels it is not worth her going to work
any more. That will have an impact on the most
disadvantaged children. Having two parents’ incomes, or
having a single parent in work, is an important factor in
improving children’s life chances. Emma is worried that the
nursery will not even be able to stay open until the oldest
child is three, because they are struggling so much to get
by. She says:
“So in conclusion we are not much better off in the long
run because of how the hours are being offered, and right
now we are being crippled by the hike in price. Nurseries
have to change their pricing policies in order to survive”,
but they cannot do that in the face of the funding
situation.
I am particularly concerned about the impact on the quality
of employment in early years, as I have mentioned. My
daughter has just completed an early years degree, so I
know how much goes into that qualification. She has gone on
to do a teaching certificate, so I do not feel that I need
to declare an interest, but at many of the nurseries where
I have had meetings—particularly among the
outstanding-rated ones—there is concern that they will not
be able to afford to take on the skilled staff they need to
maintain their good ratings. A third of the staff
considered by the Sutton Trust, working in group-based
childcare, lack English and/or maths at GCSE. Those staff
are, unfortunately, the only ones that settings struggling
with costs and underfunding will be able to afford. The
trust’s chair, Sir Peter Lampl, said:
“Good quality early years provision is vital to narrow the
gaps that leave too many youngsters behind by the time they
start school. But it’s unlikely that the government’s
policy to provide 30 hours…will provide this.”
It is a far cry from the high-quality childcare and fully
qualified staff envisaged just a couple of years ago by the
Chief Secretary to the Treasury, when she was
Under-Secretary of State for Education. There seems to be
no emphasis at all in the Government’s policies on quality
of provision or of staffing, and that must be worrying with
respect to children, progress with social mobility, and our
future.
Underfunding of a policy that may have been begun with good
intentions—although it may have been more about votes than
quality childcare—is undermining what is needed throughout
the country. I urge the Minister to look again, especially
at the projected figures for the next financial year, now
that the additional costs of business rates and of the
living wage are clear. I want to thank all those who have
consistently been raising the issue of the problems with
funding, and especially those who set up and contribute to
the “Champagne Nurseries on Lemonade Funding” Facebook
group. They have been tireless champions of the best of
champagne nursery provision, and excellent analysts of the
impact of the funding levels.
I also thank the nursery owners and providers in my
constituency—a rural area on which the policy has had a
great impact. In small rural towns and villages,
childcare—and the knowledge that children can go to nursery
in their community and make friends in their area, without
having to travel long distances—is particularly important.
I particularly thank Kate Sebire, the owner of the
outstanding-rated Sunshine Nursery School in my home town
of Whaley Bridge, who has been bending my ear about the
issue for many months. I hope that the Minister will meet
childcare providers, listen to their concerns, and take
heed of them when he visits the Chancellor for his
pre-Budget discussions.
-
(in the Chair)
I advise Members that there is now a four-minute limit on
speeches, until the Front-Bench speeches begin.
3.28 pm
-
(South Suffolk)
(Con)
I will definitely take only four minutes, Mr Rosindell. I
congratulate the hon. Member for High Peak (Ruth George) on
obtaining what is a key debate. I do not doubt that she has
had feedback; I have had similar feedback in South Suffolk,
where we have excellent provision. It is difficult for me
to avoid receiving representations, particularly from
Yorley Barn, a beautifully located nursery in my
constituency, in a village called Little Cornard. The
proprietor, Donna Row, recently came up and made
representations while I was dropping my three-year-old
twins off at the nursery. She made the key point that she
feels funding is going down while, as has been said, core
costs are rising.
I want briefly to focus on Suffolk, because while I accept
that many broader political and national arguments are
made, there is a national funding formula by which our
county seems to have been particularly disadvantaged. The
sense of unfairness in Suffolk is compounded by what has
happened with the schools formula over the years.
I want to quote from a couple of my providers. A particular
issue in Suffolk has been the drive for graduates in early
years. This is from Springfields pre-school. Amy Jacobs
emailed me to say:
“All research has pointed towards the positive outcome for
children who attend an early years setting that is led by
an early years graduate. Suffolk…were therefore extremely
proactive in encouraging settings to employ graduates to
run their settings. This was supported in the early years
funding and we were paid £4.24 per child per hour in order
that we could pay our staff”
at that rate. She goes on to say that they now receive only
£3.87 per child per hour.
I should add that this is something that all Suffolk
Members have been working on, and I am grateful to the
Minister, who has taken the time to meet us and go through
our concerns with his officials in great detail. We also
held a meeting at County Hall, for which unfortunately I
was ill and unable to attend. However, again, the core
point is that funding seems to be lower at a time when
costs are rising, so we as MPs have been trying to
understand exactly why that is happening and whether it is
driven by factors at a county level or because of the
national formula.
I will quote from one other provider. Cheryl Leeks, who
runs Woodland Corner, said:
“As you are aware, Suffolk County Council reduced our
funding for 3 and 4-year-old children by 11% on 1 April
with only 7 week’s notice. Historically the rate received
from SCC has been higher than the rate we charge for
non-funded children—or additional hours. We were always
keen to have funded children as we used to receive £4.24
and a block funding allowance of £550 per term.”
She goes on to say that only £3.87 per child per hour will
now be provided.
There are complexities—that is showing one side of the
picture—but the key point for us in Suffolk at county level
is that we feel that, in comparison to other counties, and
particularly neighbouring counties, we seem to be doing
particularly badly. Like all Suffolk MPs, I received a note
from Gordon Jones, the cabinet member for children’s
services at Suffolk County Council, with a table of all our
neighbours who get a better allocation than we have
received through the early years national funding formula.
This issue is obviously important to me personally because
I have children in early years, but in Suffolk we have had
a huge amount of feedback from very worried providers. I
support in principle the drive for 30 hours—it is really
important for our economy to achieve the dynamism we want
and flexibility in our labour market that we have this
greater provision—but there are clearly issues to address.
I believe the Minister is aware of that. I do not want to
go on too much longer, because we are in the middle of a
discussion about it with him. I simply say that we would
like him to recognise that there are these pressures not
just of the money going down but of costs going up.
