Small Business, Enterprise and Employment Bill Debate
Full Debate: Read Full DebateDepartment: Department for Education
Baroness Jones of Whitchurch
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Small Business, Enterprise and Employment Bill
Baroness Jones of Whitchurch Excerpts(9 years, 9 months ago)
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“(7) The Secretary of State shall make arrangements for a review of the impact and appropriateness of the reduction of the age threshold for childcare provision in a school setting in terms of—
(a) contribution to child development,(b) suitability of facilities and accommodation, and(c) maintenance of child protection standards.(8) The Secretary of State shall lay a report of the findings of the review mentioned in subsection (7) before each House of Parliament within 18 months of section 64 coming into force.”
Baroness Jones of Whitchurch (Lab)
My Lords, this amendment seeks to explore in more detail with the Government their plans to extend childcare provision for two year-olds going into schools. Clearly, we all support the principle of increasing childcare places for two year-olds but we would like more reassurance on the practicalities and appropriateness of very young children being cared for on school premises.
First, is this practical? The Government’s Childcare and Early Years Providers Survey shows that more than 90% of two year-olds who receive 15 hours of free early years funding are provided for by the private, voluntary or independent sectors. When this issue was debated in the Commons, the Minister confirmed that, although it was estimated that, by the end of the academic year, around 80,000 two year-olds would benefit from the expansion of free childcare, it was not known how many of these additional places would be in schools rather than the private or voluntary sector. Meanwhile, we know the truth that there is a massive squeeze on primary school places because of expanded school rolls, so space is at an absolute premium. Indeed, recent reports show that there is a 10% shortfall in available places for the upcoming primary intake, and the number of infants in classes of more than 30 increased by 200% since the last election. It is hard to imagine that the Government’s proposals are going to make a big difference to the number of two year-olds able to be accommodated in schools.
The Parliamentary Under-Secretary of State for Schools (Lord Nash) (Con)
My Lords, I thank the noble Baroness, Lady Jones, for her amendment in relation to Clause 72 and I am delighted to be able to speak about this measure, which will reduce the bureaucratic burden on schools.
Amendment 35AA would lead to a review of the impact and appropriateness of the changes resulting from Clause 72. The intention, as I read it, is that it would be an additional safety net. While I understand these concerns, I would like to reassure the noble Baroness that some 300 schools are already providing high-quality education for two year-olds. We believe that the evidence is clear that primaries running nurseries employ higher-quality staff and it is clear that that results in better outcomes for pupils. It results in better transition for pupils and enables the primary schools to get to know the parents at a younger stage in the child’s development. High-quality checks and balances are already in place. We therefore believe this amendment is unnecessary.
Like any other provider of early years childcare, schools must adhere to the standards set out in the EYFS framework. This is the case for schools that already accept two year-olds and will continue to be the case once the clause comes into force. The framework clearly sets out requirements and standards for learning and development, safety and well-being of children and the appropriateness of accommodation—all the issues, in fact, that this amendment seeks to cover. We have seen how this is working in practice. We ran a demonstration project with 50 schools that take two year-olds. That showed how schools, just like nurseries, carefully manage their provision for two year-olds alongside other nursery-age children—for example, having separate parental access arrangements, accommodation and play areas. What these schools have shown is that some mixing of two year-olds with three and four year-olds has benefits to both year groups, as long as it is managed appropriately. This provision is not forcing schools to do this. There are no targets for the numbers, but we want to make it bureaucratically easier. Schools are already held to account by Ofsted for delivering age-appropriate, EYFS-compliant provision.
As I said, schools are, in fact, already doing a very good job. Of the 294 schools that were accepting funded two year-olds in January 2014, 81% were rated good or outstanding by Ofsted, as of August 2014. That is the same figure for primary schools overall and compares well with other early years providers, 80% of which were rated good or outstanding.
Clause 72 will not introduce something new. Rather, it will just remove the bureaucratic burden of separate registration for two year-olds while keeping the rigour of Ofsted inspections—holding schools to account against the same standards as they currently are. Since Ofsted’s recent introduction of a separate early years judgment for schools, the ability of a school to provide quality early education will be assessed very clearly against these standards with a discrete judgment and wording. This is why we believe that we already have the systems in place to continue to ensure high-quality provision and the safety and well-being of children, including two year-olds, in schools, without the need for this separate review.
I hope that the noble Baroness has found my explanation reassuring and, on this basis, will withdraw her amendment.
Baroness Jones of Whitchurch
My Lords, I thank the Minister for his response. We understand the advantages of removing the bureaucratic burden of having to register separately. We were trying to extend the debate beyond that into some of the other consequences of it. From listening to what the noble Lord has said, he is really implying that, although that bureaucratic burden might well be reduced, they are therefore not expecting a huge expansion of these places, which was my challenge to him. How many extra school places are to be created by this measure? It might reduce the bureaucracy, but it is not going to facilitate a great swathe of extra places. Given that, my challenge to him was that all of the available spaces were being used by the expanded need to fill primary school places.
