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It is a pleasure to serve under your chairmanship, Mr Gray.
I congratulate my hon. Friend the Member for Winchester (Steve Brine) on securing this important debate, which comes during the APPG’s Childcare and Early Education Week. I know—I can get the sense from Westminster Hall today—how passionately all Members care about this issue. Given the importance of this sector, I welcome the awareness of it that this week will rightly bring. I am very keen to meet the APPG; I am sorry that we could not make that happen today, due to pre-existing commitments. Nevertheless, I am very keen to meet the members of the APPG and to work with them in the future.
I thank all hon. Members for their contributions to the debate, which have been constructive and thoughtful, and for the points they have made. I will endeavour to respond to as many as I can during the course of my response, conscious that we will have a Division in about 10 or 15 minutes.
I put on the record my and the Government’s sincere thanks and appreciation for the hard work, dedication and compassion that early years educators show every day. Despite the turbulence over the course of the pandemic, they have continued to keep our children safe and learning.
The early years experience is a vital part of a child’s education, as so many Members have set out today, that develops cognitive, social and emotional skills that set them up for life. Those who work in the sector are rightly passionate about those issues, and I have seen that at first hand. I have only been in my role as Minister for Children and Families since September, but I have visited numerous early years settings, and it is one of the best bits of the job. Every single one is a truly uplifting and inspirational experience, and I look forward to many more. A visit is always full of laughter, because the children come out with the funniest things—I forget, because mine are a little older now. We also see the passion and dedication of the staff, as well as their love, care and compassion—it is overwhelming.
Evidence shows that high-quality childcare supports children’s development, prepares children for school and, of course, allows parents to balance work and family life. We are doing more than any previous Government to ensure that as many families as possible can access high-quality and affordable childcare. I am proud of the progress that the early years sector has made in recent years. In 2019, nearly three out of four children achieved a good level of development, compared to around one out of two in 2013. In 2021, 97% of providers were rated good or outstanding by Ofsted, which was up from 85% in 2015. I am sure that Members will welcome that considerable progress.
It is important not to be complacent, and I will certainly not be. We must build on that excellent performance by the sector, particularly in the current tough circumstances. The question is, how can we do better, because we can do better? In my opinion, and my hon. Friend the Member for Winchester set this out elegantly and articulately, the answer is people. It is all about people who are educators. As of spring 2021, there were 62,000 providers offering 1.5 million Ofsted-registered childcare places in England, with almost 330,000 educators in those settings. The majority of educators work in group-based settings, or for such providers, with 16% in school-based settings—as my hon. Friend the Member for Bury South said—
North, I apologise to my hon. Friend the Member for Bury North (James Daly)—I should not have got that one wrong! I will address his point later.
A further 12% are childminders and assistants. The expertise of those educators is our greatest asset in ensuring that early years provision is of the highest quality. We must invest in the workforce, and that is exactly what the Government are doing. I will set out how in more detail later.
I now turn to some of the specific points made in the debate, before going on to some of the broader themes. My hon. Friend the Member for Winchester, in his constructive contribution, had a quote—
“we would be lost without these people. They are truly amazing”—
and I could not agree more. I have—from next week—a 10-year-old and a six-year-old. Recently, they have been through numerous childcare settings. I understand the importance of the settings and how vital they are not only to the parents, but to the children. They love—I use that word deliberately—the people who look after them in the day, those educators in the early years settings.
We have to address how the profession is viewed and valued—as educators and more than just childcare. My hon. Friend was absolutely right about that, and I will come on to it. He started and finished his speech with how early years staff are educators; early years is far more than just childcare. I totally agree, and I look forward to working with him and the APPG to see what more we can do in that area.
The hon. Member for Strangford (Jim Shannon) talked about the work we do with the devolved Administrations. A huge amount of work goes on at the level of officials. I have to confess, I have not yet met my counterpart to discuss this issue, but I very much look forward to doing so.
The hon. Member for Twickenham (Munira Wilson), who is not in her place but to whom I will respond none the less, raised the vital issue of speech and language. We have created the professional development programme and we have put a lot of emphasis on speech and language, because of its importance. We invested an extra £27 million, as part of the £180 million recovery programme. We also have the SEND review and, as part of that, it is vital that we have early identification and early intervention. It is important that that happens in early years settings wherever possible.
On the point about SEN provision, I have been contacted by a nursery in Barnsley which provides support—one-to-one support, in many cases—for children with SEN. It is worried that a number of nurseries are having to turn away children because there simply is not the funding. My local council has a deficit of £11 million, which is set to double in the coming years. What are the Government doing on SEN generally, and more specifically on funding?
The hon. Lady is right that there are significant issues within the SEND system, which is why we have the SEND review. There are local authorities with significant pressure on their budgets. We are putting more money into the high-needs budget—about 10%, year on year—but we are conscious that money alone will not solve the issue. That is why we have the SEND review. I am working at pace on that as we speak. The SEND review will conclude and we will launch a Green Paper and a consultation by the end of March, so within the first quarter of the year. The hon. Lady’s point is well made.
