Childcare Bill [HL]

Debate between Baroness Jones of Whitchurch and Baroness Evans of Bowes Park

Wednesday 14th October 2015 Lords Chamber

[Baroness Jones of Whitchurch]

My Lords, I support these amendments. In essence they follow on from our earlier debate about funding. The noble Baroness has made a compelling case for the payment schemes being fully funded. This is important for providers and local authorities, who do not want to discover that once again, they are being expected to cross-subsidise the free places from other budgets or income streams. It is particularly important for children living in deprived areas, for whom additional funding from another pot simply might not be available.

We also support the strong case being made for an element of capital funding being included in the local authority grant. If part of the Government’s strategy is to increase demand and bring new people into the jobs market, rather than simply provide a higher subsidy for those already in work, extra capacity will need to be found. We cannot rely on the market to fill this gap, particularly in the poorer areas, so local authorities will need to step in and help.

The last thing that we want as a result of this Bill is for the gap in provision between the more affluent areas and deprived ones to widen, but if we are not careful that could be the consequence if the places are not fully funded. We support these amendments and the certainty that will arise from the commitment to funding being enshrined in the Bill.

[Baroness Evans of Bowes Park]

My Lords, I would like to speak to Amendments 24 and 25, tabled by the noble Baronesses, Lady Pinnock and Lady Tyler, to which the noble Baroness, Lady Jones, has just referred, and to which the noble Baronesses, Lady Andrews and Lady Howarth, referred earlier in relation to cross-subsidy.

On Amendment 24, I thank the noble Baronesses for highlighting the need for the rate paid to be sufficient for providers delivering the extended entitlement, and for bringing to my attention the need to secure provision for children in deprived areas. I understand the concerns they are seeking to address through these amendments, and the Minister mentioned earlier that we share the aim of getting the funding for the entitlement right. We are clear that this funding must be sufficient to ensure that providers are funded adequately to be able to deliver the additional requirements set out in the Bill.

We have listened to providers’ concerns that increasing government-funded hours will limit their ability to cross-subsidise from parent-funded hours and that delivering at current rates may not be sustainable. That is why the Prime Minister has committed to increase the average hourly funded rate paid to providers. As was mentioned earlier, we are the only party to have made this commitment. We have already committed £840 million of new funding to deliver the extended entitlement, and that is before we deliver on our pledge to increase the hourly funding rate.

My noble friend Lord Nash has spoken at length about the review of the cost of providing childcare, the purpose of which is to provide a robust analytical underpinning for a funding rate that is fair and sustainable for providers and delivers value for money to the taxpayer. I confirm that the review will include in its consideration the needs of children in deprived areas. I also assure noble Lords that the Government understand the importance of early years education for children from disadvantaged households.

We know that high-quality early education can lead to higher attainment later but there is a persistent gap between children eligible for free school meals and their peers in the proportion achieving a good level of development in the early years foundation stage profile. This is why we introduced the early years pupil premium in April this year, which provides extra funding to early years settings for each three or four year-old child from a disadvantaged household. We have estimated that there will be around 170,000 children eligible for this extra support in 2015-16. We expect to receive the first data on take-up of the early years pupil premium by the end of this year and will consider these very carefully and take them into account when we develop future policy.

Turning to Amendment 25, the Government aim to deliver a quality free childcare entitlement, with capacity created cost-effectively without driving up costs to parents. The majority of working families with three and four year-olds already use more than 15 hours of childcare. This means that many children will already be in a childcare place and will not require a new one. Rather, the new extended entitlement will pay for the additional hours parents are already purchasing from an early years setting themselves, helping working families with the cost of childcare.

There is natural growth in the childcare system but we can, and should, encourage new providers to enter the market or existing providers to expand. Collaborative arrangements across different types of providers and increased flexibility for providers are important elements of this. That is why, for example, under the Small Business, Enterprise and Employment Act, childminders will be able to provide childcare on non-domestic premises.

The Government have already made a £100 million investment of capital in early years to support the expansion of provision for two year-olds. We believe there is existing capacity in the system to help deliver the new entitlement, and we are continuing to talk to local authorities to increase our understanding and evidence of where this is. The Government are committed to funding the extension of the entitlement at a level that ensures choice and flexibility for parents, is sustainable for providers, and is fair to the taxpayer. Decisions on the level of funding, including any capital, will be made in the forthcoming spending review. I therefore urge the noble Baroness to withdraw her amendment.

