Oral Answers to Questions

Lucy Powell Excerpts

Monday 27th October 2014 Commons Chamber

[Nicky Morgan]

I certainly congratulate all those involved at Rugby high school in encouraging our young people to take maths and to continue to study all maths and science subjects. As we have already heard, it is absolutely essential that our young people continue to study STEM subjects, because there is a real need for them among the businesses in our economy.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

We are seeing the impact of the Government’s woeful record on careers in their flagship early years apprenticeship scheme. Figures I have uncovered show that, despite Ministers doubling the bursary, just 38 people applied in the first six months. The Government were aiming for 1,000. The scheme has now closed. The Government have dismantled careers services, leaving no pipeline to get the best young people into this important scheme to improve quality in the early years. What lessons does the Secretary of State draw from this appalling experience?

[Nicky Morgan]

I do not think that 1.8 million apprenticeships is anything to be sniffed at. In fact, the Government have created more apprentices and we are committed to creating 3 million more in the next Parliament. As for what the hon. Lady says about careers advice, we have already, as from 1 October, extended the National Careers Service. Ofsted is expecting careers guidance, but I have already said that there is more to do in terms of building partnerships between employers and schools.

Nursery Schools

Lucy Powell Excerpts

Tuesday 9th September 2014 Westminster Hall

[Mr Stuart]

I will come on to funding and raising the status of early years. If the hon. Gentleman will allow me, I will come back to that, but he is right.

Nursery schools do a particularly good job of supporting children from poorer homes—that is worth saying. The Government’s educational reforms have two main aims: to raise standards for all and to close the gap in attainment. If we have things that do a peculiarly good job in looking after the interests of disadvantaged children, we should be extremely wary before risking, inadvertently or otherwise, their destruction.

Ofsted’s early-years report, published in March, stated that only just over a third of children from low-income backgrounds reach a good level of development in the early years. In some local areas, that figure is less than a fifth. Crucially, some types of provision, such as childminders, are considerably less likely to be good or outstanding in deprived areas. By contrast, Ofsted found that children from low-income families make the strongest progress when supported, as has been said, by highly qualified staff, in particular with graduate-level qualifications. Where are such staff most frequently found? In nursery schools.

To quote Ofsted’s report:

“Nursery schools have high levels of graduate level staff and perform as strongly in deprived areas as in more affluent ones.”

Of how many types of educational provision can we say that they perform as strongly in deprived areas as in more affluent ones? I cannot think of one, actually, but we have nursery schools managing to achieve that, to achieve what the previous Government and this Government want to do for social justice, delivered through education. I again make the case: let us ensure that we do not inadvertently lose them.

Despite that, the Government’s policy seems a little confused. The Education Committee expressed regret that the right hon. Member for South West Norfolk (Elizabeth Truss), the then Parliamentary Under-Secretary of State for Childcare and Education, now the Secretary of State for Environment, Food and Rural Affairs, showed little enthusiasm for maintained nurseries, many of which have closed over the past decade. Likewise, my Committee expressed concerns about how the Government’s ambition to create an integrated nought-to-18 teaching work force will be delivered successfully. It is important to focus on that, although it sounds like a soundbite. An integrated nought-to-18 teaching work force is the Government’s stated policy. The then Minister told us that she wanted

“to see a much greater consistency across the teaching workforce and much less of a silo between the early years and primary school”.

Who can say, in any party, that she was not right to do so?

With that in mind, Ministers have set out their plans to reduce the number of different early-years qualifications, to improve the quality of training and to raise the status and quality of the work force by replacing the current early-years professional status qualification with new grades of early-years teacher and early-years educator. Early-years teachers will be graduates and will need to meet the same entry requirements and pass the same skills tests as trainee school teachers. So far, so good: there is an inspiring vision of integrated nought-to-18 teaching work force, with an upgrading and re-engineering of the training, requirements and qualifications of those working in that sector. They will not, however, be accorded qualified teacher status in the same way as primary and secondary teachers. That is not to visit the obsession of the shadow Secretary of State for Education, the hon. Member for Stoke-on-Trent Central (Tristram Hunt), with the tiny number of people who are not qualified teachers, which seems to be a sideline in the overall education debate; it is to go to the heart of the status of those people in relation to those who work in primary schools.

My Committee concluded that the Government are right to want to increase the qualifications of the early-years work force. As Susan Gregory of Ofsted reminded us, the historic situation is that

“you need a higher qualification at entry level to work with animals than you do to work with young children.”

[Lucy Powell (Manchester Central) (Lab/Co-op)]

The hon. Gentleman is making a powerful case for raising standards in early-years education, with which I wholeheartedly agree. I am interested in his comments about the new qualification. May I infer that he agrees that the Government should take action now to equalise the status of the new qualification, so that it does have qualified teacher status? It is bizarre that we have circumstances in which graduates can earn half as much for teaching those between the ages of nought and five as if they chose to teach early-years three to seven. Some early-years teachers can command twice the salary. Is that not a poor state of affairs?

[Mr Stuart]

I agree with the hon. Lady that that is an anomaly in the Government’s vision for the future. There is an inconsistency. However, I would gently chide her by saying that the money has to be found from somewhere, because there are real cost implications. If we are going to will the ends, we have to will the means, and that will mean taking tough decisions—unless people think that there is an infinite money tree somewhere. We will have to take the existing budget and orient it more to the early years. It could be said that this Government have done that in a number of ways, from abolition of the education maintenance allowance—that act was enormously unpopular—at one end to the introduction of the offer for two-year-olds and its extension from 20% to 40% at the other.

The truth is that considerably more money is being spent on early-years provision, despite overall constraints on spending. I would imagine there will a combination of some re-engineering—a lot of which will be unpopular, as anyone we take the money away from will hate us for it—and potentially finding additional funds. However, given that this supposedly austere Government are still spending over £100 billion a year more than they have coming in, I am not clear that additional funding outside the budget could easily be found.

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[Lucy Powell (Manchester Central) (Lab/Co-op)]

I congratulate my hon. Friend the Member for North West Durham (Pat Glass) on calling this important debate on an issue that I know she has long campaigned about. I will adopt her spirit and approach the debate in a non-partisan fashion. The two speeches we have heard have shown that that spirit is being maintained.

I also welcome the Minister to the Front Bench. We have had an exchange of sorts in the main Chamber, but this is our first opportunity to debate some of the issues here in Westminster Hall. I see from the profile of him in The Independent today that he and I have two things in common: first, like me, he has a passion for early-years education and the impact it can have on the life chances of children; secondly, like me, he attended Somerville college. I was in the last all-women year there, so I know that he is younger than me: he must have come in the vanguard of men who subsequently followed. On that point, I was slightly horrified to see the all-male Somerville team on this year’s “University Challenge”, but I digress.

[Mr Graham Stuart]

I forgot to welcome the Minister to his place, which was very rude of me. It is a delight to see him in his position, bringing his youthful enthusiasm to the early-years sector and the challenges it brings.

[Lucy Powell]

I thank the hon. Gentleman, and yes, the Minister obviously is very youthful—more so than me, clearly.