-
(in the Chair)
Order.
3.32 pm
-
(Stockton North)
(Lab)
I congratulate my hon. Friend the Member for High Peak
(Ruth George) on securing the debate. Though I now have the
role of shadow pensions Minister, it is children’s issues
that are closest to my heart. I considered it a privilege
to work alongside the former Member for North West Durham,
, on the Childcare Bill Committee when the hon.
Member for East Surrey (Mr Gyimah) was Children’s Minister.
That Bill led to the Childcare Act 2016 and the launch of
the 30-hour childcare offer.
The Minister then chose to ignore statements not just from
Labour Members but from providers and charities across the
piece that there was insufficient rigour built into the
planning for the 30-hour offer. So it has proved to be the
case. I well remember one particular exchange I had with
the Minister about the need for flexibility in the
childcare system, where I sought assurances that parents
would be guaranteed the free care they required without
having to subsidise it. We have heard how parents are
subsidising that care. I was hoping he would legislate
specifically to require local authorities to have a duty to
secure specific provision to meet the individual needs of
parents and guarantee that local authorities would have the
resources. He said:
“I feel strongly that setting out in primary legislation a
requirement for local authorities to secure provision to
meet each parent's individual needs will not work in
practice.”––[Official Report, Childcare Public Bill
Committee, 10 December 2015; c. 104.]
Sadly, for parents, we were right in demanding such a
requirement because, across the country, countless parents
and their children are missing out. Had there been a
requirement, perhaps the many people who have missed out
because they did not know about the provision or how to
access it, would have had the support they needed.
This morning I spoke to the manager of the church-based New
Life Children’s Centre in Billingham in my constituency,
who told me that it had to coach many parents through the
Government’s system, and that many others had lost out on
their first three months because they missed the
Government’s deadline. Her colleagues at the nearby
Billingham nursery also spoke of the lack of information
provided to parents, many of whom discovered almost by
accident that they could access the 30 hours. Perhaps the
Minister could tell us what flexibility is being offered to
parents in all settings so that they can opt for provision
early morning, or at teatime perhaps, to fit in with their
work patterns.
On the Bill Committee, we also discussed costs and the need
to ensure that the fee structure was developed to reflect
local need. We knew that costs were different in different
parts of the country. I do not know what work the Minister
did after that before moving to his prisons job, but
funding is failing to deliver what is needed. We only have
to think about children with a disability. People in my
constituency and across the country tell me that they are
the people who are having the most difficulty in trying to
secure a place for their child. Again, during the Bill
Committee I sought assurance from the Minister that the
parents of children with a disability would not be
disadvantaged in the system. He was confident in his
response. He said:
“By having tax-free childcare and the high needs block, and
also by having increased the hourly rate, we will ensure
that local authorities continue to have the flexibility to
target funding where it is most needed”.—[Official Report,
Childcare Public Bill Committee, 8 December 2015; c. 32.]
It is simply not happening. His confidence was somewhat
misplaced, as parents of children who have a disability are
still the ones most likely to struggle more to secure
nursery provision.
It is all too easy to say that local authorities have the
flexibility to ensure that all needs are met. My
understanding is that they do not, particularly when it
comes to finding the right placement for children with a
disability. I ask the Minister to go back, look at the
extra barriers facing such parents and find ways to deliver
for them much more comprehensively.
The early years will determine the academic achievements of
children as they get older. I really worry about those in
my constituency and across the country who come from the
most deprived areas. They are the children who need the
support the most and who are being left without the
necessary support. I hope the Government will take a long,
cold look at what is happening on the ground and take the
necessary action to get it sorted out.
3.36 pm
-
(Enfield,
Southgate) (Lab)
It is a pleasure to serve under your chairmanship, Mr
Rosindell. I congratulate my hon. Friend the Member for
High Peak (Ruth George) on securing this important debate.
The issue of properly funded, decent childcare has a huge
impact on families in my constituency and across the
country. It would be good to be able to welcome the
Government’s actions on that and their commitment to 30
hours’ free childcare, but I see, from talking to both
parents and childcare providers in my constituency, that
there are clearly serious problems with the proposals and
how they are being implemented.
First, the funding is simply inadequate. The shortfall in
the Government’s commitment is detrimental to childcare
providers. Last week, I spoke to the manager of a
successful and popular nursery in Enfield Southgate. She
told me that the Government’s plans make her fearful for
her business. The inadequate money from the Government will
put a terrible strain on the way in which her nursery is
run. She told me that parents who used to pay for her
nursery privately are now accessing the 30 hours’
childcare, but the shortfall in money from the Government
to fund that will put wages and staffing costs under
considerable strain. She also told me that if she were to
decide not to offer the 30 hours to parents, she would lose
out to other companies that will be offering it.
That hard-working nursery manager feels caught in a double
bind: does she offer the 30 hours’ free childcare and risk
her business making a loss, or does she avoid offering it
and go under because others, who doubtless feel similarly
trapped, will be offering it? We know from the excellent
research done by my hon. Friend the Member for Batley and
Spen (Tracy Brabin) that the fears of that nursery manager
are not the exception; they are now the rule. Research also
shows that three quarters of childcare providers expect the
Government’s policy to have a negative impact on their
business; fewer than 7% believe that it will be positive.
The Pre-school Learning Alliance estimates that there is a
20% shortfall between the amount the Government are giving
local authorities to fund the scheme and the actual cost to
nurseries.
Worse still, the Government are proposing that funding
levels will stay the same until the end of this Parliament,
even though the cost of wages, rents, pensions and much
more are likely to rise during that time. Why should
nursery managers and childcare providers such as the one I
referred to in Enfield Southgate shoulder the financial
risk caused by the Government’s ill-considered plans? The
proposal of free childcare is far from free if hard-working
childcare providers are carrying the cost, to the extent of
even being put out of business. That is not to mention the
anxiety and disruption caused to parents and children when
a trusted childcare provider goes out of business,
sometimes at short notice. If the 30-hour offer is to be
truly free for both parents and providers, it must be
funded properly now and in the future.