Childcare Bill [HL]

Debate between Baroness Jones of Whitchurch and Baroness Evans of Bowes Park

Monday 6th July 2015 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, I add my support to the amendment and to the comments of the noble Baroness and the noble Earl. What the Government are proposing in terms of redefining child poverty is an absolute disgrace. What we need is not a change to the definition of poverty but a plan to deal with poverty. The truth is that, after child poverty fell under the previous Government, last week’s Households Below Average Income DWP statistics show that more than 4 million children have plunged into absolute poverty under this Government. The Government seem to be determined to disguise the fact that they are on course to miss the target of abolishing child poverty by 2020 by changing the statistical goalposts. So what assessment have the Government made of the DWP statistics? Do they accept that the number of children in absolute poverty is increasing?

Following on from the Oral Question on the Family and Childcare Trust report, Access Denied, how will the provisions of the Bill contribute to meeting the child poverty target when children in disadvantaged areas are expected to miss out disproportionately on the early years provision? Does the Minister accept that families on low incomes frequently work on unstable contracts both in terms of the hours they are offered each week and the length of contract? These are the points that we rehearsed in the debates last week. So how can we be assured that low-income families will benefit from these proposals rather than being penalised —or even possibly criminalised—by their uncertain working patterns, where, for example, shifts are cancelled at short notice and the eight-hours criterion is not always met? This is a real challenge for us. How are we going to measure the progress that we are making on these issues? How can we be assured that disadvantaged children are not going to miss out disproportionately once again through these proposals? I look forward to the noble Lord’s response.

[Baroness Evans of Bowes Park (Con)]

My Lords, I will speak to Amendment 34, moved by the noble Baroness, Lady Pinnock. I recognise that, following recent announcements, noble Lords will be seeking to debate the wider issue of child poverty in the fullest way and I have no doubt that there will be further opportunities in the future. As the Secretary of State for Work and Pensions confirmed in the other place last Wednesday, the Government will be bringing forward legislation to remove the existing measures and targets in the Child Poverty Act, as well as the other duties and provisions. When this legislation is brought forward, there will of course be further opportunities to debate the many specific details. However, the legislation will at the same time introduce a statutory duty to report on measures of worklessness and educational attainment. We do not underestimate the importance of income and its impact on children’s life chances, but we are clear that the current low-income measures do not drive the right action to tackle the root causes of child poverty, which are what we really need to focus on. That is why we have set out our proposals for new measures.

Education: Free Schools

Debate between Baroness Jones of Whitchurch and Baroness Evans of Bowes Park

Monday 22nd June 2015 Lords Chamber

[Baroness Evans of Bowes Park (Con)]

My Lords, free school proposer groups go through a rigorous process before they are allowed to open a school. Free school trustees are subject to company and charity law. They must also comply with the terms of their funding agreement. As new institutions, free schools are monitored by departmental education advisers and the Education Funding Agency. In the small number of schools where issues arise, we have taken swift and decisive action.

[Baroness Jones of Whitchurch (Lab)]

I thank the Minister for that reply and welcome her to her new role on the Front Bench. I am pleased to hear that the Government are beginning to recognise that the scandals that have occurred in the past in free schools, including financial irregularities and extremist teaching, could not continue uncontrolled under the Secretary of State’s centralised power grab. However, the new model now being proposed, which includes regional schools commissioners, is only part of the solution. How can they really know what is going on at a local level when they could be supervising something like 3,000 schools each once the Government’s plans are rolled out? Is not the real solution a major devolution of power and resources to those who really can deliver school improvement across the education system?

[Baroness Evans of Bowes Park]

I thank the noble Baroness for her welcome but I am afraid that—as she would probably expect—I do not wholeheartedly agree with many of the points that she raised. She is absolutely right that in the small number of cases where free schools have faced issues, swift action has been taken, but that does not paint the full picture of the great work that is going on in these schools around the country. For example, 74% of free schools inspected by Ofsted have been judged good or outstanding and, in fact, free schools are more likely to be judged outstanding than other schools. Regional schools commissioners are playing an increasingly important role in the oversight of free schools but I assure the noble Baroness that parents across the country are welcoming these schools, which are offering a high-quality education to their pupils.