This debate on nursery schools is important because they have become the poor cousin in the sector. They fall between two stools: they are not considered to be schools in many legislative frameworks, nor are they like other nursery providers in the sector, as others have said. The Minister’s predecessor, the right hon. Member for South West Norfolk (Elizabeth Truss), had a mission and a drive to expand provision of nurseries in the school setting, something which I shared with her. However, she did not have the same zeal for nursery schools. That was a missed opportunity. I hope the Minister, as her successor, will rectify that position. I will come on to some of the things that could be done in that regard.

On the wider debate about early-years provision, the Chair of the Education Committee, the hon. Member for Beverley and Holderness (Mr Stuart), is absolutely right to say that high-quality, skilled, graduate-led settings are the very best that we can offer, especially for the children, in my community and many of the communities represented here today, who do not have the best start in life because they do not have the advantages—the home learning, the communication and the security at home—that many of the most advantaged children do. As policy makers, we have a responsibility to get that right.

More specifically, nursery schools are consistently the highest-graded part of the early years system, as has been said. Some 96% are graded “good” or “outstanding”, many of them in some of our most deprived communities, including my constituency. That compares with 64% of childminders and 76% of other child care providers in our community. They are the crème de la crème of the system in early years in many of our most deprived communities. As my hon. Friend the Member for North West Durham said, where they exist they act as a hub of leadership across the whole provision in their area. They have a unique role in doing so. The evidence is incredibly strong that nursery schools are the beacon for the highest quality provision in the early years.

I will comment on some of the challenges that maintained nursery schools face and how we might begin to address some of them. The challenges and threats are specific, for a number of reasons. As has been said, the single funding formula was intended to create a level playing field. However, for a number of reasons nursery schools have fallen foul of the funding system. First, nursery schools have higher overheads compared with the private, voluntary and independent sector because they are required to employ qualified teachers. They also have higher costs because they are required to have specialist head teachers—something that their equivalents in the PVI sector do not have. We have already heard about the additional value that that brings to the education provided in them. For that reason, many local authorities provide nursery schools with a much higher hourly rate than some of their competitors, but that is significantly under threat, given the cuts that are coming to local authority budgets.

Yet this is an issue not just of funding, but of status in the system. Because nursery schools are seen neither as schools nor as nurseries, they cannot enjoy some of the freedoms and powers that schools enjoy. Nursery schools are not eligible for things such as the pupil premium. The Chair of the Education Committee, the hon. Member for Beverley and Holderness, asked how we could rebalance the system. I would strongly welcome the extension of the pupil premium to the early years. There is significant scope to add more value by drawing down the pupil premium earlier. However, as nursery schools cannot qualify for that money, which does not come on stream until next year in any case, they are unable to take hold of this opportunity and lead the debate on how the pupil premium can be best used in the early years. The pupil premium has huge scope for providing the kind of early intervention that my hon. Friend the Member for North West Durham described.

Another anomaly is that nursery schools are unable to become academies. Nursery schools are unable to take that opportunity while we are in this dog-eat-dog world in the education sector, where all schools are trying to come together or achieve the freedoms of academy status, therefore leaving behind a smaller and smaller cohort of maintained schools and a smaller and smaller role for local authorities.

[Mr Stuart]

I am glad the hon. Lady has raised the issue of allowing nursery schools to become academies. I took a delegation of heads of nursery schools to see the Department some months ago and pressed that exact case. I hope we may hear the Minister’s thoughts on that subject. There is an opportunity to unleash places such as Pen Green and others through academy status and allow them to innovate and further expand what they do in future.

[Lucy Powell]

I am pleased to hear that the hon. Gentleman took such a delegation to see Ministers. I hope some of that is taken forward. I passionately believe that we cannot do early years on the cheap. This will require some tough decisions on how slim resources will be spent, but will allow some of the best examples of early years education in this country to have not only the extra resources that are coming into the system, but the freedoms to give them the security and allow them to have the sort of innovative, creative and leadership role that the Oxclose cluster or Martenscroft nursery school in my constituency provide in some of our most deprived areas.

In conclusion, I reiterate the points that have already been made. My party has to accept its responsibility for ignoring the potential of nursery schools during our time in office. Nursery schools provide some of the best education and provide for some of our most vulnerable children, not just those who are deprived, but those with disabilities, special educational needs and those who would elsewhere be turned down by private providers, which do not have to accept them. My hon. Friend the Member for North West Durham recently published a fantastic report on child care for disabled children, which is a long-forgotten issue in this area. Parents with disabled children face barriers up to 10 times greater than those without disabled children.

[Alex Cunningham]

I am grateful that my hon. Friend raised the issue of children with special needs. Claire Guffick and Russ Andrews’s 16-month-old son Dylan attends the North Tees nursery that I spoke about earlier. He has a severe form of atopic dermatitis—a form of eczema. He is registered disabled because of the high level of care he needs. His mother said:

“We visited a number of nurseries but North Tees was the only nursery able to cater to his health condition and also cater towards his restricted diet.”

That is all the more reason why that nursery should be saved: it caters for the very special needs of very special children.

[Lucy Powell]

I completely agree with my hon. Friend. He and I both attended the launch of the report by my hon. Friend the Member for North West Durham, which examines how we can better look at meeting the child care costs of parents with disabled children. We heard some profound examples of just the sort of situations that my hon. Friend the Member for Stockton North (Alex Cunningham) describes. Nursery schools are often the only option that many parents have. I would gladly join the Minister in making progress on the issue.

If the Minister has not done so already, I urge him to read the final report of the Education Committee on some of the issues we have been debating. There are good recommendations in it, and perhaps he will use today’s opportunity to update us on how he is advancing those. Does he agree with me about enabling nursery schools to hold the pupil premium for the early years? Will he consider the question of allowing nursery schools some of the freedom that other schools have to take on academy status?

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[Mr Gyimah]

My hon. Friend the Chairman of the Select Committee makes an excellent point, and I will write to him on that specifically. He alludes to quality and we know that a large proportion of maintained nurseries deliver outstanding provision, and in areas where maintained nursery schools rightly remain part of the answer, we want local authorities to work with them to ensure they spread their expertise. We are seeing that already. Nineteen maintained nursery schools are designated teaching schools and a further 109 are members of a teaching school alliance. I will write to the Chairman of the Select Committee with the details of how that is working. In Bristol, for example, where maintained nursery schools are linked to local primary schools and private sector providers in a teaching school alliance, they can share and disseminate best practice. That is an important way to guarantee the continued success of our best, high-quality maintained nursery schools.

Qualified teaching status and early-years teachers were mentioned by the hon. Member for North West Durham. I believe, as do all hon. Members here, that there is a need to raise the status and quality of the professionals in the early-years sector. We cannot say that early years are critical to a child’s development and not do everything we can to attract the best people into the sector. There are several ways of doing that. For example, one of my first decisions as Minister was to look at the early-years educator level 3 qualification. On literacy and numeracy, staff who qualify for level 3 must have GCSE level A to C in maths and English. We phased that in for the first year and it will be on exit, but after 2015, they will have to have that on entry to start a level 3 early educator course and to qualify.

