Childcare Bill [ Lords ] (First sitting)

Debate between Chloe Smith and Christian Matheson

Tuesday 8th December 2015 Public Bill Committees

[Christian Matheson]

There will be many beneficiaries of these proposals. I welcomed the hon. Member for Norwich North saying that fathers will benefit because we are moving, although perhaps not as swiftly as we might like, into an age in which fathers have more childcare responsibilities. My hon. Friend the Member for Birmingham, Yardley made the good point that the gender pay gap will continue as long as we have a greater emphasis on maternal childcare, but I will not go into that as we are not on that topic at the moment.

One area that the review might take into account is the effect on providers. If the Committee will allow me, I will quote a constituent, and I may write to the Minister in greater depth about this particular case, because it is quite detailed. There is consternation—or concern, perhaps—that the numbers do not necessarily add up for providers. My constituent tells me that the reality of the current proposals is that

“each hour of extra funding”

for his nursery in Chester

“would mean a potential loss of £1.10, so that’s £16.50 per week per child.”

He continues:

“We have 35 registered children currently, which equates to £577.50 per week, times 14 weeks in this term,”

which means

“£8085.00 per term, or £24,000 per year.”

Those figures are losses due to the shortfall for providers. I do not expect the Minister to respond to that particular case now and I apologise for putting him on the spot without having written to him first, but the example illustrates the concern among providers that the numbers do not add up. A review that included providers would at least give us reassurance, or might identify a problem that needs addressing.

My constituent went on to write:

“The implications of this, coupled with increased rates, fuel costs and the… proposals to increase the national minimum wage, will put the pressure squarely on the providers shoulders, meaning they will either not be able to provide the level of care each parent rightfully demands, or it could even put them out of business”.

[Chloe Smith]

Does the hon. Gentleman agree that there is a problem in some parts of the country with local authorities not passing on as much of the funding as they ought to? I welcome the spreadsheets with which we have been provided to show that that is happening across the country. As I said on Second Reading, Norfolk County Council holds back 8% of the funding, whereas the figure elsewhere in the country is fractions of that, and I think that that is wrong.