Childcare Bill [ Lords ] (First sitting)

Alex Cunningham Excerpts

Tuesday 8th December 2015 Public Bill Committees

[Pat Glass]

You know what, I do not go back that far, but I am happy to concede the point. I do understand, going back an awfully long way to the 1970s, that local authorities were unable to provide nursery education; it was the former leader of the Conservative party, Mrs Thatcher, who introduced that. I am happy to concede those points.

[Alex Cunningham (Stockton North) (Lab)]

On that point, there was a Conservative Government for 18 years and it took them 17 years to get to the point of believing that free childcare was necessary in our society. Could they not have come up with it a wee bit earlier? They left it to a Labour Government to deliver it.

[The Chair]

Order. Can we keep to the amendment and not make this political?

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[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

There are only 1.4 million three and four year-olds in the country—therefore there cannot be 1.4 million parents. The hon. Lady should check her figures, because they are incredibly wrong.

[Alex Cunningham]

It takes two parents to make a child.

[Pat Glass]

Well, most children, although not all, have two parents. I am happy to check that, but I did say that it was an early analysis of the thresholds changing.

The biggest issues are the massive question marks that we hope the Minister will be able to resolve. On Second Reading I said that even during the passage of the Bill the Government’s manifesto promise of 30 hours’ free childcare had been whittled away. Thresholds and delays have increased. The gap remains between what the Chancellor has made available to pay for this and the real cost.

Childcare is vital to our future success. We need our brightest and most able parents to be part of the recovery of our economy and to help it grow. We need good-quality, inclusive, accessible and affordable childcare to help us close the developmental gap pre-school, which is critical to a child’s development and their outcomes throughout their life. High-quality, flexible childcare is critical not only for the economy, but for the child’s wellbeing and development. I am happy to say that, across the House, we have made great strides in childcare over the past 20 years. I would tend to suggest that the Labour Government did more, but I am happy that this Government are going to make their contribution now.

Important policy challenges remain. Our rates of maternal employment, particularly for mothers with children aged one to four years, are poor compared with those of other OECD countries. In not supporting our brightest and most able mothers back into the workforce, we risk our future economic stability. Over one third of mothers who want to work say that they are unable to do so because of high childcare costs. Two thirds of mothers would like to work more hours but are unable to do so because of unaffordable childcare bills. That is particularly true for second earners, as the Resolution Foundation and the Institute for Public Policy Research have illustrated.

Let me give an example from my family. When my daughter-in-law had three small children, she told me that she was spending almost all her salary—she is a head teacher—on childcare. If that is true for head teachers, it will be doubly true for families on lower incomes. Many mothers still face a pay and status penalty in the labour market for having children, yet increasingly work is becoming the only option for both parents, as pressures on family budgets have increased. For families up and down the country the chances of keeping their heads above water, let alone owning their own home and providing the security that their family needs, depend on both parents working. According to the Joseph Rowntree Foundation, single-earner households are now more likely to be in poverty. To boost our economy and give families the chance of a decent job, home and income, childcare investment is essential.

High-quality childcare is also vital in tackling disadvantage. We know that many of the most disadvantaged five-year-olds are starting school 18 months behind their peers. That gap begins to open up at 24 months and by five years old our brightest children from our poorest homes are already falling well behind less able children from more advantaged homes. This is wrong; it is a waste, ultimately, of talent, and it holds back our whole economy.

Good childcare could close that gap and give children a firm foundation for school and later life. However, it is a fact that sometimes the two aims of economic output and early education require different policy solutions. They are too often conflated, and sometimes seeking to improve one element can come at the expense of the other. Our concern in scrutinising and challenging the Bill is that getting more women and more mothers back into work does not come at the expense of children’s development. That is why supply-side support, such as extra hours, is a good way to deliver both. Tax-free childcare, although some way—

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[Pat Glass]

Now I am even more confused because I want to know where the £1 billion is that the Minister is talking about. My understanding is that the figure is £650 million, but I can come on to that in some detail because I think the Government are all over the place on costs. The Minister is going to show us how he will do the basic maths on this. I have an MSc in maths and, quite frankly, I am confused about this. I always think I am reasonably good at this sort of stuff, but I am absolutely confused.