A broader issue is attracting graduates to early-years education. QTS is one way to do so, but not the only one. We cannot set pay expectations for all early-years providers. The private voluntary independent sector is significant in the early-years sector, so we must think of ways of attracting the best graduates into the sector.

[Lucy Powell]

I do not know whether the Minister has met some of this year’s cohort on the course, but many have come to me to complain that they were misled about the course because they thought that they would have the same pay and status as if they had done the other available course for full qualified teaching status. I appreciate the impact on the sector of looking at these issues, but we must be mindful of attracting people to the courses. People have the choice of becoming fully qualified teachers, early-years qualified teachers or to qualify as a new early-years graduate. They will vote with their feet and choose where they think they can get the best paid job because they all come from the same place. The Minister must think about that.

[Mr Gyimah]

The shadow Minister makes an excellent point. If people believe they were misled about a course, the first solution is to ensure that the details are communicated clearly to people when they sign up. On the broader issue of discrepancy in pay, we must look at that as it applies to the whole early-years sector, not just between primary school teachers and early-years teachers. The problem can be addressed in several ways. However, there is a more fundamental point. I was speaking to Andreas Schleicher, who presented to the Department on the PISA rankings yesterday, and raising quality is not just a question of increasing the salary; we need to ensure that we have the right sort of career progression. If we look at other countries where teachers are very motivated and excited, they have career progression built into the system as well. It is a knotty issue to get around, but it is in my in-tray and I am looking at it.

Oral Answers to Questions

Lucy Powell Excerpts

Monday 21st July 2014 Commons Chamber

[Nicky Morgan]

I thank my right hon. Friend for his warm words. He is absolutely right to say that under the universal credit that my right hon. Friend the Secretary of State for Work and Pensions is introducing, families will be able to receive 85% support with their child care costs, up from 70% under the current working tax credit system?

[Lucy Powell (Manchester Central) (Lab/Co-op)]

I, too, welcome the new Secretary of State to her position today. May I take it from the fact that she is answering the questions that she is now the child care Minister as well as Secretary of State and that despite her expanding ministerial team she has taken on those responsibilities? I am all for flexi-working, but given the challenge our country faces with its child care system I hope that she can focus full time on this issue. As other Members have said, the Family and Childcare Trust and Netmums have shown that the cost and availability of holiday child care are damaging the economy, with 1 million working days lost because parents cannot find or afford holiday child care to fit their needs. What does the Secretary of State say to parents being forced to take time off this summer, during this Parliament, because they cannot get the summer child care they need?

[Nicky Morgan]

I thank the hon. Lady for her warm words. She will be aware, as a fellow working mum, that women are excellent at multi-tasking. Of course, as Secretary of State for Education, I am interested in child care and the whole range of issues that my Department will be dealing with as well as my brief as Minister for Women and Equalities. I look forward to continuing these debates with the hon. Lady, as does the Minister who will be taking on the specific responsibility for child care. She is absolutely right that the holiday costs are very important and that is why we have increased the number of free hours of child care available as well as introducing tax-free child care, shared parental leave and policies on flexible working, all of which I am sure she welcomes.

Oral Answers to Questions

Lucy Powell Excerpts

Monday 16th June 2014 Commons Chamber

[Elizabeth Truss]

As I mentioned, local authorities have a role in encouraging schools to offer places. We know that more than 30% of early education places are in schools for three and four-year-olds, but not yet for two-year olds. That is why we are working with local authorities such as Lewisham, which we have given part of an £8 million grant, to make sure that schools are opening from 8 am to 6 pm and offering provision for two-year-olds.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

As my hon. Friend the Member for Lewisham East (Heidi Alexander) has said, too many of the most disadvantaged two-year-olds are not in high-quality provision. In addition, the freedom of information request that I released today shows that nearly half of councils lack sufficient places to meet the extension of free child care provision for two-year-olds in September 2014. That is a shortfall of 44,000 places for this year. Added to the shortfall that the Minister has just announced, that makes a shortfall of 60,000 places in the Government’s flagship two-year-old offer. What is she going to do about that?

[Elizabeth Truss]

The hon. Lady should be aware that there are 300,000 available places across the country, and that it is the role of local authorities to make sure that they are open for two-year-olds. She might want to listen to comments made by the former children’s Minister, the right hon. Member for Barking (Margaret Hodge), about the previous Labour Government’s role:

“The sensible policy direction would have been to locate more and more of our childcare offer in schools rather than build other buildings.”

This Government are doing what the previous Government did not, by enabling schools to offer those places. Very few school nurseries are currently open between the hours of 8 am and 6 pm. Why does the hon. Lady not work with local authorities to help them make that happen, rather than complaining about their failure to act?

Oral Answers to Questions

Lucy Powell Excerpts

Monday 24th March 2014 Commons Chamber

[Elizabeth Truss]

I thank my hon. Friend for that question. We are working with London providers and local authorities to get them to expand the number of places. We have made it easier for private sector providers to expand without planning red tape, and we have made it easier for good and outstanding providers to expand without red tape. We also want to see school nurseries and children’s centres open from 8 am to 6 pm to provide flexible child care.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

We welcome the fact that finally families will receive some much needed help in meeting their child care costs. However, does the Minister accept that by the time the tax-free scheme comes into effect in 2015, the support that families have already lost plus the increases in costs over this Parliament will mean that the vast majority of families will still be worse off? Can she also tell the House what assessment she has made of the impact on price inflation, given the chronic shortage of places?

[Elizabeth Truss]

I do not think that the hon. Lady heard my first point, which was that prices are falling in real terms in England for the first time since the Family and Childcare Trust study began. Under Labour, they went up by 50%. On Thursday, I visited the excellent Medlock primary school in her constituency, which offers places to two, three and four-year-olds. Staff told me of their plans to open from 8 until 6 to provide parents with more care. That is happening across the country—[Interruption.] I hear what the hon. Lady says. At present, most nurseries in Manchester are open from 9 to 3. If they opened from 8 to 6, that would be more than 60% extra.

Child Care (London)

Lucy Powell Excerpts

Wednesday 19th March 2014 Westminster Hall

[Nick de Bois (Enfield North) (Con)]

It is a pleasure to serve under you, Mr Dobbin.

I congratulate the hon. Member for Lewisham East (Heidi Alexander) on securing this debate. Recently, I have found myself on the same side as her on certain issues; that probably comes as a disappointment to her and it certainly comes as a surprise to me. However, in common with her in this debate, I also profess a limited knowledge of this issue, although at one point my wife and I had four children under the age of five. I rightly stand charged of perhaps not doing enough at that time to learn about this subject; I should know more. However, I am pleased that we are having this debate, not just because it is in the context of London, but because it gives us time to reflect on the challenge and on what the Government are trying to do. It also gives us a chance to reflect on the supply side, which is behind many of the challenges we face. I think that hon. Members would agree that, for too long, it has been difficult for many families to find good, affordable child care.

Without going into detail, I shall touch on why child care services and facilities are so important. They help to nurture the child, enhance their education prospects and support families that want to return to work. Given what I have seen in some parts of my constituency, they also help to support the provision of a safe social environment, including the boundaries that children are sometimes, sadly, missing in an increasing number of dysfunctional family situations. Child care can make a massive contribution.