I understand the need for the initial reduction. We think this situation needs to be kept under control and under review, but I think that will be an ongoing process. At the moment, I am very happy to withdraw the amendment.
“Staff to child ratios: Ofsted-registered non-domestic childminder
(1) This section applies to Ofsted-registered, non-domestic childcare settings.
(2) For children aged under two—
(a) the ratio of staff to children must be no less than one to three;(b) at least one member of staff must hold a full and relevant level 3 qualification, and must be suitably experienced in working with children under two;(c) at least half of all other members of staff must hold a full and relevant level 2 qualification;(d) at least half of all members of staff must have received training in care for babies; and(e) where there is a dedicated area solely for children under two years old, the member of staff in charge of that area must, in the judgement of their employer, have suitable experience of working with children under two years old.(3) For children between the ages of two and three—
(a) the ratio of staff to children must be no less than one to four;(b) at least one member of staff must hold a full and relevant level 3 qualification; and(c) at least half of all other members of staff must hold a full and relevant level 2 qualification.(4) Where there is registered early years provision, which operates between 8 am and 4 pm, and a member of staff with Qualified Teacher Status, Early Years Professional Status or other full and relevant level 6 qualification is working directly with the children, for children aged three and over—
(a) the ratio of staff to children must be no less than one to 13; and(b) at least one other member of staff must hold a full and relevant level 3 qualification.(5) Where there is registered early years provision, which operates outside the hours of 8 am and 4 pm, and between the hours of 8 am and 4 pm where a member of staff with Qualified Teacher Status, Early Years Professional Status or other full and relevant level 6 qualification is not working directly with the children, for children aged three and over—
(a) the ratio of staff to children must be no less than one to eight;(b) at least one member of staff must hold a full and relevant level 3 qualification; and(c) at least half of all other staff must hold a full and relevant level 2 qualification.(6) In independent schools where—
(a) a member of staff with Qualified Teacher Status, Early Years Professional Status or other full and relevant level 6 qualification;(b) an instructor; or(c) a suitably qualified overseas-trained teacher is working directly with the children, for children aged three and over—(i) for classes where the majority of children will reach the age of five or older within the school year, the ratio of staff to children must be no less than one to 30;(ii) for all other early years classes the ratio of staff to children must be no less than one to 13; and(iii) at least one other member of staff must hold a full and relevant level 3 qualification.(7) In independent schools where there is—
(a) no member of staff with Qualified Teacher Status, Early Years Professional Status or other full and relevant level 6 qualification;(b) no instructor; or(c) no suitably qualified overseas-trained teacher, working directly with the children, for children aged three and over— (i) the ratio of staff to children in early years classes must be no less than one to eight;(ii) at least one member of staff must hold a full and relevant level 3 qualification; and(iii) at least half of all other members of staff must hold a full and relevant level 2 qualification.(8) In maintained nursery schools and nursery classes in maintained schools (except reception classes)—
(a) the ratio of staff to children must be no less than one to 13;(b) at least one member of staff must be a school teacher as defined by section 122(3) of the Education Act 2002 (power to prescribe pay and conditions) and Schedule 2 to the Education (School Teachers’ Qualifications) (England) Regulations 2003 (qualified teacher status requirements); and(c) at least one other member of staff must hold a full and relevant level 3 qualification.(9) The Secretary of State may make provision in statutory guidance to—
(a) define qualifications as “full and relevant”; and(b) define “suitable experience” for those working with children under two.(10) If HM Chief Inspector of Education, Children’s Services and Skills is concerned about the quality of provision or the safety and wellbeing of children in a setting, he may impose different ratios.”
Baroness Jones of Whitchurch
My Lords, Amendments 35Y and 35Z place in the Bill the current permitted staff:child ratios for childminders and nurseries. We believe that these amendments are necessary because of this Government’s public statements and attempts in the past to increase the ratios. This would be all too easy, as the current ratios are in regulations that can be changed by the Secretary of State. We are therefore keen to provide the necessary reassurance and guarantees to parents and professionals alike that the current ratios are safeguarded.
When it was proposed to change the ratios there was a massive outcry from across the sector. It was felt that this move would compromise quality and put children’s lives at risk. As a result, the Government backed down, but there is a real concern that, in a drive to increase the supply of early years places, the Government might revisit their original plan. We believe that the current ratios have stood the test of time in balancing the quality of provision with the costs to providers and, therefore, parents. We are all concerned about the rising cost of childcare in this country, which continues to be a barrier to parents returning to work and a major source of family poverty. The Government’s proposals to offer 15 hours of free childcare and our own proposals to expand free childcare for three and four year-olds from 15 to 25 hours per week for working parents are beginning to address the cost of childcare. However, it is crucial that, in the bid to expand childcare provision, quality is maintained and improved.