The other serious flaw in this pledge is that it will not
help those who need it the most. I know from talking to my
constituents that many parents welcome the prospect of 30
hours’ free childcare, especially those who are struggling
in low-paid, insecure work. However, those who need help
could easily slip through the net with this scheme, not
least because of the many technical problems that parents
are experiencing. After having huge technical problems
accessing the scheme, one constituent contacted me last
week to say:
“This is the government’s flagship childcare scheme and
it’s an utter shambles with no prospect in sight of a
resolution.”
Even more disturbing is the fact that to be eligible for
the scheme, a parent must earn more—
-
(in the Chair)
Order. There is a four-minute time limit. I call .
3.40 pm
-
(Blaydon) (Lab)
I thank my hon. Friend the Member for High Peak (Ruth
George) for her very clear explanation of some of the
issues facing this sector and the concerns of many
childcare organisations about the impact of the funding
regime. We heard also about the real costs of employing
staff, which are increasing, and about the pilots. As late
as 31 August this year, the Pre-school Learning Alliance
was drawing attention to the funding concerns of many
providers. I thank my hon. Friend for her speech.
I want to talk about a nursery in my constituency. Bright
Sparks Nursery in Crawcrook contacted me to explain its
concerns about the funding arrangements for the
Government’s 30 hours’ free childcare scheme and how that
will bring financial difficulties for the provider and have
an impact upon what it can do for children. Bright Sparks
has been established for nearly 40 years and has been
consistently rated outstanding by Ofsted, as well as being
very popular with local parents. The nursery tells me that
it has always offered the funded hours and wants to do the
very best for the children there but is struggling with the
new scheme due to the lack of funding in the formula.
Bright Sparks charges an hourly rate for three and
four-year-old children of £5, and the basic rate locally is
£3.85. The nursery gets an uplift from a quality payment,
but even then, it is short of 70p per hour, per child in
providing the nursery service. Every child is accessing
funding in the nursery, which makes a massive difference,
and Bright Sparks is now having to work with fewer staff
and be less flexible in the sessions it can offer, to the
detriment of the families that this policy is supposed to
help. As a term-time only, school-hours setting, it does
not have the flexibility to recoup money through other
payments and is really concerned about its long-term
viability under this scheme.
As we have heard, many nurseries and childminders have
already closed their doors because the scheme simply does
not add up. Bright Sparks fears the impact of this funding
shortfall and says that it does not want to be another
casualty of this Government. It wants to carry on providing
high-quality childcare but needs to meet its essential
costs.
Having accessible and affordable childcare is really
important to families across the UK, but a policy that does
not recognise the real cost of high-quality nursery
provision risks reducing the availability of childcare
places near to where parents and children live and near to
communities, and I fear it will be counterproductive. I ask
the Minister to look again at the funding arrangements to
ensure that nurseries such as Bright Sparks can continue to
operate and achieve high standards for children.
3.44 pm
-
(Colne Valley)
(Lab)
I thank my hon. Friend the Member for High Peak (Ruth
George) for giving us the opportunity to debate this
important issue.
When a family are spending a majority of their income on
childcare, something has to give. We continuously hear how
we should be more economically stable in work than out of
work, and I am sure we all agree with that. However, that
means that we need childcare that is accessible and there
for families when they need it. With wages stagnant, and
dropping in real terms, 30 hours a week of free childcare
would save the average family £5,000 a year. This policy is
a positive step in the right direction for families, and I
welcome it.
We need childcare that is affordable and people not being
priced out of the market; childcare that works for parents,
families, and most of all, children. Children learn through
interaction, play and exploration, and early years
education is fundamental for a child’s development. Every
child matters—rich or poor, from north or south, from the
country or the city. Each and every one of those children
deserves the best start in life. I think we all agree on
that, so why are we allowing parents and families to be
priced out of early years education, when we all understand
that it is vital?
We need to recognise that many families are still unable to
access the 30 hours of free childcare. With cuts to local
authorities and education budgets, the Government are,
unfortunately, failing these families and children. Those
children will fall behind other children in their academic,
social and emotional development. With cuts and closures to
Sure Start centres—I speak as a former headteacher of a
school with a Sure Start centre—our most vulnerable
families are now without the necessary support and early
intervention that they could rely on under a Labour
Government. The Conservative party said in its general
election manifesto that, by September 2017, three and
four-year-olds would be receiving free childcare, yet we
have still not had a full roll-out of the policy. On top of
that, local providers in my constituency of Colne Valley
tell me that it is time-consuming to administer the
entitlement.
We need to recognise that many families in areas where the
roll-out has taken place have had issues accessing the
portal to register. From the perspective of Kirklees
Council, there remains a lack of clarity about what
childcare providers can charge for as an optional extra,
and what constitutes a condition of access. That limits the
opportunity for local authorities to champion the rights of
parents and families. Prior to the full country roll-out,
those issues need to be resolved, to make sure that those
families who can be in receipt of 30 hours of childcare can
access it. We need a childcare provision that works for the
many, not the few.
3.48 pm
-
(Eastbourne) (LD)
It is a pleasure to serve under your chairmanship, Mr
Rosindell. I congratulate the hon. Member for High Peak
(Ruth George) on her heartfelt speech, which was also
accurate in highlighting some of the challenges that this
project faces.
I put my cards on the table: I think this is a great
project. It is something myself and other parties were
excited about when it launched, because it is something
that myself and my party have been advocating for a long
time. I was consequently disappointed that the Government
are trying to introduce what is essentially a Rolls-Royce
programme, but not with Rolls-Royce-adequate funding. My
fear is that, if we do not get this tremendous programme
right—it is supported across the piece and across the
political parties—for the sake of essentially 42p to 48p
per child per hour, the programme could crash.
If the programme crashes, it could be a long time before it
is picked up again, not because of a lack of will among the
other parties—I know Labour has been pushing for this
programme for a long time—but because the industry will be
so badly fractured and morale so damaged that I am not sure
it will be ready to pick itself up.
