Childcare Reform Package

Baroness Thornton Excerpts

Thursday 29th June 2023 Lords Chamber

[Baroness Thornton (Lab)]

I thank the Minister for repeating the Statement today. We need to congratulate the Government on arriving at the childcare party—possibly 10 years late but, as they say, better late than never. For many of us—for me, after 25 or 26 years—this recognition of the vital importance of childcare is very welcome. I realise that, for this Government, this is actually quite a radical Statement.

The reforms outlined reflect some of the changes to universal credit that the shadow Secretary of State, my honourable friend Jonathan Ashworth, has repeatedly called for, so of course we welcome them. But, as he has also warned Ministers, they do not go far enough in giving people the chances and choices to go back to work at the scale necessary to tackle the challenges.

On childcare, the Government’s fixation on a broken hours model leaves them, I believe, blind to the wider challenges around supply and demand for childcare and what might happen to the extraordinary structure of the market for extra hours as a result of this. We have to ask whether the announcement addresses the extra staff who will be needed to deliver the extra entitlement for parents that the Minister has announced. We have to wonder about the retention and upskilling of existing staff in the sector who, we have to say, are leaving in droves for work that is clearly more valued. We also have to wonder how to enrich childcare to drive up quality, make it part of our education system and deliver a foundation for achievement and success right through school and life. We have to ask whether it delivers the flexibility that parents need not merely to work but to get into work—to get the training and skills they need and that our companies, communities and country need.

My honourable friend Stephen Morgan MP, who spoke in the Commons on this, said:

“It is a promise of jam tomorrow”.—[Official Report, Commons, 28/6/23; col. 310.]


I think he might be a trifle harsh, but I certainly think it is a promise that brings with it some questions. When the 30 hours childcare entitlement is spread over a year, it is equivalent to 22 hours per week. The cliff edge in costs between government-funded hours and hours that parents have to pay full costs for therefore may create a barrier for parents wanting to work more hours. What is the Minister’s department doing to tackle the issue of the cliff edge?

What modelling has the department undertaken to estimate the number of additional staff required to deliver the increase in childcare hours entitlement announced in the Budget? There are currently two children for every Ofsted-registered early years childcare place in England, rising to 11 children in some areas. Does the Minister understand that parents simply cannot find the childcare they need, even if the funding is there? How will the Government help move people into work if those undertaking training, for example in nursing or health services, are excluded from accessing childcare hours entitlement?

Early years childcare is essential, not just for working parents but for children for their learning and development. What assessment have the Minister and her department undertaken on the impact of their changes to staffing ratios and qualifications required on the quality of early education that children will receive? How does the department intend to increase the uptake of the universal credit childcare entitlement among the thousands of eligible families missing out on this support due to the complexity and bureaucracy of the system?

As we approach the summer holidays, parents across the country are making plans for coping with summer childcare costs. In the case of those who are grandparents, we are working out how we will fit in the childcare we will need to do with the holidays we might want to take. This announcement will do nothing for thousands of families who cannot afford to pay childcare costs up front, so I would like some more detail from the Minister about how the Government intend to ensure that these parents are able to stay in work over the summer.

Research from the National Day Nurseries Association shows that nursery closures are up 50% in the last year, with poorer neighbourhoods seeing more closures. That is not going to help working parents. What steps are the Minister’s department going to take to retain staff within the childcare sector, using their experience and expertise and not simply focusing on getting more staff through the door?

The Minister’s press release yesterday highlighted the hourly funding the Government are giving providers caring for two year-olds, yet most children in childcare are aged three to four. The Minister mentioned them. Could the noble Baroness explain how the funding rate for three to four year-olds compares with the cost to providers of delivering an hour of childcare? This is definitely a start, and definitely more needs to be done.