Professor Nutbrown, who advised the Government on early years provision, has made it clear that she would not support an increase in the ratios. She quite rightly made it clear that good-quality provision is directly related to the qualifications and training of the staff involved, as well as their capacity to relate to the children on an individual basis. This is crucial to the well-being and development of young children. Our proposals would ensure that a single childminder could care for up to six children aged eight, including a maximum of one baby under 12 months and another two children under the age of five. By anyone’s imagination, that would be quite a workload and it would be a challenge to provide appropriate care across the age groups. For nurseries, there would be one member of staff for every three children under two, one member of staff for every four children aged two or three, and one member of staff for every eight children over the age of three. We would also set out in regulations the minimum qualifications for these staff members. Again, these ratios as they stand sound fairly challenging.
These ratios are not just necessary to support the crucial period of early years development, with all the complexities that we were debating in the Chamber last week; they are also necessary to provide safeguarding and protection for vulnerable children. We are all saddened when we hear of unnecessary deaths when children are in the care of others. It can happen in an instant—one child wanders off or puts something in their mouth without being observed. Nursery staff already work under considerable pressure, and we should not be tempted to add to it. We believe that it is necessary to protect the current ratios and that putting them in primary legislation will provide the guarantee that, if any changes are proposed in the future, they will be subject to full parliamentary scrutiny and debate. I beg to move.
Lord Nash
My Lords, I thank the noble Baroness for her Amendments 35Y and 35Z relating to staff:child ratios.
The provisions in the Bill are about opening up new business opportunities for childminders by allowing them to work on non-domestic premises for up to half their time. This will be welcomed by both childminders and parents. For example, small rural schools may welcome the additional flexibility of bringing in a childminder to run a small after-school club, providing a new and valuable service for working parents. We are not trying to change the fundamental nature of childminding; we are simply giving childminders more flexibility in how they operate their business.
The Government consider it right that all registered early years childminders should meet the same early years foundation stage framework requirements around child development, welfare and well-being, including ratio and qualification requirements , whether they are working on domestic or non-domestic premises. The safety of children is paramount. The English childcare system has some of the highest adult:child ratio requirements in the world. I can tell the noble Baroness that we have no plans to amend the ratios. We think that the current ratio for childminders of 1:6 is right and this is already set out in the early years foundation stage statutory framework, made under powers in the Childcare Act 2006.
These amendments seek to enshrine those ratios and minimum qualifications in primary legislation. The Government consider secondary legislation to be the right place for this. Other ratios, relating to welfare requirements, are also set in secondary legislation and this allows the flexibility to respond to changing circumstances if necessary.
On the matter of defining qualifications and “suitable experience” for those working with children under two, I assure the noble Baroness that existing regulation-making powers already allow terms such as “full and relevant” and “suitable experience” to be defined. There is no need for further legislation on this matter.
The Government are committed to ensuring that childcare places remain of the highest quality, as these have lasting benefits for children. We believe that continuing to ensure that childminders and other providers of childcare meet standards set out in the early years foundation stage is the best way of doing this. I hope that the noble Baroness has been reassured by my response and will be content to withdraw her amendment.
Baroness Jones of Whitchurch
My Lords, I am grateful to the noble Lord for his response. He said that there were no plans to amend the ratios at the moment and I am sure that that is the case. However, we were doing some future planning, thinking about what might happen in the future, and trying to ensure that there were further guarantees going forward.
The Minister talked about the advantage of the provision being in secondary legislation as allowing more flexibility in changing circumstances in future. That is precisely our concern—that in future, if there is a need for changing circumstances of the kind that I addressed in my opening remarks, such as the need to increase places at short notice for three year-olds or four year-olds, this would be exactly the sort of measure that the Government might bring back into play, given that they have considered it in the past. We believe that there is still merit in having this in primary legislation, if only because, if there were any suggestions of change being necessary, it would enable proper parliamentary scrutiny to take place so that it could not be done simply by the Secretary of State. This may be an issue to which we return. For the time being, I beg leave to withdraw the amendment.
“(2) In section 118 of the Education and Inspections Act 2006 (functions of the Chief Inspector), after subsection (1)(d) insert—
“(e) the quality and appropriateness of the facilities and premises used by registered providers of early years childcare.””
Baroness Jones of Whitchurch
My Lords, this amendment follows on from our earlier amendment on the proposed expansion of childcare places in schools. At its heart is a desire to ensure that all premises where childcare is provided are of an appropriate standard. We remain concerned that the proposed changes allow large childcare providers to register an appropriate facility in one place and an inappropriate facility elsewhere. This might come to light only when an Ofsted inspection takes place, but it might also be missed by Ofsted, as it would not have an obligation to visit every site. Our amendment would give the Chief Inspector of Schools a wider duty to set down the quality and range of facilities for early years providers that would be judged appropriate.
While we understand the desire to reduce regulation on business, we also feel that it is crucial that the quality of childcare facilities is not compromised. I am sure that the Minister would agree that children’s safety should be paramount, but there remains a danger that the registration of multiple sites could lead to fewer individual inspections. When this was discussed in the Commons, the Minister, Matthew Hancock, made it clear that Ofsted would use its discretion on which premises to inspect, using a risk-based model. But however you look at this, it seems to be leading to fewer individual inspections. We are concerned that standards, rather than improving, will, in fact, go down. Our amendment to require Ofsted to lay down some minimum standards goes some way to addressing this problem. I hope that the Minister can agree that this is a sensible way forward and leaves in place sensible safeguards.