I believe that that is quite possible. Recent research
shows that 56% of nurseries think they could be out of
business in the next 18 months. Let us say, for the sake of
argument, that a quarter are affected. If 12%, 15% or 18%
of a sector closes its doors and drops out of business,
that is a car crash. That is a matter of tremendous
urgency, and I urge the Minister to get behind it and to
talk to his colleague the Chancellor in the Treasury.
I know the Minister from my previous time in the House, and
I have a lot of respect for him. I know that he is
passionate about this issue. Although I am sure he will
deny it, when he stands up at the end of the debate and
says that everything is fine, it is all going to be cushty
and nobody is complaining, I know that he will know that is
not true. Knowing the Minister from before as I do, my view
is that he would support me in the submission that that
extra x number of pence—I know it is multiplied many
times—would make a considerable difference to this
programme.
-
Mr Goodwill
I know the hon. Gentleman is talking about pence, but is he
aware that a 10% increase in funding would be well in
excess of £250 million per year?
-
I am well aware of that. I would say to the Minister that
if the whole programme crunches and 20%, 18% or 25% of the
providers drop out of the business there will be no
business for our children. Truly, I believe that £250
million split across that sector, particularly for
something as important for our children and their future,
is a price worth paying.
Time is always limited in these debates, so I ask the
Minister to consider three proposals seriously. First, will
he meet with representatives from the childcare provider
and nursery sector, and also from independent providers? In
my Eastbourne constituency I know many of the independent
providers. They are Ofsted-tested, professional, trained
women, half of whom, frankly, I can see pulling out of the
industry as independents in the next nine months if the
situation is not sorted. Will he meet with representatives
from the sector, both nurseries and independent
childminders?
Secondly, will the Minister also commit to listen to those
representatives and to explore how much additional funding
would be needed to just make this programme work? We
appreciate that it is early days, but there are always
teething problems when things start up—do not even get me
going on universal credit, or I will be here all day—and if
the Minister met with the people who know how much
difference the finances would make, that would be terribly
useful.
Last but not least, will the Minister reconsider giving
providers flexibility when they make that offer to parents?
If they have that little bit of flexibility, they can put
on the paper, “This is how much extra we would charge you;
you would get this.” I will tell the Minister what happens
when they do not have that flexibility: people have to be
disingenuous, and I do not like that. I know a lot of the
childcare providers and the independents. They are
honourable people who care passionately for what they do.
If they do not continue being disingenuous, what then? They
will go bust—
3.53 pm
-
(Ipswich) (Lab)
Happy Tots is a charity-run pre-school in east Ipswich,
which has been successfully running for over 30 years. The
pre-school has approximately 75 on its roll—there are
morning and afternoon sessions for 38 children aged between
two and five—and it employs 16 staff. Last year, it was
awarded Millie’s Mark for inspiring excellence in
paediatric first aid—the only pre-school in Suffolk to hold
the award.
Happy Tots has told me that, to implement the 30 hours, it
will have to lose some of the places for children who are
already attending, as it is unable to recruit sufficient
additional staff. Even if it were able to do so, it would
need to expand its premises to accommodate the extra child
hours, and there are no suitable larger premises in the
area into which it could move. It has been looking for
larger premises that it can afford for over three years,
without success. Any larger premises locally are at a
higher rate of rent, which, as a charity, Happy Tots would
not be able to afford. Unlike some private providers, it is
not able to cross-subsidise its places from paid
placements. It is clearly wrong that any provider should
have to cross-subsidise anyway, but for those charity
providers in deprived areas where that is not an option,
the current proposals will threaten their very
existence—exactly the opposite of the Government’s declared
intention to improve provision for deprived areas.
The £3.87 per child, per hour that Happy Tots will receive
under the new funding arrangements is a 25p drop from the
existing funding. It may be forced to close the pre-school
if it suffers the financial losses that it is expecting.
The only way that it can try to ensure that that does not
happen is by asking parents—most of whom would expect their
children to receive free school meals once they are at
school—for termly snack contributions. It is divisive and
unjust to expect them to have to pay more for their younger
children or, even worse, decide that they are unable to
pay, and face the stigma of being parents who cannot
provide for their children.
Like my colleagues, I fully support the concept of
expanding the availability of childcare, but these
proposals are rushed, ill thought out and likely to reduce
the availability of childcare, not increase it.
3.56 pm
-
(Stalybridge and
Hyde) (Lab/Co-op)
I thank my parliamentary neighbour, my hon. Friend the
Member for High Peak (Ruth George), for securing this
debate, because investing in quality, sustainable and
affordable childcare is, quite simply, the best investment
a country can make. It enables children to excel and fulfil
their potential, and parents to get out to work and fulfil
theirs. It enables communities to become more economically
active and more highly skilled, and offers the taxpayer
immediate savings in benefits expenditure and in the
long-term cost of the NHS, the education system and so on.
I am not usually delighted by Conservative manifestos, but
when the Conservatives added a pledge of 30 hours a week of
free childcare to their 2015 manifesto, I have to confess
that I was delighted to see them nick one of Labour’s best
commitments. It meant that, whichever party won the
election, childcare was about to become more affordable and
more accessible for struggling parents. If ever we should
have consensus in an area, it is in this one.
As a parent of a nursery-age child myself, I declare an
interest. I have also put three older children through
nursery, so I can absolutely relate to the thousands of
parents for whom the costs of childcare push household
finances to the brink. As Members of Parliament we are all
paid on very generous terms, but even so, when my youngest
two children were in nursery at the same time, the monthly
bill came to more than our mortgage, so the need to get
this policy right is paramount. That is why I am so
bitterly disappointed that the Government have failed to
put their money where their mouth is.
I asked parents and childcare professionals in my
constituency to send me their early experiences of the
policy. Three clear problems emerged: first, local
nurseries and childminders have an unsustainable raw deal
financially; secondly, the registration system is chaotic
and unfit for purpose; and finally, the eligibility
criteria for the scheme are far too strict.