[Alex Cunningham]

The IPPR says that the Government’s policy costing of £365 million in the first year is inexplicably low compared with other estimates, as well as with current funding. They warn that any

“shortfall could drive down childcare quality and leave the needs of working families unmet, with poorer outcomes for children and less choice for parents as the market shrinks”.

Surely an organisation such as that is clear about its figures.

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[Pat Glass]

Okay. We have real concerns about funding, capacity, the workforce and many other issues. The devil, as we know, is in the detail, and the clause, as it stands, is absolutely without detail.

[Alex Cunningham]

Directly on amendment 10, there was an independent parliamentary inquiry into childcare for disabled children, which highlighted the continuing failure of the early years system to provide adequately for children with special educational needs and disabilities. Does my hon. Friend agree with me that for that reason, we need the amendment that has come from the Lords? The Lords have made it clear that we need to look into the detail, and understand exactly what we are doing and the related costs so that we can provide for all children, including disabled children.

[Pat Glass]

That is right, but I also understand that the review mentioned in clause 1 is about reviewing the sustainability and financial support for the Bill. The Lords were concerned that the Bill was not sustainable without looking at the issues of funding, the workforce and the capacity of the industry to deliver the provisions of the Bill. I am trying to tease that out. There are serious issues with capacity in the workforce. Nurseries tell me that they cannot recruit the level 3 students that they need to deliver the 15 hours.

There are serious issues around cross-subsidy. At the moment, nurseries are delivering the free 15 hours by charging beyond the 15 hours for parents who want more than 15, so anybody who gets more than 15 hours is basically subsidising the Government’s 15 hours. If the ability to extend that is taken away because nurseries have to offer 30 hours, the only way in which they can deliver is by charging substantially more for babies, one-year-olds and two-year-olds. There is a real concern that if the provision goes through without the adequate funding, the Government will be putting us in a position whereby women returning to work after maternity leave will not be able to afford childcare because the costs for younger children will rise sharply and dramatically.

[Pat Glass]

It is, but one problem is that the Bill has come through as an education Bill; yet, this small Bill with a few clauses largely appears to be an economic Bill about getting people back into the workforce. I do not see children anywhere in the Bill. Children’s development should be central to it . We should not be giving one at the expense of the other.

[Alex Cunningham]

I am grateful to my hon. Friend for giving way and I am also grateful to the hon. Member for Norwich North for raising the issue of fathers. My son and his partner pay £41 a day for childcare, which, if my grandson is there for five days, is £205 a week. How will they be able to benefit from a scheme like this if it is not properly funded?

[Pat Glass]

That is at the core of our concerns. We are concerned that if the Government remove the review, issues such as the capacity of the workforce and buildings, who will get access, eligibility and so on may mean that the funding will simply not happen. Can the Minister explain in some detail—he has not been able to so far—where the funding is coming from, what it will be spent on and whether the second 15 hours will be the same as the first 15? How will he improve the capacity in the workforce at a time when nurseries are already struggling to recruit qualified staff for the first 15 hours? All those issues would be in that review. If we lose that, there is a danger that we will have no detail and that, ultimately, this very well meant and excellent policy will result in less provision, less choice for parents and less quality in the provision for children. Ultimately, that will have a detrimental effect on children’s development, particularly for our most disadvantaged children, who are getting the least out of the system as it stands.

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[Pat Glass]

Sorry, I meant amendment 10. I think we can all agree that increasing access to 30 hours of free, good-quality, inclusive childcare will benefit all children, but the amendment would ensure that all children and not just some can benefit from the policy. The reality is that many children, and many disabled children, do not benefit from or get access to their 15 hours of current entitlement.

The Minister will know that I chaired a parliamentary inquiry in 2014 into childcare for disabled children. I am not sure whether he has read the report or the recommendations that came out of the inquiry, but he is yet to act on them. On Second Reading I said that I was not shocked by the findings of that inquiry, but deeply saddened and disappointed that so little value is placed on our disabled children and their families and that things have not improved for them as they have for the rest of us.