Lord Nash
My Lords, I thank the noble Baronesses, Lady Jones and Lady King, for their amendment in relation to Clause 74, and I am delighted to be able to speak about this measure, which will reduce the bureaucratic and administrative burden on childcare providers.
The amendment would place an additional and specific duty on Her Majesty’s chief inspector to keep the Secretary of State for Education informed about the quality and appropriateness of the facilities and premises used by registered providers of early years childcare. The statutory framework for the early years foundation stage is mandatory for all early years providers, including childminders, and already provides for the safety and suitability of premises, environment and equipment. The EYFS is clear that providers must ensure that their premises, including overall floor space and outdoor spaces, are fit for purpose and suitable for the age of the children cared for, and the activities provided, on the premises. Furthermore, the EYFS is clear that providers must comply with the requirements of health and safety legislation, including fire safety and hygiene. Ofsted already inspects all early years providers against the requirements of the EYFS and will continue to do so.
To ensure the safety of children, childcare providers will still be required to obtain approval from Ofsted before they can operate from new or additional settings. Furthermore, Ofsted will continue to inspect all Ofsted-registered early years settings and carry out sample inspections of later years settings, as it does now. However, on adding additional premises to an existing registration, Ofsted can use a risk-based approach to decide whether they need to visit all premises before an Ofsted-registered provider can operate from them. For example, where an outstanding provider is acquiring existing childcare premises which are already registered as an early years setting, Ofsted may decide it is not necessary to visit those premises again until the next inspection.
More generally, if Ofsted receives a complaint or has concerns about the quality and appropriateness of the facilities and premises of any of the settings which it regulates, it has the power to take immediate action and can inspect, investigate and suspend settings where necessary. Section 118 of the Education and Inspections Act 2006, which sets out the functions of the chief inspector, including functions relating to early years provision, already places a duty on the chief inspector to inform the Secretary of State of matters connected with activities within his remit, including quality and standards.
Furthermore, if requested to do so by the Secretary of State, the chief inspector must provide the Secretary of State with information or advice on such matters relating to activities within the chief inspector’s remit as specified in the request. The chief inspector can also give advice on any matter within his remit, including advice relating to a particular establishment, institution or agency. Section 118 is wider ranging than early years functions and it would not be appropriate, therefore, to include such a specific or prescriptive measure about early years premises and facilities. However, as part of his annual report, the chief inspector can also include information on the quality and appropriateness of the facilities and premises where he considers it appropriate to do so.
For these reasons, I do not believe there is a case for placing an additional or specific duty on the chief inspector. I hope that the noble Lady has found my explanation reassuring and, on this basis, will withdraw the amendment.
Baroness Jones of Whitchurch
I thank the Minister for that response. I was with him when he started because I thought he said that what is in our amendment already happens, in which case I would have been very pleased to withdraw it. However, as he went on he began to say that, although this was something that was within the chief inspector’s potential functions, it was not something that was required. I would be grateful if he would clarify what exactly, at the current time, the chief inspector’s responsibilities are. I am not going to argue about whether we have put the amendment in the right place—we may well have put it in the wrong place—but is it part of his current functions to advise on the quality and appropriateness of the facilities and premises used by registered providers? If it is, I will be happy to withdraw the amendment.
Lord Nash
I hope that I can clarify the situation. We are talking about adding additional premises to an existing provider. Of course, these might be premises that have already been used for such provision, or it will be pretty obvious—Ofsted can tell from the information it has—that a provider will be suitable because it is of a very high quality and Ofsted does not need to visit them. Obviously, if it is a new provider or premises which have never previously been used for the purpose, I suspect that Ofsted would want to visit them.
Baroness Jones of Whitchurch
I can see that this might be something that takes a longer discussion, which we may have outside this Room. I was not arguing with what the Minister said, I was just asking whether the more general duty was already on the shoulders of the chief inspector. I am not sure that he clarified that, but I am very happy to have this discussion elsewhere.
“Information sharing for contacting new families
(1) NHS trusts should make arrangements to share with local authorities’ records of live births to parents resident in their area, to be used by the local authority for the purposes of identifying and contacting new families through children’s centres and any other early years outreach services it may operate.
(2) The Secretary of State must, within a period of six months of the passing of this Act, bring forward regulations placing consequential requirements on trusts and local authorities in exercising their duty under subsection (1) including, but not limited to—
(a) the format of arrangements made;(b) the safeguarding of information;(c) the circumstances in which it would not be appropriate for a trust to provide information to local authorities;(d) the regularity of data transfers;(e) timescales within which a local authority must contact new families made known to it; and(f) any further requirements the Secretary of State deems necessary.”
Baroness Jones of Whitchurch
My Lords, one of the lessons we are taking from the increasing body of evidence on early years intervention is that you have to start early. Traditionally, it has been seen that preschool and nursery care was key, but we now understand much more about the situation. The way a child’s brain develops and its physical and emotional development begins to be shaped from the moment of birth and there is a crucial window between the ages of nought and three where development sets up a child for life.