Let me start with the terrible deal that nurseries have
been dealt and the dire consequences of that. The amount
that the Government have given local authorities to provide
these supposedly free hours is simply not enough. It does
not cover the cost of wages, premises, utilities, food or
learning resources. One outstanding nursery told me that it
was losing £500 per year for every free 15-hours place.
That will double to an impossible loss of £1,000 per place
when extended to 30 hours.
Nurseries that offer the 30 free hours are left at risk of
closure because they lose money for every hour’s childcare
they provide, but nurseries that do not offer them are at
risk of closure because parents will, understandably,
choose to go elsewhere. Almost all nurseries are therefore
being forced to cut costs, and it is children who pay the
price. Given that there is a proven link between the amount
that staff are paid and the likelihood of a nursery being
rated outstanding, a race to the bottom is clearly bad news
for staff, kids and parents alike.
The registration system for parents is far too complicated.
My constituent Cat applied online in April. The nursery
asked for her code, which had not yet been provided. That
code took 10 days to arrive, by which time the nursery was
told that it had expired. She has repeated the process
several times now, with endless phone calls and emails, and
is now anxiously waiting to find out whether her
application for her child’s place has been successful. That
seems a bizarre set of hoops to have to jump through to
gain a funded place at a nursery her child is already at.
I have constituents who are not entitled to these free
hours because the Government do not deem them to be
eligible. They include John and Nicola Andrews from
Dukinfield. John works full time, but Nicola is a trainee
midwife. Although she works an excess of 40 hours a week
practising and studying for the NHS, because that is
unpaid, she is not deemed to be a fit candidate for free
childcare. This woman is working hard in a valued public
service, but we are not going to help her with her
childcare—Minister, that is wrong.
Likewise, I have constituents not in work who would like to
return but cannot apply for jobs and attend interviews
without childcare being in place. We should simply be
offering free hours to parents whether they are in work or
not, which is the Labour party policy and should become the
Government’s policy too.
Minister, please listen to these concerns. Do not hide
behind reports from two years ago. This is a mess and it
needs to be sorted out for a better deal for parents,
providers and, most importantly, children up and down this
country.
4.00 pm
-
Dr (Central Ayrshire)
(SNP)
Obviously, everyone in this room welcomes the expansion of
childcare to 30 hours, but we are hearing that entitlement
to that is only if someone is already working. As the hon.
Member for Ipswich (Sandy Martin) said, if someone is
trying to get work they get caught in this trap where they
cannot accept a job because they do not know whether they
will be able to organise childcare.
That is one of the differences with the Scottish scheme,
which also aims to provide 30 hours; but that is 30 hours
across the board, whether someone is working or not. Our
approach is partly to help more people into work, but is
particularly about looking at it as early learning rather
than just childcare. We all face the attainment gap,
particularly in the most deprived areas, and lots of
research shows that it is already embedded when a child
enters primary school. We blame primary and secondary
schools for trying to swim against the tide. The aim is
that all three and four-year-olds will have 30 hours of
accredited nursery places. That is also for vulnerable
two-year olds, because the earlier we can interact with
those children, the more we can try to make up for the
situation that they find themselves in.
-
I welcome what the hon. Lady says about the need for early
learning as opposed to babysitting. She will recognise that
the Sure Start system that we developed in England was a
tremendous success. We are now seeing the data, with
headteachers saying that the children arriving in school
are more equipped and school-ready than ever before—all the
more reason why we must get this policy right as well.
-
Dr Whitford
There is no question about that. My son was in the first
year of a four-year entry. The teacher noticed a difference
in not having children crying and wetting themselves,
totally shocked at being at school, because they had
already had a gentle year in nursery. Therefore, when they
started school, they went straight into learning. That is
available earlier: we have it for three and four-year-olds.
However, at the moment, 16 hours is not enough for people
and it is not flexible enough. Increasing that to 30 hours
and putting it across the board means that more women in
particular can use it to get into work, by having it in
place already, and we can invest in the early years
development of our children.
Any of us with children know that raising them is
expensive, and unfortunately families have taken quite a
big hit. With the reduction in things such as tax
credits—the limitation to the first two children, for
example—it has never been harder for families. It is often
forgotten that tax credits are for people who work, not for
people who are unemployed. We often seem to forget that in
these debates. There are many hard-working families who are
struggling. As mentioned by the hon. Member for Colne
Valley (Thelma Walker), this could save up to £5,000 a
year. That is a significant difference; but it is only a
difference if someone can find a place. Therefore, if half
the nurseries shut, it will be an almighty crisis. If
parents have to pay for meals and other trimmings around
the edges of the nursery, it is not free at all. In fact
people will be hit by that who would not previously have
been hit, so some people will be worse off.
We are doubling the funding. The minimum in Scotland will
be £4.30 an hour, and the average will be £4.94 an hour,
because ours is predicated on the real living wage, not the
national living wage. That is the other thing when we talk
about entitlement and the quality of nursery education. If
there is just a revolving door of people who put up with it
and put up with the low wages until they can get something
better, we will never grow a profession that is aimed at
developing the early years of our children.
We need to get ready for this. Obviously, we are having to
expand this out—we need far more places than we have at the
moment—so this will be workforce skills development
funding. We need more diversity. Some 96% of those who work
in early years are women. There are many children who have
no good male role models in their lives, and we need to get
more men into nursery and primary school to help to provide
that. We should have a diverse workforce. There is funding
to bring in over 400 more graduates to our nursery
provision, because we want this to be about early learning,
not just racking and stacking children so that their
parents can be at work; that will not achieve what we are
setting out. It is important that there is that investment
in the workforce.
The most important thing is the empowerment of women to get
back to work. That can get women out of the poverty trap.
We already save them money. We in Scotland have the highest
employment and lowest unemployment rate among women, but
there are still women trapped. I remember offering a job to
a woman recently. When she looked at all the sums, it was
not doable, and the big piece that held her back was her
childcare. That will be happening all over the place. This
has to be dealt with. In Scotland we have 14 pilots on
flexibility going ahead. Many Members have mentioned how
inflexible the system is.