The thing that I am most proud of with the inquiry I chaired is that it is no longer possible for anyone—Ministers, Department for Education officials, council officials, head teachers, teachers or childcare providers—to say that there is no problem and that everything is okay, because it is clearly not okay. Department for Education officials appeared before that inquiry, and they were still trying to tell us that there was no problem and that there was sufficient legislation to ensure that every disabled child could access the 15 hours of childcare. The inquiry and the follow-up report, “Levelling the playing field”, showed that for disabled parents that is absolutely not true.

Some 40% of families with disabled children are not able to access the current free childcare offer of 15 hours a week. That percentage is 10 times more than that for families with a non-disabled child. Of the families who say that they are not taking up the 15 hours of entitlement, more than a third said that was because they did not think the childcare provider could care for their child’s safely. There is a serious issue that needs to be addressed on the qualifications and experience of childcare workers working with all children and, in particular, with disabled children, and later amendments will seek to address that.

[Alex Cunningham]

I know the passion that my hon. Friend has for childcare, particularly for disabled children. One in five councils apparently report that they do not have enough childcare for disabled children in their area. Is that not all the more reason why we need a comprehensive review over the next few months to ensure that we can understand the real provision that is available and take measures to fill the considerable gap?

[Pat Glass]

I agree, and I thank my hon. Friend for that intervention. There needs to be a comprehensive review, not just of the costs of childcare, but of funding, the kind of childcare that will be offered in the additional 15 hours and what is happening to those children who cannot take advantage even of their existing entitlement. That is why we would like the amendment to be made.

Of the 38% of parents who did not take up the childcare offer, 30% did not think that the childcare provider had adequately trained staff to meet the needs of their child. A quarter said that the nursery or childcare provider refused a place or excluded their child purely because of their disability or special educational needs. That is illegal under the Disability Discrimination Act 1995, but it has been going on for many years. Nothing will change unless we in this House do something to stop that happening. The Government have given us lots of nice warm words on that, but little action. As my hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) said on Second Reading,

“warm words butter no parsnips.”—[Official Report, 25 November 2015; Vol. 602, c. 1441.]

My Irish grandmother used to say that warms words do not buy the bairn a bonnet, but the meaning is the same: we need decisive action to improve the situation for the families of disabled children.

For the children who were refused a place or were excluded, nearly half—49%—said that the childcare providers had claimed that they could not meet the child’s additional needs, although no evidence was given of what reasonable adjustments had been considered. Parents were simply being turned away.

One parent I saw told me that she, living in London, had tried 50 childcare providers, some of them maintained, and they had all said that they were full; they said that they did not have a place, although they seemed to have places for children who did not have a disability. Some 47% of those who said that their child needed one-to-one care or other additional support were told that that support was not available to them, or not available at a cost that was affordable.

The parents of disabled children are often charged higher-than-average fees: 80% reported paying £5 an hour or more for childcare; 38% said that they paid £11 to £20 an hour; and 5% reported paying more than £20 an hour. That is in comparison with the national average of £3.50 to £4.50 an hour. The inquiry heard from parents who had been forced to give up work because they could not afford suitable childcare, and from parents who had had to give up their jobs and move to other parts of the country to get help with childcare from family members, because that was the only way in which they could work.

One couple I saw had an autistic child. They had a business in London, but they had to shift their entire business to Cornwall so that they could get access to childcare from relatives. That is not good for them, for our economy or, certainly, for their child. Access to good-quality childcare is important to all families, because it has a positive impact on children’s learning outcomes and enables parents to work. For families bringing up a disabled child, however, access to good-quality childcare is particularly significant, because such families are far more vulnerable to living in poverty than most.

Childcare for children with a disability is frequently a trigger for poverty, because such families incur considerable additional and ongoing expenses relating to their child’s disability and they often encounter significant barriers to entering and, possibly more importantly, sustaining employment. Disabled children are more likely to live in poverty, because it costs three times as much to raise a disabled child as it does to raise a child without a disability; the families of disabled children are 2.5 more likely to have no parent working for more than 16 hours a week in paid employment; only 16% of mothers of disabled children work, compared with 61% of all mothers; 83% of parent carers say that the lack of suitable childcare is their main barrier to work; and only 28% of local authorities say that they have sufficient childcare for disabled children, compared with 54% for all children under two, 69% for three and four-year-olds and 35% for children aged five to 11.