This is why the previous Government set up the Sure Start programme. The aim was to provide a one-stop shop for families and young children to access support and services. But, of course, the key to getting new young parents through the door is to make contact with them and encourage their participation. That is why we proposed in the Children and Families Bill that greater opportunities to register births at children’s centres would provide an excellent way to make the first introductions.
Our amendment concerns one aspect of data sharing: sharing information about live births. The amendment would require NHS trusts to share with local authorities details of live births to parents resident in their areas. We believe that this is an important requirement to provide greater safeguards for vulnerable babies as well as ensuring that local authorities can plan and provide appropriate family services in their areas. They need accurate information on the number of live births as well as the individual details to ensure that the services are targeted effectively. This would also enable children’s centres to improve their outreach work with new families who have not been in contact with them. Arguably, these are the families who are hardest to reach and most in need of support.
I understand that the national picture on this remains patchy. Some health trusts are willing to share this information while others have concerns about confidentiality. We need to address this reluctance to share this crucial information and our amendment provides the impetus to do this.
Obviously, it would be necessary to provide more detailed advice about the amount of detail to be provided and the legitimate uses to which it can be put, and it would clearly be necessary to ensure that the information did not fall into the wrong hands. However, this is a challenge about data sharing that the Government face in numerous aspects of their work. It has been overcome elsewhere and it can be overcome here. So I hope that the Minister can agree to take our amendment on board, recognising the great advantages for child safety and child development that would flow from it.
Also, when we raised these issues during the Children and Families Bill, it was reported that the department was already considering how best to improve this situation. The Minister subsequently wrote to update us on the work of Jean Gross’s task-and-finish group, which was exploring how to overcome these barriers. However, despite welcoming her report, it is not clear whether anything has really changed. There still appears to be reluctance on the part of health trusts and local authorities to facilitate this exchange of information. I would like to ask the Minister for an update from the department on its follow-up to the Gross report and what evidence it has of anything changing on the ground. Otherwise, I hope that he can support our amendment. I beg to move.
Lord Nash
My Lords, I am sympathetic to the aims of these amendments. It is essential that health services and councils collaborate effectively and share information to do that. But we do not think it is necessary to put new requirements in primary legislation. There are no legal impediments to NHS trusts sharing live birth data with local authorities. They are not confidential data. Birth registration data are already publicly available, and local areas should and are using partnership agreements or protocols to make data sharing as effective as possible.
The statuary guidance for Sure Start children’s centres is clear that health services and local authorities should share live birth data with children’s centres regularly. Children’s centres are successfully reaching out to those families most in need, with 90% of eligible families registered. But we are not complacent. We will continue to encourage NHS trusts and local authorities to review and consider their local protocols and practice on sharing information. The Government’s response in November 2013 welcomed the Jean Gross group report on information sharing in the foundation years and our strategic partner, 4Children, is disseminating best practice information. Since we debated similar matters during the passage of the Children and Families Act 2014, we have also commissioned the Royal College of Paediatrics and Child Health to develop training materials to support health professionals and early years practitioners with information sharing. I hope that this explanation reassures the noble Baroness and that, on that basis, she will withdraw her amendment.
Baroness Jones of Whitchurch
My Lords, I thank the Minister for his response. As he said, there is no legal impediment. That is true; indeed, in some areas this data-sharing is already happening. However, the very fact that the department needed a task-and-finish group to look at how this could be boosted is a sign that all is not right in this regard. When the Minister opened his comments, he said that he had some sympathy with our amendment. All it is trying to do is to boost the activity that ought to take place and, as he rightly said, is already enabled to take place within the legislation. It is not happening to the degree that we would like at the moment. Dissemination of good practice is obviously to be welcomed but it appears that there is more to be done on this issue, which feels as if it needs a kick-start. That is really what we were attempting to do in our amendment. I am not intending to pursue it at this stage but there is probably more still that the Government could be doing to encourage live data sharing, on the basis that we have discussed. I look forward to hearing further details of what is being done and the increase that is therefore taking place at a local level of this activity. I beg leave to withdraw the amendment.
“Proposals relating to three and four year olds
The Chancellor of the Exchequer shall within three months of the passing of this Act lay a report before the House of Commons setting out—(a) an assessment of the benefits of top-up payments to people responsible for a child or children aged three to four years since the Childcare Payments Act 2014 came into force; and(b) an assessment of those benefits in addition to the likely benefits of funding 25 hours per week free childcare for working persons responsible for a child or children aged three and four.”
Baroness Jones of Whitchurch
My Lords, Amendment 35AD has been tabled in my name and that of my noble friend Lady King of Bow. This amendment requires the Chancellor to assess the benefits of top-up payments to those with parental responsibility for three and four year-olds. It then requires the Chancellor to compare the likely benefit to those same families of Labour’s policy of funding 25 hours per week of free childcare. Figures from the House of Commons Library show that Labour’s policy will benefit an estimated 436,000 three and four year-olds. In hard cash terms, this means a benefit of more than £2,500 per family who qualify, in addition to top-up payments.
