Free Childcare Entitlements

Lord Watson of Invergowrie Excerpts

Wednesday 6th September 2017 Lords Chamber

[Lord Watson of Invergowrie (Lab)]

My Lords, I thank the Minister for repeating that Statement as well as for his Statement on the same subject on 18 July. The Government then responded to an Urgent Question on the process of applying for the 30 free childcare hours. The Minister’s response included the admission that the childcare service is a complex IT system which had “experienced technical issues”. He went on to state that:

“HMRC, which developed the service, has been working hard to resolve these issues and as a result the customer experience has improved”.—[Official Report, 18/7/17; col. 1525.]


I have to say that it has not improved enough in the intervening seven weeks to avoid many parents being unable to get their code to access the 30-hour entitlement. None the less, I note what the Statement says in respect of no one losing out. However, according to figures given by the Minister in another place today, six days after the new entitlement began, only 152,000 out of 390,000 eligible parents have been able both to get a code and to find a place for their children. That represents a success rate of under 40%. What plans do the Government have to increase that rate dramatically? I suggest that re-evaluating the policy’s funding would be one means of doing so.

I hope that the Minister will also be in a position to provide an answer to a key question asked earlier by my colleague Tracy Brabin in another place. She did not receive an answer, but three hours have elapsed and I am confident that the Minister’s officials will have ensured that he arrived at the Dispatch Box fully briefed and able to provide an answer. The question was: can the Minister guarantee that he will not allow a two-tier system to emerge whereby parents who can afford to pay extra will have access to the new entitlement and those who cannot pay will not?

[Lord Nash]

I am grateful to the noble Lord for his comments. I think it is fair to say that no Government have done as much as this one to develop childcare. We have delivered a massive increase in childcare provision and the sector has handled that well. Our evidence from the 12 live pilot projects—not surveys but live projects—is that they are handling this implementation well. As I said, this is a complicated project, which the noble Lord also referred to, but overall it is going well. Of course there are teething problems, as there always are with a new provision, and we apologise to those parents who may have experienced them. We will do all we can to help them.

The evidence from the 12 pilots, however, is that the vast majority of providers are engaging, parents are happy and, for many of them, this project has had a life-changing impact. We have heard some moving stories of parents who have experienced this. Almost a quarter of mothers have reported that they have been able to increase their working hours, along with a 10th of fathers. The fact that some 150,000 or so places have been taken up reflects that these are very early days. It is inevitable when one has a deadline that there is always quite a rush up to it, and the fact that 70% of these children have already had their codes validated by nurseries is pretty good, given that only a few days have elapsed since the deadline and obviously not all parents will want to take up the offer immediately.

We have no desire to preside over a two-tier system. The Government have done all they can to support less privileged children. We have the early years pupil premium, the free entitlement for two year-olds and tax-free childcare. It is certainly not our intention to preside over that kind of system.