The inquiry I chaired made a number of important recommendations. They were not big asks. We asked the Government to take a number of steps that would begin to improve childcare for disabled children, such as undertaking a cross-departmental review of funding to identify where support needs to be improved to meet the extra costs. We did not ask them to come up with the money; we simply asked for a review to find out where the gaps are. That would have been easy for the Government to do—just to undertake a review—but it did not happen.

We asked the Government to introduce a requirement for local authorities to publish, as part of their special educational needs local offer, information for parents and providers on access to childcare inclusive of support. We simply wanted the Government to ask local authorities to publish their information on what is available and where but, again, that did not happen.

We asked the Government to write to local authorities—simply a letter—to make it clear that all eligible disabled children aged two, three and four were entitled to access their 15 hours of free childcare and to clarify the arrangements for redress. We only wanted the Government to remind local authorities that they were under a duty to ensure that disabled children could access their 15 hours and to tell parents what they could do if they were unable to get that childcare but, again, that did not happen.

As I said, those were not big asks. I do not know whether the Government did not agree with those three simple actions, or whether the suggestions simply got lost among the many other things that the Government have to do. However, the situation remains the same for families with disabled children. High-quality, flexible childcare helps children’s education and social development and enables parents to maintain paid employment, but it remains a pipe dream for many families with disabled children.

Over the past 20 years we in this House have, collectively, improved things for working mothers—I am not saying that we have made things easy, but we have improved them. I have only ever had one child, and I go back a long way, so there was no such thing as maternity leave when I was pregnant. People had to leave their jobs and then reapply for them three months later, or however long it was. If they were lucky, the job was there; if they were not, it was not, and they had to go somewhere else. At the time I had to work, because I was on my own with a little baby.

Over the years, therefore, we in this House have, between us, really made a difference and improved things for working mothers. We now have maternity leave and maternity pay, paternity leave and paternity pay, childcare, improved nursery access and children’s centres. All those things have improved the situation for working parents. However, for parents of disabled children, there has been little—perhaps even no—improvement.

That is something that we, collectively, can do something about. We can make things better for the families of disabled children. We are asking the Government not to spend money, but to look at the additional childcare costs for those families and reflect them in the funding provided. That is the kind of thing that the people who voted for us wanted us to come to the House to do; they wanted us to make a difference to the lives of those people. That is certainly why I came here.

The amendment tries to reflect the true costs of childcare for disabled children. The Government have already acknowledged the additional costs and acknowledged the principle in their tax-free childcare policy, so they need to reflect the costs for disabled children in this policy too.

[Alex Cunningham]

My hon. Friend will be aware of the report “Levelling the playing field” from Contact a Family, which talks about the early years single funding formula provided to early years settings being extended to include a mandatory supplement, like schools’ notional special educational needs budget, to help early years settings provide support for disabled children. Is that not one of the ways forward that the Government should consider as part of a longer term review?

[Pat Glass]

That is what we are trying to do as part of the amendment. We want to acknowledge the additional childcare costs that exist for families with a disabled child and to have the issue included in the review.

The amendment asks the Government to look at the additional costs of childcare for disabled children and to consider providing additional funding and additional flexibilities so that such children can access what they are entitled to. Many families cannot access their 15 hours’ entitlement. Many of the families that came along to the inquiry told me that they would get five, or perhaps seven, hours of childcare. For them, extending free childcare to 30 hours, when they know they will still get only five or seven hours, actually makes things worse.

We are asking for no more than that the children of these families can access what they are entitled to, like any other children. As I said, the principle has already been established. Minister, we can make things better for these families, who get very little, and we can do that collectively, so let’s do it.

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[Jess Phillips]

The shortfall has been identified by the Pre-school Learning Alliance in its research. I can only work on the evidence that has been given to the Committee. There is already a clear shortfall with the 15-hour provision, which is why nurseries tell us time and again that they use other people’s fees to subsidise their rates. The cost of childcare has increased over the past five years.