The purpose of the amendment, then, is to get the Treasury to carry out a review of the likely benefits to these families. After all, at a time when incomes of hard-working families are being remorselessly squeezed, do the Government not owe it to those families with three and four year-olds to consider which policies will help them most? Labour’s policy is a fully costed spending commitment, which will be paid for by an increase in the bank levy. We will also introduce a primary childcare guarantee to help parents manage the logistical nightmare of before and after-school care. Again, this is in addition to the provisions made by the Bill.
One of the purposes of this amendment is to highlight the varying benefits to parents of different approaches to childcare provision. The Government’s approach, as the Minister will be very well aware, is demand-led. This means that subsidies such as the Government’s tax-free childcare, where cash support goes to parents and then on to the childcare providers, often leads to those providers simply artificially inflating childcare prices. Instead, the alternative approach of our party is modelled on supply-led government funding for childcare. For example, this would include measures such as extending free entitlement, where support goes directly to childcare providers. This approach has been supported by think tanks such as the Institute for Public Policy Research and the Resolution Foundation. Both these organisations presented evidence, based on international examples, that supply-led models are far more effective at supporting hard-pressed parents than demand-led subsidies.
If the Government will not think again immediately on this issue but are genuine about the interests of hard-pressed working families, they will surely back this amendment to conduct a Treasury review and ensure that we can all share in the facts of the situation. I beg to move.
Lord Nash
My Lords, I am grateful to the noble Baronesses, Lady Jones and Lady King, for their amendment and for the opportunity to debate the important matter of the Childcare Payments Act. As noble Lords will be aware, this Act introduces the tax-free childcare scheme announced by the Chancellor of the Exchequer in his 2013 Budget. Once it is in place, the Government will meet 20% of eligible working families’ childcare costs up to an annual maximum of £2,000 for each child. That is the equivalent of basic-rate tax relief on childcare costs of up to £10,000 per child.
I am aware of the Labour Party’s policy to increase the 15 hours of childcare to 25 hours. The noble Baroness said that this is fully costed and will be paid for by the bank levy. That is interesting, as that would make it the 12th time that the Labour Party has spent this money and therefore it would be totally unfunded. It has also costed the increase at £800 million. However, we believe that it would cost £1.6 billion, and that is on the basis that this extra increase in demand would not put prices up, which providers tell us it would. Indeed, they say that they would struggle to provide these places. We have increased the number of places by 100,000, which is a remarkable achievement, but we do not think that it would be right to put this pressure on the system at this time. It is a question of balance between parental care and childcare.
The amendment concerns the impact of the Act within the context of the Government’s wider track record. It would require the Chancellor of the Exchequer to review its effectiveness and publish his conclusions. The 2014 Act received Royal Assent on 17 December and we now move to the important phase of implementation. I understand the noble Baroness’s desire to debate this matter here, given that the Act was a money Bill with little opportunity for such debate, and I hope that I will be able to reassure her in relation to the amendment.
Amendment 35AD would require the Chancellor of the Exchequer to publish, within three months of the passing of this Bill, an assessment of the benefits of the scheme under the Childcare Payments Act to parents of three and four year-old children. It would also require those benefits to be assessed in addition to the likely benefits of funding 25 hours of free childcare.
This Government fully understand the importance of high-quality early education for this age group. That is why we funded an increase from 12.5 to 15 hours a week of early education for three and four year-olds. However, it is important to recognise that the cost of childcare is not just an issue for children under five but also an issue for school-age children. For many working families, the high costs of childcare make this one of the largest parts of the household budget. This Government believe that there is a powerful case for improving access to childcare throughout childhood to ensure that parents are supported to work if they choose to do so.
The introduction of the new scheme provided for in the Childcare Payments Act for children up to the age of 12 will build upon the £5 billion per year that the Government already spend on early education and childcare. It will help many more parents to meet these costs, including those such as the self-employed, who cannot access support under the employer-supported childcare scheme which it will in time replace.
The Government have already made a commitment to review the impact of the new scheme two years after its full implementation. This was set out clearly in the impact assessment published last year. The scheme will become available only from the autumn of this year, and it is important to allow time for the measures to properly bed in before conducting a review. Therefore, no purpose would be served in carrying out a review so soon.
I hope that the noble Baroness will be reassured that the intention of her amendment is already being met without the need for further legislation. On that basis, I ask her to withdraw it.
Baroness Jones of Whitchurch
I thank the noble Lord for his comments. Interestingly, the Institute for Fiscal Studies says that, of all the parties, our costings are the only ones that have been carefully and cautiously costed. Therefore, I think that we can dismiss the noble Lord’s rather wild, or alternative, calculations. As we know, the Government’s discredited calculations were widely commented on at the time they made them public, so I do not think that there is any credibility in that particular argument.