Particularly in relation to my latter point, I am pleased that the Government are seeking to address the welfare of children from less advantaged families, through a cross-Department—almost holistic—response. Part of that, of course, is access to child care facilities, which is an important part of the jigsaw that I have just put together. Having said that, it is inevitable that as the cost of child care increases, the Government’s response has to focus both on supporting and widening the supply side and on mitigating the costs that we face. Whatever we call the policy, I suspect that all hon. Members can agree that Government financial interventions will be mitigating something. The supply side will be fundamental, long-lasting and will hopefully achieve more.

In fairness, I should say that I am struck by the rather candid comments of Labour’s former Minister for Children, Beverley Hughes, who admitted that they got it wrong, saying that Labour’s approach of pouring money into tax credits

“was probably wrong. We were so keen to stimulate demand from parents”

with fiscal interventions,

“but in retrospect that was such a mammoth task. We ought to have focused on the supply side…then we could have done more and quicker.”

[Lucy Powell (Manchester Central) (Lab/Co-op)]

The hon. Gentleman makes a good point. The former Minister for Children was making the point that we should have put more emphasis on supply-side funding and less on the demand side. Can he explain why the Government are not learning those lessons and are instead focusing much more on the demand side with their tax-free child care announcement yesterday?

[Nick de Bois]

I think the hon. Lady will find that we are learning those lessons. I am dealing with that point: my two themes are the supply side and fiscal interventions. However, I will concede that the supply-side challenge in London is particularly difficult. I will also bring to the Minister’s attention some weaknesses in the fiscal interventions that I am experiencing in my constituency now.

It is a current problem. In the interests of fairness, Opposition Members would recognise that the number of child minders halved under their Government, reducing choice and flexibility for parents. There were 98,000 child minders in 1997 and the number fell to 58,000 in 2010. Westminster Hall is generally a constructive environment for debates, but my main point is that this is not a new problem. Costs have been rising above inflation, consistently, since 2003, and since 2009 they have been rising above wages.

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[Nick de Bois]

Few people in my constituency are on an income of £300,000. I ask the right hon. Lady to wait for the end of my speech, because I will point to how the specific targeting of those on very low incomes has had an unforeseen consequence for those on slightly higher, edging towards middle incomes. We need to be careful of the outcome of any intervention and I will address that shortly.

The hon. Member for Lewisham East touched on this point, but I think the most significant part of yesterday’s announcement was that more families will be helped to move off benefits and into employment. As part of that strategy, the Government announced that they will cover 85% of child care costs for some 300,000 families in receipt of universal credit. I would have expected that to be talked about more widely yesterday because it is a fine example of excellent joined-up thinking. In some ways, it answers the question that the right hon. Member for Lewisham, Deptford (Dame Joan Ruddock) has just asked.

We have made money available to help child care providers to support disadvantaged children. Some £50 million will be invested in 2015-16 to offer 15 hours a week of free child care to all three and four-year-olds. That is another welcome intervention. We are helping schools to offer affordable after-school and holiday care. I want to see primary schools open for more hours each day and more weeks each year—I think that will work.

We are also extending free child care to just over 250,000 two-year-olds from low-income families, which kicks in this September, but I want to address the unintended consequences in my constituency. The extension of the scheme to two-year-olds is the pet project of the Deputy Prime Minister, and I would dearly love him to explain the scheme to my constituents who have children at Carterhatch children’s centre in Enfield. About a month ago, parents who have been doing the right thing by working and paying, in some cases for a number of years, for their children to be at Carterhatch children’s centre were, to be frank, brutally informed that their children are no longer welcome because they are fee-paying and the centre’s priority will be those who now qualify for the extended free places for two-year-olds, which from memory includes people on working tax credits of up to £16,900. The centre has said, “We don’t want you because you are paying your way. We are going to focus entirely on those individuals who are now covered by the new Government intervention.” I put it to Members that that is a perverse unintended consequence. People who are working, doing the right thing and paying to get their children into the centre have basically been told that their child can longer attend.

That brings me to the supply side, because being told to find somewhere else is not helpful as there is not much choice in our area. I tackled Enfield council on that, saying, “Look, this is your policy. Have you directed schools on how to implement the Government’s policy?” The council frankly admitted that what happened at Carterhatch is what it would like to see, but says that it is not directing any headmaster to do it; it is entirely the school’s free will. Schools are not working to Government directives, or so I was told by the council an hour ago, but the consequence of intervening in the marketplace is that we have distorted it at the expense of parents who are doing the right thing.

[Lucy Powell]

Does the hon. Gentleman realise that it is his Government who have taken away the local authority’s role in planning for places? The strategic local commissioning responsibility no longer exists. It is a free-for-all, and it is the Government who took it away.

[Nick de Bois]

The hon. Lady is keen to apportion political blame.

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[Lucy Powell]

I am not doing that.

[Nick de Bois]

Saying, “It’s your Government’s fault” is making a political point when, with all due respect, it is not the Government’s fault.

[Lucy Powell]

I am not saying that, either.

[Nick de Bois]

I will tackle the point. The choice has been made by the head of the school. He is not responding to a central directive from Whitehall or, it appears, from the local education authority. Although the LEA has expressed a preference, it is not a direction. I am highlighting that we now have a situation in which a head teacher finds it more attractive to follow the direction of the Deputy Prime Minister by disregarding parents, many of whom have used the child care centre for a considerable period of time.

Central direction is not the solution, because it is close to the market intervention that we are talking about and will create another dysfunctional consequence somewhere else. Even if we intervene with the best of intentions, it strikes me as odd that the education establishment thinks it is perfectly acceptable to remove some parents in favour of others. That touches on my supply-side argument: if I was a parent who was told that that was what the school had chosen to do, I would look for somewhere else to go because I would not value the school that had made that decision. We therefore have to accept that the weakness on the supply side, which goes back as far as 2003, is at the heart of our problems. That is what we should address, instead of making the wider interventions with which we seem to be obsessed. That is the ultimate solution to the problem.

I apologise for going on for far too long, but I think I have initiated a lively discussion.

Several hon. Members rose—

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[Lucy Powell (Manchester Central) (Lab/Co-op)]

I congratulate my hon. Friend the Member for Lewisham East (Heidi Alexander) on securing this important debate and on its timely nature. It is slightly humbling to have such a wealth of experience on these matters on the Benches behind me. I cannot possibly make a contribution on this important topic that will match those made by so many hon. Members over the years, but I will attempt to do so in my winding-up remarks.

The issues facing families in London are the exacerbated version of what families around the country face. Child care costs in London, as we have heard, are much greater than in the rest of the country. For example, a full-time under-twos’ place in London is on average £2,500 a year more expensive than it is in the rest of the UK. We have also heard that the supply of places in London is much more difficult than in the rest of the country. London has the lowest take-up of child care in the country. Given the extent of the growing economy in London, and the vibrant economy that we have always had here, it surprises me that take-up of child care should be that much lower here.