[Alex Cunningham]

Would my hon. Friend be surprised to find out that in the Minister’s constituency, childcare already costs £4.85 an hour? That is today, at 2015 at prices. There is a tuppenny shortfall today; what is it going to be like in future?

[Jess Phillips]

Also, although one welcomes some of the increases in wages that the Government have instigated, they have to be taken into account in the cost of childcare provision. If the cost is already £4.85, by 2017 something will have to give. There is undoubtedly a shortfall. I really hope that the Minister proves me wrong, and that there is no rise in childcare costs for children aged nought to three. However, the evidence suggests that something quite different will happen. All I am asking is for reviews to be put in place to ensure that the Government take any rise in childcare costs into account in their policies, and perhaps that they adjust things to make the situation fairer.

As I have said, where I live, the average wage and the average cost of childcare mean that women pay 103% of their salary towards childcare and men pay 90%. I recognise the comments made by the hon. Member for Norwich North about a society in which men are also child carers. My husband is, and has been almost exclusively since my children were aged three, the full-time carer of my children. However, the simple fact is that is very uncommon, thanks to the gender pay gap. When parents have to decide who goes back to work, they usually do so on the basis of who earns the most money. Unfortunately, that is usually not the girls.

The cost of childcare where I live is a problem in itself, but the Government’s costing of the 30 hours of free childcare has the potential to push that burden even further, to the point where it will be completely unrealistic for the lowest earner in the household to maintain employment. It will be no surprise to anyone here that the lowest earner in most households is usually a woman, and there is a real threat that the rising cost will prohibit women from returning to work for the first three years after they have had their baby.

It should not be a shock to anyone in this room that women’s time out of the labour market is the single biggest contributor to the gender pay gap. For my constituents in the west midlands, where the national trend of the narrowing of the gender pay gap has not quite reached us, last year the pay gap grew from £98.90 per week to £105.60 per week. It is getting worse, not better. The Women and Equalities Committee, of which I am a proud member, is undertaking an inquiry into the gender pay gap. Although I do not want to pre-empt any of the report’s findings, I can guarantee—

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[Jess Phillips]

I apologise for going on to my favourite subject. I can almost guarantee that the findings of the review will show that the cost of childcare and women’s time out of the labour market are major driving factors behind the gender pay gap. There is real potential for the Government to exacerbate that with the proposals in the Bill, rather than helping matters, if they are not properly funded.

[Alex Cunningham]

There is another issue as far as income is concerned, because those who work in the care sector are predominantly women. If the proposals are not properly funded, one of two things will happen. Either wages will be screwed down and people will lose income, or there will be an increased ratio of children to adults in childcare settings. Both those ideas are unacceptable.

[Jess Phillips]

I totally agree. Without a proper funding structure, if the clause stands part of the Bill, we will need a real focus on quality. Any one of us who has ever left their children with a childcare provider wants to know that their kids are in the best care possible. For those of us who can afford it, sometimes the best care costs a bit extra.

Will the Government commit to a review of the rising cost of childcare for children aged nought to three, and of the issue of women dropping out of the labour market while their children are that age? Will they adjust the funding scheme accordingly if it is found to affect families negatively? For the same reasons, will they also review the rising cost of wrap-around care? The same private sector providers will often provide before and after-school transport as well as the 30 hours of childcare. If there is a shortfall, there will be a knock-on effect for all nursery costs.

To further assess whether the Government have their sums right, they could conduct a simple review of the number of places in the private sector and, more importantly, the maintained sector, when the 30 hours provision comes into being. My children both received 2.5 days a week of free early years education for a year, in a brilliant maintained nursery setting attached to the school that they both now attend. The nursery operated 45 places for school hours on Mondays, Tuesdays and Wednesday mornings, and a further 45 places for Wednesday afternoons and school hours on Thursdays and Fridays. I do not know why more nurseries do not do it like that, because it seems much better for parents. Having 2.5 hours each day seems as useful as a chocolate teapot to me.