I welcome the fact that the noble Lord has said that there needs to be a review. We were interested in a review earlier than that two-year cut-off point, as he knows. This issue is crucial and it may well be that two years is too long to let the situation drag on. It is particularly crucial because, as he will again know, a lot of the private nurseries are refusing to take part in the Government’s free childcare offer. It was publicised quite recently by the National Day Nurseries Association that one in seven of England’s 18,000 nurseries are refusing to take part. There is a supply-side problem. On the Government’s figures 41,000 children eligible for the free scheme are yet to find a place.
We are all in favour of increasing childcare and we all have our different models for doing that. We believe that ours is more cost-effective and would be more effective than those proposed by the Government. Anything that invests in childcare is obviously to be welcomed, but, as I say, I believe that our scheme is better costed and would be more helpful to hardworking families in the longer term. I take note of the fact that there will be a review. We would have liked a review earlier, but I am sure that in the mean time there will be lots of public debate about this issue. If there is not an official review we will continue to tease out the issues that arise from the alternative policies. I therefore withdraw the amendment.
“Review of impact on childcare costs
The Chancellor of the Exchequer shall, three months after the passing of this Act, and every three years thereafter, review the impact of measures on the cost of childcare with particular reference to—(a) the effectiveness of the Childcare Payments Act 2014 on making childcare more affordable;(b) the average cost of childcare for parents in work, including the impact of other changes to the tax and benefits system and with reference to the trends in childcare costs since 2010; and(c) the impact of supply-led measures on the cost of childcare.”
Baroness Jones of Whitchurch
My Lords, I rise to speak to Amendment 35AE, tabled in my name and that of my noble friend Lady King of Bow. This amendment requires the Government to go further than review the benefits to families of the fully funded proposals set out by Labour for parents of three and four year-olds. This amendment requires the Chancellor to review the impact of childcare costs in the round.
Neutral observers might be forgiven for thinking the Government do not recognise the current crisis facing working parents with children. The figures, which have been widely quoted, are quite shocking. Since this Government came to power, real wages have stagnated or fallen, yet childcare costs have increased. They have increased by a staggering degree, spiralling by 30% since this Government came to power—five times faster than wages. There has been a childcare crunch. The number of early years childcare places available has fallen by 42,000 across England and vital support for childcare costs have been slashed, with some families losing up to £1,500 per year.
Our analysis of the latest figures from the independent Institute for Fiscal Studies, along with analysis by the House of Commons Library, shows that working families have been hardest hit by this Government’s tax and benefit changes, even taking account of the rise in the personal allowance. For example, a family with both parents in work will be more than £2,000 per year worse off by the time of the next election. Of course, these changes are in addition to the impact of the unprecedented fall in living standards in recent years, where wages have fallen in real terms, leaving working people a further £1,600 a year worse off on average since 2010.
On this side of the Committee, we think it is unacceptable that some of the most vulnerable families face this childcare crunch, hit with reduced support, fewer places and soaring costs. We believe the very least that the Government can do is to agree to this amendment, which simply requires the Treasury to review the impact of childcare costs, including the average cost of childcare for parents in work, taking into account the other changes to the tax and benefits systems. I beg to move.
Lord Nash
My Lords, I am grateful to the noble Baronesses, Lady Jones and Lady King, for Amendment 35AE, which is a companion to Amendment 35AD, which we have just considered. I thank the noble Baroness for her economics lesson but I will not take lessons from the Opposition on financial management, given the appalling state they left the public finances in when they left office nearly five years ago.
Amendment 35AE would require the Government to publish a triennial review of the impact of the Childcare Payments Act on the cost of childcare. I share the concern of the noble Baroness about the impact that high childcare costs have on working families, and for that reason the Government are making significant reforms to support the childcare sector to increase the supply of places. These are designed to ensure that any increase in demand for childcare will be matched by increased supply rather than increased costs. The latest figures show that there are around 100,000 more childcare places than in 2009. This is a remarkable achievement by the Government. In addition, we are making start-up grants of up to £2 million available to help people to set up new childcare businesses and to make up to 32,000 good and outstanding childminders automatically eligible for early education funding.
Baroness Jones of Whitchurch
I thank the noble Lord for those comments. Likewise, we on this side do not need any lessons on economics from him, given the fact that the Chancellor has failed to meet a number of targets that he has set himself, including failing to reduce the deficit. That is one of the reasons why hard-working families are suffering so badly currently.
The truth is that the Government’s figures simply do not add up. They suggested that families will receive £2,000 per family. That is not true. By the Government’s own admission, only 100,000 out of the 1.9 million families eligible for the scheme will receive the full amount—one in 20 families will be eligible for the scheme. The Government’s own impact assessment suggested that the average benefit to families will be far lower—at £600 a year. In addition, work by the Resolution Foundation indicates that 80% of the families that will receive benefit from top-up payments are in the top 40% of the income distribution. Even the remaining 20% will go to those in the middle distribution, so the whole payment system is being skewed to those who are not really in desperate need of these payments.
Nevertheless, we could spend the rest of the evening debating the economy. Given that it is fairly late I am prepared to withdraw the amendment, and I am sure that we will carry on debating these issues elsewhere.