I worked as a senior registrar, as a surgeon. I was the
first flexible surgical trainee in Scotland. I was paid 21
hours; I worked 50. That is fairly standard in the NHS. By
the time I paid a nanny, because I needed to be on the ward
shortly after seven, I took home less than unemployment
benefit, because I needed to pay her a decent rate. We had
to accept that for my career to go forward we had to ride
through that and accept the debt, but many of these
families cannot afford to work for nothing or less than
nothing. If they have a job that has antisocial hours, long
hours or is all spread at one end of the week, we need to
have that flexibility. We have 14 pilots looking at a whole
lot of versions, but the principle is the money follows the
child, so that if a family need mix and match, they can
have mix and match. That will also allow a quicker
expansion. Empowering women and bringing them in will also
support the economy.
We have all these brains across the country: people with
talent, who have been highly educated. We spend maybe a
decade bringing up our children and then do not get back
into the workplace. We do not have wraparound childcare for
school. We need to invest in women because they are also
part of the country’s future economy.
There are things that we are trying to do in Scotland.
Things are being discussed here. But if we are going to do
this, we have to do it properly.
4.07 pm
-
(Batley and Spen)
(Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr
Rosindell. I thank my hon. Friend the Member for High Peak
(Ruth George) for securing this much needed debate. We have
heard some interesting and important contributions. I will
just go through a few of them; unfortunately, time does not
allow me to mention everyone.
My hon. Friend the Member for High Peak powerfully claimed
that the pilot schemes were not actually working as the
press said, and that there were nursery closures. The hon.
Member for South Suffolk (James Cartlidge) acknowledged
that there is a problem and tried to understand why. The
hon. Member for Eastbourne (Stephen Lloyd) would like to
meet the Minister and providers. We heard from my hon.
Friends the Members for Ipswich (Sandy Martin), for
Stalybridge and Hyde (Jonathan Reynolds) and for Stockton
North (Alex Cunningham). We also heard a powerful statement
by the hon. Member for Central Ayrshire (Dr Whitford)—I
look forward to my invitation to Scotland to see. We also
heard from my hon. Friends the Members for Enfield,
Southgate (Bambos Charalambous), for Blaydon (Liz Twist)
and for Colne Valley (Thelma Walker), who gave all sorts of
information about portal difficulties and nursery managers
saying that they will be closing.
We have had a wide-ranging debate, so I am going to use my
contribution to touch on the most pressing issues. I hope
that the Minister will use his closing remarks to answer in
detail—regrettably, getting clear information from him to
date has been slightly challenging to say the least—because
both the Labour party and the Conservatives agree that we
need more funded childcare. I stress that the problems
raised with the policy are not because we disagree with the
policy in principle. However, nearly as soon as announced the offer at
the 2015 general election, worries that it was underfunded
came to light. The Government pushed on the delivery, and
the voice of concern about the potential impact became
louder.
The Pre-school Learning Alliance found a 20% funding
shortfall. The Social Market Foundation and the New
Economics Foundation have said that this version of free
childcare is regressive. Research from Ceeda shows that
nearly half the childcare settings are currently recruiting
staff, but four out of five say that they are struggling to
fill vacancies. If this were any other industry, we would
be talking about a recruitment crisis. The Sutton Trust has
warned that, as it stands, the 30 hours of free childcare
offer widens the gap between disadvantaged children and
their wealthier peers before they start school, as it
benefits wealthier families. The Social Market Foundation
shows that of the extra money that the Government are
pumping into early years, 75% is being spent on the top 50%
of earners and less than 3% will go to the most
disadvantaged. Many providers have left or are in the
process of leaving the sector. Will the Minister include in
his summing-up how many Ofsted good or outstanding
providers have left the sector in the past six months?
We are now well into the first term of this policy, and the
Minister has told us that 216,384 parents have their codes
for this term. However, just last night he told me via a
written answer that 71% of parents had had their codes
validated, but the Department for Education claims that the
figure is now 90%, so which is it? Do we take the
Minister’s word or the Department’s? I would welcome an
intervention if he could clarify which is correct. If the
figure is 90%, that leaves 20,000 children without a place
during this August term, which will obviously be the
quietest, as more children come of age later in the year.
Does the Minister share our concern that the sector will
struggle to provide places as the year rolls on, because of
lack of funding?
We have talked about signing-up codes. To deal with an
eligibility code, the application system has to be fit for
purpose, which it clearly was not as the August deadline
approached. The system’s inadequacies have left parents
stranded. There is confusion between Her Majesty’s Revenue
and Customs and local authorities as to when the deadline
for validating the code is. A constituent of mine has a
code that is eligible until 7 December, but as she did not
receive the code until 15 September the local authority has
said that it cannot fund her place, and all the while HMRC
is telling her that there is no problem and that she should
be receiving her place. There is no clarity even on issues
as simple as the deadline. It seems like amateur hour to
me.
Variations from local authority to local authority are
becoming a theme, with one authority planning to retain
some disability access funding even though that should be
passed on in full to providers. Another local authority is
charging a provider for every minute that parents dropped
off late and collected early, with the charges amounting to
£4,000. Others require all providers offering funded places
to receive an annual visit from the local authority’s early
years team, which is what we all thought Ofsted was
supposed to be there for. Getting payment out of local
authorities is proving a struggle. Issues include refusing
to pay monthly, bringing headcounts forward at short notice
and requiring new email addresses and bank accounts in
order for payments to be received.
The Minister knows full well that that is not an acceptable
way to treat small businesses and microbusinesses. An issue
that I have raised with him is that settings will charge
for extras such as trips out, nappies and lunches in order
to pay their staff and keep the lights on—to stay afloat.
Can he guarantee today that there will not emerge a
two-tier system whereby parents who cannot afford to pay
for the extras do not have access to the policy? Does the
Department intend to monitor the additional charges placed
on parents, and will he commit to reporting on that? Will
he consider a cap on those charges, or will it be a case of
parents who cannot afford the extras being sent to the end
of the waiting list?