The nursery building that my children attended simply could not manage 90 children for the full 30 hours of a school week. No matter how tiny their little bottoms are on the mats, there is no way that 90 children would be able to go there Monday to Friday. That means that the brilliant, highly sought-after maintained nursery where I live, which is helping many disadvantaged children, has a brilliant special educational needs service and offers a service to disabled children, will go from being able to offer 90 places to, most likely, being able to offer 45 places. That will reduce the availability of childcare in an area where it is really needed.

We cannot just say that we will build extra room on the side. Not only will the £500 million that has been allocated for capital funding not touch the sides for the whole country, but there just is not enough space in city schools such as the one my children attend. Last week, I visited Yardley primary school in my constituency. It is being pushed to go to five-form entry. I imagine that the idea of a five-form entry primary school is probably not that likely in the constituencies of most Conservative Members.

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[Alex Cunningham]

Even if there were the physical space, I wonder about the availability of sufficiently trained staff. There is greater demand from parents who want higher-quality staff, but there seems to be no plan to provide staff. That is all the more reason why we should review the measure over some time.

[Jess Phillips]

I think we have time to do that before the roll-out in 2017. I do not wish to delay it any further than 2017, and the Government have the time to make it right. On the training of staff, speaking from personal experience—my son has special educational needs; he has Asperger’s—I want to ensure that people who work with children such as my son every day have the training, qualifications and skills to make their lives and his life a little simpler, although I have not managed it yet.

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[Christian Matheson (City of Chester) (Lab)]

I apologise for making the schoolboy error earlier of not turning my phone to silent and therefore disrupting the Committee. I meant no disrespect, Ms Dorries.

I would have expected the Government to welcome the opportunity of a pause and a review because it would provide a breathing space for them to dig themselves out of a hole. We should remind ourselves of the genesis of the policy of 30 hours a week of childcare which, in common with my hon. Friend the Member for Birmingham, Yardley, I genuinely welcome. The political genesis of the policy was that my party had offered a fully costed and prepared proposal for 25 hours a week, and the Conservatives entered the general election campaign determined to trump that with 30 hours a week, yet without doing the sums to work out where the money would come from, so I would have expected the Minister to welcome the proposal for a review and pause.

[Alex Cunningham]

Will my hon. Friend give way?

[Christian Matheson]

That would be handy, because I need to read something from my iPad, which has turned itself off.

[Alex Cunningham]

I am not sure that that was the role that I had intended to undertake.

The Government have said 30 hours, which trumped our 25 hours, but is that not to be welcomed? An extra five hours a week is a tremendous figure. We want the scheme to work, but we want it to be funded, and all the organisations are saying that there is not enough money and that the estimates are based on the wrong data. The Government need to get it right so that we can all celebrate the wonderful fact that the Tories have trumped the Labour party.

[Christian Matheson]

I thank my hon. Friend for that intervention. I also thank the Minister for, and congratulate him on, the extension to 30 hours, which will be welcomed by parents up and down the country, as long as it works. I do not wish to be churlish and I hope that my comments will be taken in the spirit with which I offer them.

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[Mr Gyimah]

The hon. Lady talks about the money paid to local authorities. I was making the point that no parent will be worse off in terms of the childcare that they get.

I will come to this in more detail later, but we have announced that we will consult on an early years national funding formula to ensure that we smooth out the allocations for local authorities. It is not fair that one local authority can get £9 an hour and afford to offer 20 hours’ childcare, while another local authority, such as in Birmingham, gets £5 an hour. We need to ensure that a local authority gets the funding that reflects the needs of the children in that local authority, rather than the amount being based on history, as is currently the case. I will come to that point in more detail later.

[Alex Cunningham]

What the Minister said was quite helpful. In Mid Dorset and North Poole, a week’s childcare costs £94, whereas in the Minister’s constituency of East Surrey, that costs nearly £180. If local authorities are not properly funded to take local circumstances into account, how on earth can they provide the cover that he wants?

[Mr Gyimah]

The hon. Gentleman raises precisely the point I am making: we want to fund local authorities fairly to take account of local circumstances. The current funding formula is based on historical fiat and historical local spend; it does not reflect local need. In addition to increasing the hourly rate, we want to consult on a national funding formula to ensure that local authorities get funds that reflect their needs.