My hon. Friend the Member for Truro and Falmouth (Cherilyn Mackrory) mentioned people leaving the profession. I will come back to that point, because it is really important. Recruitment and retention are key. I hear her call about the pilots in Cornwall and I will certainly look into that; I am always keen to visit Cornwall, whenever possible, so I will bear that in mind.
My hon. Friend also mentioned a largely female workforce, which is something I want to address. I want to see more men working in early years settings. It is really important. As my hon. Friend the Member for Winchester referenced, the Government want families to stay together wherever possible. Where they do not, there is not necessarily a male role model in the household, so it is really important in education settings that there are good male role models for children to look up to. We have the Pulse survey, which monitors the private, voluntary and independent sector. We meet with the sector regularly to keep on top of these issues.
My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) mentioned ratios, which I will come on to very briefly. I assure him that local authorities can retain only 5% of the funding allocated; they have to pass the rest on. My hon. Friend the Member for Northampton South (Andrew Lewer) referenced the whole-child approach, the first 1,001 days and family hubs. I recognise that he welcomes the £300 million investment that the Government are making in this area.
Numerous hon. Members mentioned funding. I agree that high-quality childcare supports children’s learning and development and prepares young people for school, as well as having a huge impact on later outcomes. That is why the sector is working really hard to support children and their parents. It is also why the Government have spent more than £3.5 billion in each of the last three years on early education entitlements, and we will continue to support families with their childcare costs.
As my hon. Friend the Member for Winchester rightly pointed out, we announced additional funding of £160 million for 2022-23, £180 million the year after and £170 million the year after that, compared to the current year. That is for local authorities to increase the hourly rates paid to childcare providers and reflects the cost pressures that are anticipated and the changes in the number of eligible children.
So what does that mean? For 2022-23, we will increase the hourly funding rates for all local authorities—by 21p an hour for the disadvantage entitlement for two-year-olds in the vast majority of areas and by 17p an hour for the entitlement for three and four-year-olds.
I want to come on to the point about recruitment and retention, because they are really important.
If the hon. Lady will give me time, I will come back to that point if I can.
Recruitment and retention are really important. Early years provision in 2021 was delivered by an estimated 328,000 staff. The majority of providers work to the required staff to child ratios for each age group, with some providers reporting that their ratios are more generous than the statutory minimum. We recognise that recruitment and retention are key issues for the sector, and local authorities are reporting significant pressures on providers. Importantly, we are working with the sector to build our understanding of the situation and how we might better support providers. We have commissioned qualitative research interviews on the theme of the early years workforce and a survey on the impact that covid is having on the workforce. We are working closely with the sector to identify some of those issues.
To aid recruitment and retention, we have also invested £153 million in programmes to support workforce developments as part of the £180 million package that I referenced. However, I hear what my hon. Friend the Member for Winchester said about the pressures and the questions he rightly raised about salary and how that impacts on recruitment. I will continue to listen to him, the all-party parliamentary group and the sector.
On ratios, the statutory framework for early years foundation stage sets out the staff to child ratios to help ensure that there is adequate staffing to meet the needs of, and to safeguard, children. They assume that the youngest children are the most vulnerable—I think that is the right approach—and need the greatest number of staff, but providers may need more staff where other needs are identified—for example, special educational needs. The Government are committed to working with the sector to support covid recovery, as well as on the broader concerns.
I want to clarify that there is a difference in ratios between England and Scotland, and I will look at that closely, but I assure all those who have raised the issue of ratios that I will always take an evidence-based approach. I will be very careful and considered in the way that I approach this and I will always put at the heart of this issue the needs of children and young people and the safeguarding of children. I will of course work with the APPG.
My hon. Friend the Member for Stroud (Siobhan Baillie) referenced military-style childcare planning. I very much recognise that myself. Childcare costs and pressures are acute for many families. They are the second highest cost only to their mortgage or rent. We recognise that and it is something I am looking at that closely as part of my portfolio. I am interested to hear about her work on the universal credit offer. At the moment, the take-up for that is, frankly, too low.
With regard to maintained nursery schools, the points were well made and I echo the comments made about the late Member for Birmingham Erdington, Jack Dromey, who was a passionate advocate in this area. He last raised this with me just before Christmas and his voice will be sorely missed. The funding rate for maintained nursery schools will increase by 3.5% next year. That gives them the long-term certainty that they asked for. However, I recognise that they have some unique characteristics, such as a headteacher and a special educational needs co-ordinator, so I am looking at this closely and I will raise this with the Treasury.
Finally, I will touch again on SEND, which is absolutely a passion of mine. As part of the SEND review, we have to get early identification and early action at the heart of that. The earlier we identify the need, the better the support we can put in place, giving parents confidence, but most importantly, providing better outcomes for children and young people with special educational needs.
To close, I am enormously grateful to my hon. Friend the Member for Winchester for the support he has given this agenda today and to all those who have contributed to the debate. The steps we have taken underline the importance of early education and the role of educators in that sector. The Government have made a substantial financial commitment that will in decades to come provide the workforce with the skills and expertise to ensure that no child is left behind. I look forward to continuing to work with my hon. Friend, the APPG and the sector to progress these issues further.