If there is one thing noticeable by its absence, it is that
the Minister never wants to talk about the quality of
childcare. The Labour party has a policy to move to a
graduate-led workforce and to put child outcomes at the
heart of early years policy, by funding our policies
properly. It is curious to me that the Conservatives do not
have the same goals. Often, the highest-quality provision
comes in the form of maintained nursery schools, many of
which are seeing numbers drop, as they cannot offer 30
hours because of the cost of lunch provision. Nursery
schools, which are often in the most deprived areas,
provide excellent care, closing the gap between the most
deprived children and those more fortunate.
Many children from deprived communities currently have
access to quality nursery schools that employ qualified
nursery school teachers. Those schools do a tremendous job
of enhancing those children’s life chances, but they assure
me that they will not be able to fund the continued
employment of those qualified teachers. It is important
that we distinguish between childcare and early years
education. Save the Children is concerned that 40% of
nurseries that took part in the pilot reported a loss in
profits and, therefore, a threat to their sustainability.
When I asked how many children were registered with
maintained nursery schools for this academic year, the
Minister was unwilling to share that information. Will he
do so today?
When the Minister last spoke in the Chamber, he mentioned
that he would like to get the 5,500 dormant childminders
“back into that business”, but how will he do that if their
wraparound care is not necessarily part of the 30 hours
provision? Childminders are often highly qualified women
with a level 3 national vocational qualification who have
been Ofsted-assessed. I have been told categorically by a
number of constituents that the county council funding
provided means that they will go bankrupt. They are just
going to throw in the towel—why bother?
I encourage the Minister to think again about a major
injustice to childminders in this roll-out. His Department
has relaxed the parent-child ratio for childminders who
provide wraparound care. Is it the Government’s intention
to relax that further in an attempt to make the funding
work? Is that the way forward for childminders? How many
freelance working parents have been excluded from the
entitlement because they cannot guarantee that they will
work more than 16 hours a week on the national minimum
wage? The reality for many working parents in my
constituency is that their employers will not guarantee
them those hours, and nor can they, which makes it even
harder for parents to return to work.
In the Chamber, the Minister said:
“There are colleagues in the House from places such as
York, Northumberland”—
he goes on to list them—
“which have been in the pilot for a year. I have not heard
a peep from anyone saying that the scheme is not working,
so obviously the pilot has been successful.”—[Official
Report, 6 September 2017; Vol. 628, c. 173.]
As my hon. Friend the Member for High Peak mentioned, those
nurseries are having trouble squaring the circle. When
papers, experts, providers and think-tanks all say that the
policy is not sufficiently funded to work, surely it is
time to reassess and ramp up the finances so that it is
properly funded?
I have been startled by the number of providers who have
said to me that they will not be able to take on children
who need extra support. If such a child presented, they
would put the child on a waiting list or gently suggest
that there might be a better setting for them. That is
discriminatory, but not unexpected when nurseries are
budgeting to try to stay afloat, rather than to offer the
best, most comprehensive service.
In conclusion, there is little doubt that the 30 free hours
of childcare will be a welcome relief to many parents. It
will bring childcare costs down for many parents,
particularly at the upper end of the income scale, as
research by Nursery World and the Resolution Foundation
found recently. However, there is no getting away from the
fact that this policy is chronically underfunded. No matter
which way we look at it, providers are going to pay the
price. The sector is known for its quality and passion—it
transforms young people’s lives—and if the Government put
that in peril with this policy, I suspect that they will
not be forgiven lightly. As the Minister is well aware,
tens of childcare providers are in this Chamber who would
like to hear his views. Will he rethink his offer to come
and meet them, as he originally intended?
-
(in the Chair)
Does the hon. Member for High Peak wish to exercise a short
right of reply at the end?
-
Yes, if there is time.
4.19 pm
-
The Minister for Children and Families (Mr Robert
Goodwill)
I will make time for the hon. Member for High Peak (Ruth
George) to respond. I congratulate her on securing this
important debate and thank her for contributing to the
debate on the urgent question on 6 September about the 30
hours of free childcare. I welcome her involvement in the
all-party group on childcare and early education, and look
forward to attending its meetings in due course.
I almost feel as if I am living in a parallel universe. I
spend a lot of time visiting nurseries; indeed, yesterday I
met someone who owns six nurseries in the south of England
that are engaged with the scheme and delivering childcare
on the basis of it.
-
I think I mentioned the parallel universe to the Minister
in the Chamber. The nursery provider in his example has six
nurseries and may be able to square the circle, but we are
also concerned about the smaller providers.
-
Mr Goodwill
Precisely. Indeed, the proprietors of many smaller
providers often work in their nursery, so their costs are
not necessarily higher.
There has been some confusion about the number of children
who are eligible. Children become eligible as they turn
three. We predicted that there would be approximately
200,000 eligible children in September, followed by another
100,000 or so after Christmas and Easter. Those are the
figures that we have always borne in mind. We also
estimated that only about 75% of parents would apply for
the scheme—a similar figure to the proportion of more
disadvantaged families who apply for the free 15 hours of
care for two-year-olds.
-
Will the Minister give way?
-
Mr Goodwill
May I make some progress? A lot of points have been made in
the debate, and I would like to answer some of them.
I am sure that all hon. Members present join me in
acknowledging that, for many families with young children,
childcare is not just an issue, but the issue. In many
cases, the costs of childcare are a huge barrier to work,
particularly for those in lower-paid jobs. Some parents
still spend over a third of their take-home pay on
childcare—and when I say childcare, I mean good-quality
early years educational experiences. Indeed, 93% of the
delivery is good or outstanding.
The Government’s priority is to ensure that parents who
want to work after having children can do so, and that the
cost of childcare is not a barrier. We therefore delivered
in September on our promise to double the free childcare
available for working parents of three and four-year-olds.
We are also supporting parents with childcare costs,
through working tax credits and universal credit—where up
to 85% of the costs are covered—and tax-free childcare,
which provides a 20% subsidy that is worth up to £2,000 per
child per year and up to £4,000 per year for disabled
children. That answers the point made by the hon. Member
for Stockton North (Alex Cunningham) about particular help
for disabled children.