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[Alex Cunningham]

In Surrey, the cost of childcare has gone up by 36% in the past five years. It will cost £9,000 for a family with one child to access childcare in Surrey. Is the Minister saying that he will ensure that the county council for the constituency he represents as a Member of Parliament will have sufficient money to fund that level of childcare in the future?

[Mr Gyimah]

Let me put the hon. Gentleman’s mind at rest—I am glad he is taking so much interest in my area, rather than his. As a result of the combination of policies that I have talked about, a parent could get up to £40,000 of subsidy towards their childcare for two children. That is how far the Government are going to subsidise parents with the cost of childcare.

We are discussing amendment 10 and clause 1. I understand the arguments made by some members of the Committee about funding for disabled children and children with SEN to support them in accessing the free entitlement, but let me be clear that I do not believe that clause 1, on the funding review, should remain in the Bill.

Before I address the key points, I want to thank hon. Members for their contributions. I particularly thank the hon. Member for North West Durham for her extensive work on improving access to childcare for disabled children. That is clearly an area of her expertise and I thank her for her contribution to the debate. I also want to put on record that, beyond our line-by-line scrutiny in Committee, I want to work with her and officials on how we can improve access to childcare for disabled children, so I invite her to the Department to discuss that.

I want to be very clear that the Government believe that parents with disabled children should have the same opportunities as other parents via increased choice of and access to high-quality childcare. The Government’s commitment to improving the system for children with SEN and disabilities was strongly demonstrated in the previous Parliament, during which we legislated through the Children and Families Act 2014 to introduce the biggest reform to the SEN and disability system for 30 years. The reforms, which introduced a nought-to-25 system, with an emphasis on early identification and the importance of integration between education, health and social care for children across the age range, were supported on both sides of the House.

[Mr Gyimah]

I am coming to precisely that point. The changes will not solve all issues in the system overnight, but they are at the early stages of implementation and are starting to make a real difference for families. As I pointed out in relation to funding for parents of disabled children, tax-free childcare for families with disabled children will provide support of up to £40,000 until the child turns 18. So, from nought to 18, a parent with a disabled child will get twice the allowance that a parent with a non-disabled child will get through tax-free childcare.

I recognise that the extensive work carried out by the parliamentary inquiry into childcare for disabled children, co-chaired by the hon. Member for North West Durham, found that some parents have difficulties accessing childcare. That is disappointing. I am clear that the entitlement to 15 hours’ early education is for all children. It is not acceptable for children with disabilities to be unable to access their entitlement.

[Alex Cunningham]

As the Minister knows, 40% of families with disabled children are not accessing care, which is 10 times more than in the wider population. I accept that there is sufficient money, but how do we ensure that there is the expertise needed in all our nurseries to provide the expert care that meets the specific needs of disabled children?

[Mr Gyimah]

The hon. Gentleman makes a good point. The truth is that disabled children have very different needs. There are a range of needs, which is why I would like to work with the hon. Member for North West Durham.

I will develop my argument further on how we can make sure we have the right expertise in the right setting. For some disabled children there needs to be an overlap between early education and nursing care, and in some situations there also needs to be a speech and language therapist, or a music therapist, on hand. There is no one-size-fits-all approach to childcare for disabled children. We need to work out the right way to do this, and if the hon. Gentleman will bear with me, I will make some suggestions during my speech.

Local authorities are required by law to secure free entitlement places for parents who want their children to take them up. There is a clear legal position enabling all three and four-year-olds to receive 15 hours of early education, and it is clear in the Bill that all such children are eligible to receive an additional 15 hours. Local authorities are also under a duty in the Childcare Act 2006 to ensure that there is sufficient childcare in their area. The requirement is for all children, and it is not acceptable if there are no places for children who have additional needs.

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[Mr Gyimah]

If a childcare provider wants to say to parents, “This is how we price; it is a market,” parents can pick and choose the spots that work best for them. We are saying that there is more scope to look at under-occupancy. It may work for some providers and not for others. We will work with the sector on that.