That has a direct impact on London’s maternal employment rates, which I was surprised to see are the lowest in the UK—there is a big gap in the rates—especially given the number of lone parents and other factors in London. That low rate has an impact on individuals, who are not able to fulfil their lives or provide for their families as they would like, and on the London economy, because so many women are out of the labour market. That has an immediate effect on gender pay gaps. It is shameful, or should be, that last year the gender pay gap increased for the first time in 15 years. Women suffer the pay and status penalty for taking time out from work. That should drive us all forward continuously to address fundamental issues to do with child care costs and provision, especially here in London.

The issues are not new. I will not lay all this at the door of the Government. These are long-standing problems that we have tried to address over many years. We have to recognise, however, that some of them have got more difficult over the past few years than they needed to, or than they were. If I may, I will use some of my time simply to ask the Minister questions about Government policy, since we have the opportunity to do so.

Many Members have talked about the two-year-olds offer and its impact, but the take-up of the offer in London is the worst in the country—only 51% of eligible children take up the offer, compared with 75% of eligible children in the country as a whole. What is the Minister doing about that? She has earmarked some new money— £8 million was announced last year—but what will it be used for, and how does she envisage that that will increase places and capacity in the system? Does she feel that the money is enough?

We heard about some unintended consequences of the two-year-olds offer from the hon. Member for Enfield North (Nick de Bois). We strongly feel that provision and planning of nursery and early years places should be decided locally, and put in place in the context of a longer-term strategy. His Government made a mistake in taking those responsibilities away from local authorities.

The new scheme was announced a year ago, but was revitalised yesterday and in today’s Budget. As others have said, Labour Members welcome any new money or investment in child care, because families are desperate for that help, but we must see this in context. On average, families have lost more than £1,500 a year in child care support over the term of the Government, through loss of tax credits and child benefit. Over the same period, nursery and child care costs have gone up by 30%. Taking those two figures together, families are more than £2,000 a year worse off when it comes to meeting their child care costs than they were in 2010. The scheme and the money are welcome, but they will only get parents back to where they were in 2010.

The issue raised by my right hon. Friend the Member for Dulwich and West Norwood (Dame Tessa Jowell) about the Australian model is critical. Will the Minister tell us today what assessment she or her colleagues in the Treasury or other Departments have made of the scheme and whether it will affect price inflation? Will parents feel the benefit of the scheme in the amount that they have to pay?

It would also be fairer of the Government to be absolutely clear about who will benefit from the full amount of the scheme. An average parent tuning in and out of yesterday’s news coverage might be forgiven for thinking that they were going to get £2,000 a year per child for help with child care costs. In fact, the figure is nothing like that. The Government have allocated £750 million a year to the scheme; they say that 1.9 million families will benefit, although in the small print they estimate that the figure will be nearer 1.3 million. Whatever way we do the maths, even the Government’s own figures suggest that the average amount per family on the scheme is somewhere between £400 and £500 a year, which is a far cry from the £2,000 per child that the broadcasters and newspapers were reporting yesterday. Will the Minister confirm that there is no new money for the scheme since what was announced a year ago, which was £750 million, even though the scheme is being extended? Those are the main points that I ask her to cover today.

On the universal credit announcement, as other colleagues have said, we absolutely welcome the plugging of that major gap in the scheme. We have been calling for that for many months. We have to be realistic, however: families on tax credits have seen a huge reduction in their child care support, from 80% to 70% under this Government, and the increase to 85% will not come in until universal credit comes in. We do not even know when universal credit will come on stream for families; it could be 2017 or 2018, and families will have faced a seven or eight-year gap with significant reductions. Will the Minister tell us what steps are being taken to help those families who are struggling with their costs now? Does she recognise that it was a mistake to reduce the rate from 80% to 70% in the first place?

[Ms Buck]

We have not talked about the early intervention grant and children’s centres. On take-up and participation in the offer, certainly in my constituency, a number of parents come through the experience of children’s centres, where they learn to deal with child care, build confidence, and develop their labour market skills. The early intervention grant, however, has been cut by 49% in Westminster. The lights are on in our children’s centres, but no one is home—the tumbleweed is blowing through them, and the services have all been closed—and that is unfortunately impacting on other areas of child care.

[Lucy Powell]

My hon. Friend makes a good point, and I suggest that she tries to secure a separate debate on that issue because of its importance. We welcome yesterday’s announcement, but it needs to be set in context. A remaining real challenge for families is to face these critical issues, which have a real impact on maternal employment rates and the gender pay gap, and that is something the Government should be worried about.

Oral Answers to Questions

Lucy Powell Excerpts

Monday 10th February 2014 Commons Chamber

[Michael Gove]

The evidence is there in the gap between, for example, the performance of independent fee-paying schools and state schools. If one looks at those children who get the best results at the end of primary school and what happens to those who go on to independent schools and those who stay in the state sector, one sees that at the moment those who go on to independent schools are more likely to get good GCSEs and A-levels. A longer school day is one of the ingredients that we believe will make a difference. Great state school heads—for example, Greg Martin at Durand academy—have already come out and explained why, in their schools, a longer school day definitely helps children, particularly those from disadvantaged backgrounds, to catch up with their peers.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

I support the Secretary of State’s wish that school nurseries extend hours beyond the statutory 15 hours a week. Is he aware, however, that 21 local authorities, including my own in Manchester, already provide full-time nursery provision, but that this is being put at risk by funding changes from his Department? Is this not another example of his actions failing to match his words?

[Michael Gove]

I am delighted that so many schools and local authorities provide additional hours, and I work with schools to ensure that more can do so. Where local authorities experience difficulties in ensuring that parents receive the support they need, I want to ask tough questions about the leadership of those local authorities to make sure that they devote the same amount of care, attention and resource to helping disadvantaged children as my Department does.

Oral Answers to Questions

Lucy Powell Excerpts

Monday 6th January 2014 Commons Chamber

[Elizabeth Truss]

I completely agree with my hon. Friend. We are keen that school nurseries, which typically operate two sessions a day, do it more flexibly to help to support working parents so that they can take up three five-hour slots a week that may fit in with their part-time jobs. At the moment, too many school assets are empty between the hours of 3 pm and 6 pm or before school. We can use them better and get better value for money.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

Given that under the hon. Lady’s Government the cost of child care has risen by 30%, or five times faster than wages, and by a staggering £304 on average in the past year alone, what help with these costs is she providing to parents during this Parliament?

[Elizabeth Truss]

The hon. Lady is cherry-picking her statistics. Many studies show that costs have stabilised under this Government, and they are in line with inflation. Her colleague in the House of Lords, Baroness Hughes, admitted that she got it wrong when Labour was in power, when costs went up by £1,000 a year. We have upped the amount of free child care for three and four-year-olds from 12 and a half hours a week to 15 hours a week, supporting hard-working families, but we are not making unfunded promises such as spending the bankers levy 11 times.

Cost of Child Care

Lucy Powell Excerpts

Wednesday 20th November 2013 Westminster Hall

[Lucy Powell (Manchester Central) (Lab/Co-op)]

It is a pleasure to be here under your chairmanship, Mr Hood. I had hoped for my first outing as a Front-Bench spokesperson to be in this Chamber, but we had a similar debate in the main Chamber yesterday. I am hoping that today will be slightly less boisterous than some of our exchanges then.