-
Will the Minister give way?
-
Mr Goodwill
I have very little time left, so I will make some progress
now and give way at the end if I have time.
The Government are committed to giving every child the best
start in life, whether their parents work or not. The 30
hours of free childcare are helping the lowest-paid working
parents to manage their finances and have more money left
over for their children’s needs. A lone parent needs to
earn only around £6,500 a year to access the 30 hours of
free childcare. Parents can apply for the 30 hours if they
have a job offer; in answer to the hon. Member for
Stalybridge and Hyde (Jonathan Reynolds) and the SNP
Front-Bench spokesperson, the hon. Member for Central
Ayrshire (Dr Whitford), I can confirm that we can issue a
code on the basis of a job offer even when Her Majesty’s
Revenue and Customs has no track record of a person’s
income.
-
Dr Whitford
The problem is that a job may start quite quickly. Having a
ticket does not mean that someone has found a place. That
is the advantage of already being in a place.
-
Mr Goodwill
As the hon. Lady points out, we have tranches of entry, so
anyone who has an offer in August for a job that will start
in September could get a code. The situation is similar for
people who want more hours. We have been as flexible as
possible in ensuring that those codes can be given. We take
people’s word for it that their job offer is real, but when
they confirm the code it becomes apparent.
This provision builds on the existing 15 hours a week of
high-quality early learning that workless households of
two, three and four-year-olds are entitled to. We know that
starting education early makes a difference to long-term
attainment and earnings, and that work is the best route
out of poverty to transform children’s life chances. I
heard this week from a school principal who had supported
parents of two-year-olds getting the free hours to retrain
and take up employment when their child became eligible for
30 hours. That is a fantastic outcome from a programme in
its infancy. The 30 hours is making a real difference.
-
I cannot believe that the Minister is not receiving
representations that list the problems with this policy.
Let me give him an example that I could not fit into my
speech in the time available: my children’s school is
ending free provision for under-fours, because the funding
simply does not work as it has worked in the past. There is
actually a net reduction in provision. Is he honestly
saying that he is not receiving messages like that from
around the country?
-
Mr Goodwill
I am surprised to hear that from the hon. Gentleman,
because Tameside council in his area received a 25%
increase in the hourly rate given after our review. We are
putting our money where our mouth is.
As hon. Members will know, we rolled out the policy with a
pilot that delivered for 15,000 children, and on 1
September, we rolled it out nationally, so that all
eligible parents could join the 15,000 families in our
pilot areas already benefiting from 30 hours. As expected,
demand for the 30 hours offer has been high, and more than
216,000 parents have successfully received eligibility
codes for the autumn term. I am pleased to be able to
update the House: 90% of those codes have been checked by a
provider on behalf of a parent seeking a 30 hours place.
That is up 19 percentage points from 71% when I last
reported, which is fantastic progress.
Of course, that figure may still continue to increase
slightly, but I want to be clear that I do not expect it to
reach 100%, because we cannot predict parents’ choices and
situation. People’s circumstances will change. Not every
person who successfully applied for a 30-hours code will
decide to seek a free place for their three or
four-year-old. Some parents will want to stick with a
provider who does not offer 30 hours; other parents who
applied for tax-free childcare and were eligible for 30
hours and who were issued a code will not want to take up
that place because they might use the tax-free childcare
offer. The figure may increase slightly, and I will keep
the House updated.
-
Before the Minister concludes, I would like him to return
to provision for disabled children. I accept that there is
additional money in the system that was promised, but
provision simply is not ramping up to the extent needed.
What more can the Minister do, beyond funding, to encourage
providers to give us facilities for disabled children?
-
Mr Goodwill
Children with special needs certainly need special
provision, and we are keen to ensure that we can continue
to deliver that. As we move from the old statements to
plans in mainstream education, it is proving an effective
way to identify the children most in need. We must also
consider how to help those in their early years as well.
-
Will the Minister give way?
-
Will the Minister give way?
-
Mr Goodwill
No. I have very little time—three minutes—and I need to
make a few points.
I am hearing fantastic individual stories showing the
extraordinary impact that 30 hours childcare is having on
families up and down the country. For example, a local
employer in Staffordshire recently told us that parents who
work at their factory no longer have to hand over their
children in the car park as one parent clocks off and the
other clocks on. Families like that are now enjoying family
time together, rather than passing each other like ships in
the night.
I will quickly cover one or two of the points made in the
debate. The hon. Member for High Peak and the hon. Member
for Colne Valley (Thelma Walker) mentioned nurseries no
longer being able to charge for lunches or additional
hours. That is not the case. The early education strategy
guidance is clear that providers can charge parents for
meals and consumables, and for hours outside the free
entitlement. Parents must not be required to pay any fee as
a condition of taking up a free entitlement place. Many
parents with a long working day need additional hours, and
the system includes great flexibility,
-
I thank the Minister for giving way. Does he intend to cap
those costs? Such charges will be what keep nurseries’
lights on and their staff employed. Will there be a
two-tier system, and will he cap the costs?
-
Mr Goodwill
Nurseries are entitled to charge for additional hours and
meals, nappies and other consumables, and they are free to
charge what they wish, but a parent with a code can shop
around and get a place that meets their exact requirements.
As I said, 90% of the codes issued have now been taken up
by providers. We are seeing many flexible arrangements: for
example, a nursery and a childminder may work together to
deliver provision.
I must conclude, but there are a number of other points
that I would like to have made. I will write to hon.
Members to answer their specific points when I get the
opportunity. I am proud of how the 30 hours childcare offer
is transforming families’ lives. Parents up and down the
country are enjoying more time with their children, more
money in their pockets and less stress because the
programme is cutting the cost of childcare. I hope that the
hon. Member for High Peak has a few moments for a
winding-up speech.
4.29 pm
-
I thank all my colleagues who have made such excellent
speeches and good points. I simply ask the Minister to
revisit the costings and meet providers to learn from them,
especially those in outstanding settings employing graduate
and fully qualified staff in order to provide the
best-quality childcare.
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