“Provision of comprehensive careers guidance
( ) The Secretary of State shall publish a report on the provision of comprehensive careers guidance which must include, but is not limited to, assessments on—
(a) the implementation and effectiveness of section 29 of the Education Act 2011 (careers guidance in schools in England),(b) the extent to which the National Careers Service’s provision of telephone and web-based support has been used by young people,(c) the feasibility and benefits of making the National Careers Service helpline accessible via Skype,(d) the feasibility and benefits of extending to young people the National Careers Service’s provision of face to face advice.”
Baroness Jones of Whitchurch
My Lords, this amendment seeks to address the continuing widespread concern about the operation of the school-based careers service introduced by this Government in 2012. Since then, there has been a chorus of criticism that the service is not delivering a quality product. Schools, voluntary organisations working with young people and the Education Select Committee have all added their criticisms, and these concerns have been reflected in numerous debates here in your Lordships’ House. I recently visited a number of schools that have been judged outstanding by Ofsted but where the careers advice and work experience opportunities are, quite frankly, poor. Meanwhile, while the Government continue to prevaricate, cohorts of young people are making poor choices about which subjects to study. They are failing to appreciate the range of training and apprenticeships on offer as an alternative to university. They are also failing to grasp the new enterprise and employment opportunities that might be on offer.
At the time when these changes were introduced by the Government, we raised a series of objections and amendments, which were opposed. Sadly, we have proved to be right. By not ring-fencing the funds given to schools for careers, the money has dissipated into other priorities. Many schools are now using unqualified teachers to provide careers advice, with the responsibility often added on to other roles. Their knowledge is often outdated and limited. There also remains a pressure, which is not appropriate for many young people, from their teachers to stay on in the sixth form and follow traditional academic routes.
Recently, in the Education Select Committee in the other place, a UNISON survey was quoted to show that 83% of schools no longer employed professional careers advisers or teachers, with the role often being picked up by teaching assistants and other support staff. This was echoed by the committee’s chair, Graham Stuart, who reported a UTC that was training its receptionist to be a careers adviser. That cannot be right. As we know, Ofsted has reported that 80% of schools are offering an inadequate careers service. Meanwhile, young people are missing out on personalised support and increasingly rely on family and friends to give them advice. The take-up of the formal online advice system continues to be patchy.
Children from disadvantaged backgrounds are particularly losing out. They do not necessarily have access to a social network of people in a variety of jobs and, often, their parents are not ambitious or encouraging enough to them. Good careers advice is a crucial component of social mobility, expanding pupils’ horizons and opening their eyes to a range of work possibilities. We believe that we have already wasted too much time allowing young people to be let down in this way. We need an urgent review of the provision and to make it mandatory for those giving advice to be trained and qualified. We need to ensure that young people get the personal face-to-face advice and mentoring that will help them make the right choices about their future qualifications and careers. We have waited quite long enough for the Government to act on the evidence before them, and we feel that the time is right to take action to put the service back on track. This is what our amendment seeks to achieve.
Lord Freeman (Con)
I very much agree with the thrust of what the noble Baroness has just outlined but I think that one needs to go further, which is why I am a very strong supporter of Part 6 of the Bill, on education evaluation. The provision of guidance is important but to do that, one needs further information about what young students completing their courses at school, and even university, go on to do. Education evaluation as set out in Part 6 admirably explains how further information can be gathered. Currently, the information gathered is on academic and employment results for those leaving school at 16.
I speak as chairman of a charity, with more than 200 schools dealing with this issue of further employment for those who may not have had the best of chances in life and may not have achieved, at least early on in their education, the necessary qualifications. What is needed is evaluation at a higher level, if they go on to higher education at a university or to employment, of what has then been the outcome for those students. That in turn will relate to the advice given to children and parents as to which schools and courses to follow. That is why I very much welcome and commend education evaluation as set out in the Bill, which broadens what already happens.
Baroness Jones of Whitchurch
My Lords, I am grateful to the Minister and to the other noble Lords opposite who contributed to this debate. I accept what the Minister says: that there was no golden age in the past. Sadly, if anything, the situation has deteriorated since the Connexions service was abandoned. Many people would say that what we have now is worse than in the past, rather than an improvement on it. What concerns me about what the Minister said is his lack of urgency—that this new careers company, which is being set up, may or may not play a good role in disseminating good practice and that he hopes it succeeds. However, that will take a considerable time to have any impact and we have young people leaving now who are not getting the advice that they need. I very much echo the points made by noble Lords opposite that what we really need is good employers going into schools now, being encouraged to go in and giving work experience to young people. That really ought to be the way forward and is what is needed, but it is not always happening.
I should perhaps have said, too, that the education evaluation and destination data are absolutely crucial. I am very pleased that the Government have taken an initiative on this. We are also very supportive of having that destination data. We have some criticisms about whether they have the right model but at this point, anything is certainly better than nothing. The careers process, and how you then measure whether children have found the right career, work experience or courses for them, really ought to be a seamless, positive whole. It is not like that at the moment. Children are floundering around with little advice and those who most need it are the ones who do not appear to be getting it. It is a very sorry state. We may well come back to this issue but for the moment, I beg leave to withdraw the amendment.