I thank my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) for securing this extremely important debate. I declare, as she did, an interest—in fact, our children play together at the same nursery, here in the House of Commons. Many Members present share such an interest, in that our children are in child care. Over the past few days, we have seen how important the issue is for many of our constituents, as a debate is now raging throughout the country.

For the record, the Labour party is proud of what we achieved on early years during our time in office, but there was still much to do when we left government. There is no silver bullet or panacea to resolve such difficult and complex issues. The point, however, is the direction of travel, which under the Labour Government was positive and in the right direction, but under this Government has turned back. Ensuring that we have good, affordable and flexible child care is not only critical to families and to closing some of those inequality gaps, but to the economy as a whole, as we have heard from Members today. That is why we need to do more about it.

Instead of repeating the arguments that we had yesterday, I want to take the opportunity to discuss further some of the issues that have been mentioned. We heard from my hon. Friend a cogent argument about the triple whammy facing families: rising costs, falling places and cuts to support.

Since 2010, the number of child care places has fallen by more than 35,000. As the Minister agreed yesterday, we now have 2,423 fewer childminders than in 2009, so places are going down under this Government. We had some debate about Labour’s record on childminders, but I want to put on the record at least once a quote from the chief executive of the Professional Association for Childcare and Early Years, when she gave evidence to the Children and Families Bill Committee:

“The statistic…often…quoted…is not one we recognise in terms of the scale of downsizing of registered childminders in the period that the Minister talks about”—

when Labour was in government.

“Pre-Ofsted registration, childminders were managed by local authorities and registered locally”,

and,

“when Ofsted took over that registration, there was a clearout of a lot of data on individuals who were not practising childminders.”––[Official Report, Children and Families Public Bill Committee, 7 March 2013; c. 99, Q208.]

The Minister also asked why we were not discussing school nursery provision, but we are very much doing so. First, Labour policy is to extend nursery provision to three and four-year-olds for 15 hours a week, which is leading to school nurseries being able to offer that to parents. Members present today, such as my right hon. Friend the Member for Wolverhampton South East (Mr McFadden), mentioned the provision of offers for three and four-year-olds in school nurseries. Our policy pledge is about extending that offer further still.

The figures that we were talking about are for childminders and child care places, but if the Minister wishes to take some credit for Labour’s policy for three and four-year-olds, I am happy for her to do so.

[Elizabeth Truss]

My specific point was that the 35,000 figure cited by the hon. Lady is only that from the Ofsted early years register; there are also nursery places on the schools register for Ofsted, which have not been counted in her numbers. The claim was that there are 1.3 million child care places, but there are actually 2 million, because the two registers were not added together by the Opposition; Labour used only one of the registers in its analysis, so its numbers are wrong.

[Lucy Powell]

I do not want to get into a stats war with the Minister, but the point is that families up and down this country know that it is getting harder and harder to find childminders and quality early-years provision. As the Minister knows, there is also massively increased demand: the birth rate has been rising by more than 125,000 year on year while the Government have been in office. The sector is therefore facing significantly increased demand as well.

On Sure Start, my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) rightly asked the Minister about the figures. The Department for Education’s own press release from June 2010 stated that there were 3,621 Sure Start centres; recently, the Directgov website showed that there were only 3,053. That is where our figures come from—they are the Minister’s own figures. The point being made today, however, is that the issue is not only about the numbers, but about the services being offered, because many Sure Start centres are being downgraded.

I do not want to confuse matters, because there are two separate issues: Sure Start centres and their provision for early-years intervention work; and Sure Start and child care provision. The Policy Exchange paper showed that, in the poorest areas, child care provision is of the poorest quality—that is why the Sure Start provision of child care is of particular importance. It has focused on some of the most deprived areas, where child care quality is at its worst. That is where it is most needed. We still need Sure Start centres that are able to provide child care.

On the model more broadly, the early intervention grant, which provides the funding for children’s centres, will be halved between 2010 and 2015, going from £3 billion a year to £1.5 billion a year. That is what is having such an impact on the services that Sure Start centres are able to provide to new mums. Those centres play a critical role.

I asked a further question about the Sure Start model yesterday, which I hope the Minister can answer today. It was about another critical component of delivering that essential support for new mums—the role of health visitors. The Prime Minister said before the election that we would have 4,200 new health visitors by 2015. Will the Minister update us today on what progress has been made?

I will skip past some of my other points, but I will repeat the request for an answer to the questions asked by my hon. Friends the Members for Stretford and Urmston (Kate Green) and for Scunthorpe (Nic Dakin) about universal credit and its impact on whether the lowest-income families can meet child care costs. Will the Minister also answer those questions?

The Government response seems to have been to do little in their time in office—[Interruption.] I am sorry, but the Minister’s own flagship policy on child care ratios has now been resoundingly dumped by her colleague; we welcome the extension of the free offer to two-year-olds, but delivery problems remain; and childminder agencies are an unknown quantity and an experiment. We will see how they pan out.

The Government’s main flagship policy now seems to be the tax-free child care policy, but that is too little, too late. The scheme is not coming in until the autumn of 2015, and the people who will benefit most from it will be the highest paid—the more people spend on child care and the more they earn, the more they will benefit. It will do absolutely nothing about cost. In fact, there is evidence to suggest that the scheme—putting so much into the system on the demand side, rather than on the supply side—will lead to costs going up further still. I hope for reassurance from the Minister on that today.

Labour has new policies to extend the three and four-year-old offer from 15 to 25 hours a week and around guaranteeing wrap-around care—welcome policies that are a step in the right direction and will help families to meet the child care crunch that they face. As my right hon. Friend the Member for Wolverhampton South East so eloquently put it, such policies are only steps in the right direction—as a country, we face a big challenge, and we will need bigger and bolder policies to address it. Under this Government, we are going in the wrong direction.

--- Later in debate ---

[Elizabeth Truss]

I am sorry, but I will not be able to take interventions at the moment because I want to try to answer all the many questions hon. Members have raised.

Labour claims that costs have risen by 30% since the Government took office. The study that was mentioned also suggested that costs had risen by 50% under the previous Labour Government. Child care costs have been rising year on year, but other recent studies suggest that those costs are now stabilising and have been flat in real terms for the past two years. Across the political spectrum, we need to analyse why we put the same amount of money into our child care system as countries such as France and Germany but parents in those countries pay a lot less—they pay about half the costs that parents here pay. It is not just about the money that the Government are putting in; it is about the efficiency of provision, competition in the child care market and how that market works. I have spent a lot of time thinking about that as a Minister, and some of my plans are aimed at addressing those specific issues.

[Lucy Powell]

Will the Minister give way on that point?

[Elizabeth Truss]

I will briefly, but I want to try to answer all the questions raised.

[Lucy Powell]

I appreciate that the Minister is being generous in giving way. On the basis of the analysis that she has just given, how does she think that giving a tax-free child care offer will address the costs?

[Elizabeth Truss]

That offer will help parents to pay towards the costs of child care. Our reforms to encourage more childminders, more school-based care and more private and voluntary nurseries are aimed at expanding supply. Those two policies go hand in hand.

