My Lords, I am pleased to answer this Question for Short Debate. It is widely acknowledged that the first five years of a child’s life are critical: they are the foundation years, shaping their development and preparing them for school. The noble Lord, Lord Parekh, is correct in saying that speech and language gaps appear by the age of two and that early difficulties with language can affect pupils’ performance throughout primary school, with impacts being felt into adulthood. This Government are determined to close this gap and improve social mobility, extending opportunity to all. I agree with the noble Lords, Lord Storey and Lord Watson, and the noble Baroness, Lady Warwick, that the evidence consistently tells us that early years provision can have a positive and lasting effect on children’s outcomes, future learning and life chances. And I agree entirely with my noble friend Lord Griffiths that the role of parents in a child’s development is also crucial.
We have already taken a number of steps towards improving the quality of early education and outcomes for children, as well as the affordability of childcare for families. To provide some reassurance to the noble Lord, Lord Storey, and the noble Baroness, Lady Warwick, by 2019-20 we will be spending around £6 billion a year on childcare support, a record amount. Our offer to families includes the 15-hour entitlement for disadvantaged two year-olds, the 15-hour entitlement for three and four year-olds and, more recently, the additional 15 hours for three and four year-olds with working parents. This is on top of the support being provided through tax-free childcare and universal credit. As well as giving children the best possible start in life, these entitlements, particularly 30 hours of childcare, are also reducing the childcare costs for working parents. The noble Lords, Lord Storey and Lord Watson, may know that a lone parent has to earn only around £6,000 a year to be able to access the 30 hours of free childcare.
The noble Lord, Lord Parekh, is correct in saying that Ofsted last week released new data confirming that in 2017, 94% of early years and childcare providers are now rated good or outstanding, the highest proportion ever recorded. This is an increase of 20% since 2012. On outcomes, the noble Lord, Lord Parekh, might be interested to know that the latest results from the early years foundation stage profile assessment, which measures children’s development and school-readiness at the end of reception, tell us that children’s development is also improving. The number of children achieving a good level of development at the end of reception continues to increase year on year—71% in 2017, up from 52% in 2013—but we are not complacent. We recognise that there are challenges and remain committed to continuing to improve the quality of early education so that children can achieve the best possible outcomes. We are doing this in a number of ways: from support for workforce development to improvements in literacy and language teaching and monitoring the impact of 30 hours of free childcare, as well as ensuring that children with special educational needs and disabilities can access early education provision.
The noble Lord, Lord Addington, and the noble Baroness, Lady Warwick, are concerned about workforce training. The evidence is clear that a high-quality early years workforce can have a major impact on children’s outcomes. A well-qualified workforce with the appropriate knowledge, skills and experience is crucial to deliver high-quality early education and childcare. In March 2017 we published the Early Years Workforce Strategy, which outlines the Government’s plans to help employers attract, retain and develop early years staff to deliver high-quality provision. We are working closely with employers and training providers to strengthen level 2 qualifications and ensure that they better support practitioners’ progression to level 3 and beyond. We will be consulting on the proposed criteria for the new level 2 qualifications shortly. A new level 3 apprenticeship standard, designed to support the effective development of early years practitioners, is also near completion.
We continue to support graduates into the sector through our funding of the early years initial teacher training programme, including bursaries and employer incentives. I am also pleased to announce that we have recently established a new working group of early years stakeholders to consider how we can improve gender diversity in the sector. This group includes practitioners, training providers, unions, academics and employers. We believe that a diverse early years workforce that reflects wider society will help to enhance children’s experiences.
Research shows that five year-old children who struggle with language are six times less likely to reach the expected standard in English at age 11 than children who have good language skills at that age. At the Conservative Party conference in September, we announced a number of actions to tackle this astonishing finding. We will provide more funding to help schools strengthen the development of language and literacy in the early years, with a particular focus on the reception year. This includes establishing a £12 million network of English hubs in the northern powerhouse to spread effective teaching practice, with a core focus on early language and literacy as their first priority.
In September this year we also announced that we would take steps to improve the early years foundation stage profile, including reviewing what is assessed at the end of reception. We will be working closely with schools and early years experts as we implement these changes. It is important that we get this right, so changes will not be rolled out nationally until the 2020-21 academic year. We have also put in place measures to ensure children with special educational needs and disabilities have access to high-quality education. The new disability access fund is worth £615 per year per eligible child, paid to the provider. We have required all local authorities to introduce inclusion funds to support children with special educational needs.
Turning to the concern of the noble Baroness, Lady Warwick, our total hourly average funding rate for two year-olds has increased from £5.09 to £5.39 from April 2017. All local authorities have seen increases in their rates for two year-olds. We are also investing in the early years pupil premium to support better outcomes for three and four year-olds. This is worth over £300 per year per eligible child.
The department’s Review of Childcare Costs took into account future cost pressures facing the sector, including the national living wage. Our average rates to authorities compare favourably with recently published research into the hourly cost of childcare by Frontier Economics, as part of a study of early education and development.
We are committed to evaluating the impact of 30 hours’ free childcare. The evaluation of the early delivery areas published in July and August this year did not find any impact of 30 hours on the universal 15-hour offer. Building on this, the department is in the process of commissioning an evaluation study to assess the implementation and impact of the policy in the first two terms of national rollout.
The noble Lord, Lord Storey, and the noble Baroness, Lady Warwick, raised the issue of Sure Start centre closures. It is up to local authorities to decide the best solutions for their area. They are best placed to understand local needs and how to meet them. Where councils decide to close a children’s centre, they must demonstrate that children and families, particularly in the most disadvantaged areas, will not be adversely affected and that they are still meeting the duty to have sufficient children’s centres to meet local demand.
The noble Lord, Lord Addington, raised issues around children with special educational needs. We are doing several things in this area that he may be aware of. The first is the introduction of the new phonics screening check for children in year 1, which should pick up those children struggling with early literacy. We are funding the special dyslexia trust to raise awareness and support for parents and schools, and are working with the National Association for Special Educational Needs and other experts in the sector to ensure that schools have access to the Inclusion Development Programme training materials on dyslexia and other common forms of special educational needs.
Several noble Lords, including the noble Lords, Lord Parekh and Lord Watson, raised concerns over foster children accessing childcare. Children in foster care are already entitled to the universal 15 hours of free childcare. Carers also receive funding and support for the care of their foster children, including a national minimum allowance and favourable treatment in the tax and benefits system. We are in the first term of the 30 hours’ free childcare offer and will continue to keep the policy under review to see how it is working for families, including children in foster care.
The Minister has basically repeated the Answer to my noble friend Lord Beecham’s Written Question that was given this week. The basic question is: why should there be any difference at all? Foster children are allowed the 15 hours but not the 30 hours; ordinary children who were allowed the 15 hours have moved on to 30 hours. Why is there a difference?
My Lords, it might be useful to write to the noble Lord, Lord Watson, to set out our thinking. At the moment I do not have the detailed information to hand, but I will do that.
In closing, I thank noble Lords again for their contributions to this important debate today. Many important points have been raised and I will write to address any of those that I have not had time to respond to fully. The Government are very clear that the early years are a critical time which influences outcomes for children and their families. We have achieved a huge amount, but there is still a lot more to do, particularly to close the gap between disadvantaged children and their peers. We remain committed to continuing to improve the quality of early years education to make sure that every child improves their life chances and has real opportunities to realise their potential.