The hon. Member for Houghton and Sunderland South is not right in her analysis that after-school clubs have declined. In fact, our most recent study shows that they have increased by 5%. One of the issues with the extended schools policy that Labour had before the election was that schools could simply put a link to a child care provider on their website, or something like that, and that would count as providing an extended school place; the school had ticked the box, but there was not really any all-day provision. We are working on aligning requirements during the school day and afterwards, as well as making it easier for schools to collaborate with outside providers, so that they can provide real care on the school site.

It is important that schools are encouraged to use their assets better. It helps children to learn more and supports working parents. We are working hard to encourage more schools to do that. I am pleased to say that, for example, the Harris academy chain has agreed that all its new primary schools will have a school day of 8 am to 6 pm. We need to make provision in a sustainable way that enables schools to mix and match with their school day, so that children have extra learning and extra opportunities for creativity, sports and after-school activities. We are keen to encourage that approach.

A lot of claims have been made about children’s centres. As I said in the debate in the House yesterday, the figures on the Department for Education website are about the management structures of children’s centres. There have been only 45 outright closures. A lot of management structures have been merged but with the centres remaining open. In fact, a record number of parents are using children’s centres—over 1 million this year. That shows the success of those centres.

I wanted to respond briefly to the excellent comments that the right hon. Member for Wolverhampton South East (Mr McFadden), the hon. Members for Scunthorpe (Nic Dakin) and for Newcastle upon Tyne North (Catherine McKinnell) and my hon. Friend the Member for Suffolk Coastal (Dr Coffey) all made about the importance of quality in early-years provision. I could not agree more. We need more highly qualified people in that area. That is why we have developed the early-years educator qualification and are offering bursaries this year for early-years educators—that is, young people with good qualifications who wish to enter the professions of child care and early-years education. We have also matched the entry requirements for early-years teachers to those for teachers. This year we have seen an increase of 25% in registrations on our early-years teacher course because of the higher profile that it has had. That will encourage more good people into early-years education.

This year, we have also started Teach First for early-years provision. For the first time, we have high-quality graduates going into the Teach First programme and working with three and four-year-olds. Some will be working with two-year-olds as well, as those places are rolled out in schools. For example, starting in January, the Oasis academy in Hadley is offering 40 places for two-year-olds with a Teach First early-years teacher. Exciting things are happening in schools to get highly qualified people working with our youngest children. Of course, that is being done in an age-appropriate way; when I visited the class of two-year-olds based there already, they were having their feet painted then running around, and doing other things like that. It is certainly not about two-year-olds studying trigonometry. Some of Baroness Morgan’s comments on the matter have been misinterpreted: the aim is to develop early language skills.

The Opposition have proposals on child care places for three and four-year-olds. My hon. Friend the Member for Norwich North covered those proposals well when she said that the Opposition have already spent the bank levy 11 times. There is no magic money tree for policies such as that one. We have to make sure that we use our existing assets better. We are using schools better and giving new planning freedoms, so that shops and offices can be converted into new nurseries.

We also particularly want to see a revival in the number of childminders. I agree with the hon. Member for Manchester Central (Lucy Powell) that we need more high-quality childminders. One issue is that new people have not been joining the childminding profession and the average age within it is gradually rising. We need good ways to attract new people into childminding. Childminding agencies are one of the ways in which we will be able to do that. The hon. Lady will be interested to hear that we are working on involving children’s centres in our attempts to increase childminder numbers, because we think those centres can help to provide a network and training for childminders. We must also make sure that we use nursery facilities and school nursery facilities better.

The hon. Member for Scunthorpe asked a lot of questions about universal credit. I will reply in writing to him, as I do not think I will be able to answer them in the 15 seconds I have left to speak. But there is a lot of common ground in this debate, and I am happy to share more of the figures and details on this matter with the Opposition to make sure that we are debating on the same terms.

Child Care

Lucy Powell Excerpts

Tuesday 19th November 2013 Commons Chamber

[Elizabeth Truss]

I thank my hon. Friend for his point about children’s centres, which have been a massive success under this Government. Record numbers of parents are using them, we have improved them by focusing them on outcomes and they are really achieving.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

You’re having a laugh.

--- Later in debate ---

[Elizabeth Truss]

I thank my hon. Friend for that point, which illustrates the problem with the child care voucher system.

Let me further point out to Labour Members that in the ’80s and ’90s, when we had a working mother in charge of our country, England was ahead in respect of maternal employment, but we fell behind other countries such as France and Germany under Labour’s watch. Maternal employment rates are rapidly rising under this Government. As Edmund Burke pointed out—the shadow Education Secretary is clearly a big fan—“those who don’t know history are doomed to repeat it”, and if he has not learnt the lessons that people in the previous Labour Government learnt at the time, he will fail, should he ever get the opportunity to be in office. That is why we are reforming the child care system: we are reforming the hopeless legacy that Labour left.

The signs are that what we are doing is working. We are seeing prices stabilising, more places being made available in school nurseries and a revival in childminding. We want parents to have a good choice of options, including nurseries, schools, childminders and children staying at home with parents, or a combination of those. We are introducing much simpler funding and creating a regulatory structure to support modern working parents.

We are determined to reverse the decline in the number of childminders. From this September, good and outstanding childminders will be able automatically to access funding for early education places for two, three and four-year-olds. That means that an additional 28,000 childminders will automatically be funded. I think that addresses the point raised by the hon. Member for Hackney South and Shoreditch (Meg Hillier) about ensuring high-quality childminding.

[Lucy Powell]

Perhaps the hon. Lady will explain why there are 2,423 fewer childminders than there were in 2009.

[Elizabeth Truss]

That is a continuation of the fall in the number of childminders under Labour. We have reversed the policy, starting this September, and the Department for Education is already getting a lot of positive calls from childminders who are keen to offer early education places. There is a great deal of support for that; it helps parents to combine their child care and early education requirements. From this September, we are trialling childminder agencies, which will enable more childminders to join the profession, and they will be fully up and running in September 2014. They will provide training and support, and will be an easy way for parents to access home-based care. We are at the beginning of making significant changes to the way childminders are regarded in our system. What we want to see is an increase in independent childminders and more agency childminders, as well.

We want to expand the level of school-based care, too. As opposed to Labour’s child care mirage, we are allowing real schools to offer real facilities. We are encouraging schools to use their nursery facilities to offer full-time day care rather than just be open for part of the day. We are allowing schools automatically to register two-year-olds, and I saw some brilliant provision for two-year-olds at the Oasis school in Hadley, which opened in January.

We are seeing 8-to-6 schools blossoming. The Norwich free school has a squirrels club, which means it is open from 8 am to 6 pm, 51 weeks a year. I know that the shadow Education Secretary thinks that free schools are a “dangerous ideological experiment”, but I think schools like the Norwich free school are giving hard-working parents the support that they need.

Another example is the Harris chain of academies, which has promised that every new school it opens will operate on an 8-to-6 basis. I am hugely in favour of 8-to-6 provision. It supports working families and helps to increase children’s attainment, but we must do that in a way that is realistic and sustainable for schools. That means making the necessary regulatory changes, aligning the requirements after the school day from within the school day and making it easier for schools to collaborate with outside providers. We do not get anywhere by making false promises that cannot be realised. We are also reforming child care funding so that parents see more of their money, rather than see it wasted. This means that all working parents will get up to £1,200 per child towards child care costs and the provision of 15 hours for three and four-year-olds.

All that is in the context of what the Government are doing to help families with the cost of living: a £705 income tax cut, thanks to our increases in the personal allowance; a £1,000 saving on mortgages because rates have been kept low; £364 saved on petrol for those who top up their cars once a week; and £210 saved thanks to our council tax freeze. This Government have real policies, helping real working parents to manage their lives—not the dodgy numbers, unfunded promises and gimmicks we have seen from the Labour party today.

--- Later in debate ---

[Lucy Powell (Manchester Central) (Lab/Co-op)]

I am grateful to the many colleagues across the House, especially so many male colleagues, who have spoken in this important debate. This is my first outing at the Dispatch Box, and I am absolutely delighted to be winding up on an issue of such importance to so many families across the country.

Labour has a proud record on child care. It was the Labour Government who put child care on the political map and oversaw a revolution in child care provision. My hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier) gave a passionate account of our record. Ensuring that we have good, affordable and flexible child care is critical not only for families facing a cost of living crisis, but for the economy as a whole, as my hon. Friend the Member for Leicester South (Jonathan Ashworth) rightly said.

Unfortunately, things are going backwards under this Government. They are presiding over a child care crunch and failing to support families in work. Under this Government we have seen a child care triple whammy of rising costs, falling places and cuts in support to help parents. Since 2010 the number of child care places has fallen by over 35,000, including 2,423 fewer childminders on the Minister’s watch, all at a time when a rising birth rate is putting greater demand on the system. The failure to supply enough places is impacting on costs for families. The problem of insufficient child care supply is hurting the economy and making balancing work and family life a nightmare for parents.

Many Members have spoken about cuts to their local Sure Start centre. The Government’s own figures show that there are now 578 fewer centres than there were in 2010. That figure is calculated from the Government’s own publicly available records, and I must say that it resonates much more with what we hear is happening on the ground. Let us take the Prime Minister’s back yard as an example. Of the 44 centres in Oxfordshire, 37 are due to close. He once famously said that he would back Sure Start, but for many in his constituency that is yet another broken promise.

I agree with the hon. Member for South Northamptonshire (Andrea Leadsom)—I have a great deal of respect for her and for the work she has done on early intervention—that the issue is not just about the fabric of the buildings; it is also about capacity. I wonder whether Ministers can tell us what progress is being made in increasing the number of health visitors by 4,200 by 2015, which is critical in delivering the Sure Start model.

The crisis in places is leading to price hikes that are making it increasingly unsustainable for parents to make ends meet, as the very powerful account from my hon. Friend the Member for Barrow and Furness (John Woodcock) made clear.

[Mr David Ward (Bradford East) (LD)]

Is the hon. Lady aware that Naomi Eisenstadt, who can be regarded as the mother of Sure Start, told the Education Committee that there were too many Sure Start centres and that phase 3 was spreading them far too thinly?

[Lucy Powell]

I was not aware of her comments, but I completely disagree. As hon. Members have said, this is a very popular service that people raise with us on the doorstep, unlike many other Government policies.

[Andrea Leadsom]

rose—

[Lucy Powell]

I will plough on and give way later.

Under this Government, average weekly part-time nursery costs have increased by 30%. Put another way, child care costs have risen five times faster than wages. In the past year alone, they have risen at more than double the rate of inflation. It is typical of the Government to pretend that things are going well when the reality is that many parents are finding it an incredible struggle to find and afford the child care they need. On top of the crisis in places and hikes in costs, parents have also seen their support fall. Families with two children have experienced a reduction of about £1,500 a year in tax credits, hitting low-income families the hardest. At the time of the 2010 spending review, the Office for Budget Responsibility warned the Government that cuts to child care support would have a negative impact, saying that they would

“affect the hours worked and participation in the labour market”.

Yet the Government have taken no notice and parents face an increasingly difficult child care crunch.

[Mr Marcus Jones]

Will the hon. Lady give way?

[Lucy Powell]

I am going to make some progress.

Let me turn to the Government’s response. They may have deleted reference to it from their website, but the Prime Minister once promised that they would be

“the most family-friendly Government…ever”.

Yet they have wasted three years doing very little. The Minister’s flagship agenda on ratios has been abandoned; the nursery offer for disadvantaged two-year-olds is being met with delivery problems; and their tax break scheme is too little, too late and benefits the richest the most. On child care ratios, the Deputy Prime Minister agreed with us that changing ratios could even increase prices. He said that the evidence was “overwhelmingly against” changing the rules on ratios, and went on to say:

“I cannot ask parents to accept such a controversial change with no real guarantee it will save them money—in fact it could cost them more.”

While we welcome extra support for disadvantaged two-year-olds, one in three councils tell us that they do not have enough places to meet this policy.

Childminder agencies are up in the air, with no clarity about how they will work or what they will do. The Minister is running 20 pilots across the country. So far, we know that at least two of those pilots will charge, although we do not know who will bear the cost. Will Ministers give us a guarantee that childminder agencies will not push up prices for parents?

The Government’s tax-free child care policy is too little, too late for parents. The extra investment in child care the Government are promising is dwarfed by the £7 billion a year of cuts they have already made for families with children. The scheme does not start until 2015, and it excludes families with children over the age of five. It benefits families earning up to £300,000 a year, helping the richest the most while leaving low and middle-income families struggling to make work pay, particularly for second earners. This policy will do nothing about costs.

By contrast, Labour has a plan to tackle the child care crunch. Our policies will make a real difference to mums and dads, get our economy moving, and help parents to tackle the logistical nightmare they face. As my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) rightly pointed out, seven out of 10 mums said they would work were it not for the high costs of child care. Expensive child care is acting as a drag on our economy. If our employment rate for mothers moved up to the average of the world’s top five nations, 320,000 more women would have jobs and tax receipts would rise by £1.7 billion a year. The Government gloat about their record, but most of the jobs they have created for mothers returning to work are part-time, low-paid jobs. Over 1 million of those people want to return to full-time work, but the full-time jobs do not exist.

Labour Members take the child care crunch seriously; we are not as complacent as Government Members. We would expand free child care for three and four-year-olds from 15 to 25 hours per week for working parents. That is worth over £1,500 a year. This is a fully costed Labour commitment. We would pay for this policy by ensuring that the banks pay their fair share, increasing the bank levy to an extra £800 million a year.

For school-aged children, many parents increasingly struggle to find decent before and after-school child care. The Government abandoned our extended schools programme. We will set down in law a guarantee that parents can access wraparound child care through their local school if they want it. This will stimulate innovation and collaboration to meet the logistical nightmare described by Members today.

Child care is at the heart of the cost of living crisis for many families. While parents cry out for action from this Government, all we have seen is in-fighting and prevarication while costs have soared and provision fallen. Our offer of 25 hours free child care for working parents of three and four-year-olds will make a real difference to families struggling to make ends meet. I hope colleagues on both sides of the House will support our motion.