As I said, the review had extensive input from the whole sector. I will name some of the key organisations that provided input: the National Day Nurseries Association, the Professional Association for Childcare and Early Years, the Family and Childcare Trust and Contact a Family, as well as providers that attended round-tables that we held in the summer. The review does not just reflect costs in the south-east and London, because those round-tables were held around the country. I would like to take the opportunity to thank everyone who contributed to such a significant achievement, with the review being the first of its kind.

We are debating the impact of the provisions on children with additional needs, and the review also considered the impact on the cost of provision for children with special educational needs and disabilities. We held thematic discussions on childcare for children with additional needs, including special educational needs and disabilities. The review found that the nature and level of support required by those children can vary significantly, as does the prevalence of additional needs across each setting. The cost estimates reported in the review made allowances for some of those factors.

Our analysis of the responses to the call for evidence also highlighted that providing for children with additional needs, special educational needs and disabilities drives up costs for providers, particularly salaries. That is because children may need more one-to-one support, and there may be a need for greater involvement of other services—for example, health services or therapists—to support the provider in caring for the child. I saw that for myself when I visited Bath Opportunity pre-school, a specialist nursery providing childcare for children aged nought to five with a range of additional needs. The pre-school delivered excellent care for the children, but it was clear that the cost of delivering that care depended on children’s level of need. To deliver that care, the provider needs to work closely with a range of agencies, supported by the local authority to access funding from the high needs block, which is for ages nought to 25.

[Alex Cunningham]

The Minister heard me raise earlier the issue mentioned by Contact a Family, about the early years single funding formula. Is he saying that the higher-level funding will compensate and provide sufficient funding for people with a disabled child, who are finding the costs extremely high?

[Mr Gyimah]

First, I have outlined how parents could get tax-free childcare. Secondly, we confirmed in the spending review that there will be protection for high-needs funding, which will ensure that it rises in proportion to the number of children, including those under five. For parents with disabled children, there will be a number of funding sources to help them buy childcare provision based on their needs.

[Alex Cunningham]

Is the Minister reassuring the Committee that a person with a disabled child will not be disadvantaged financially in any way whatever, in comparison with a person with a child who does not have a disability, when they come to buy childcare?

[Mr Gyimah]

By having tax-free childcare and the high needs block, and also by having increased the hourly rate, we will ensure that local authorities continue to have the flexibility to target funding where it is most needed to help children with disabilities and their families, including the youngest children.

[Mr Gyimah]

The hon. Lady pre-empts my next point. When it comes to funding for children with additional needs, we know that one size does not fit all. That is why I have committed to considering early years funding for children with special educational needs and disabilities as part of our wider consultation on allocation and a fairer funding system in 2016—specifically to look at the issue that the hon. Lady points out.

However, we also know, going back to a previous point, that access is not just about funding. We have heard throughout this debate that although funding is important, it is not the only issue. I am sure that in a later debate we will talk about how the workforce support children with additional needs, but the way in which local authorities and providers work together to ensure that all children access their entitlement goes beyond funding into how services work together and how the workforce are supported. I therefore want very clearly to commit that as part of our early implementation of 30 hours from September 2016, we will seek to encourage innovative approaches to providing flexible childcare for working parents whose children are disabled or have special educational needs. I am sure that the hon. Lady will have a view on that when we sit down to discuss how we can make that happen.

I would now like to talk more widely about clause 1 and why I do not believe it should stand part of the Bill.

[Alex Cunningham]

I am grateful to the Minister for taking another intervention. He said about 10 minutes ago that he would address the issue of staffing to ensure that there is the necessary level of expertise in nurseries so that they can offer appropriate support for children with disabilities. I do not know whether he intends to address that later in his speech, but it appears that he is moving on, so I would appreciate it if he addressed it now.

[Mr Gyimah]

I believe that there is an amendment specifically on the workforce. When we debate that, we can debate all the staffing issues together. I want to focus on amendment 10 and clause 1.

Clause 1 was introduced in the other place in response to concerns about a lack of detail about how the Government would fund their commitment to provide 30 hours of free childcare for three and four-year-olds. Critically, it was also about the opportunity to scrutinise how that would be done. Before the Bill was introduced, we committed to increasing the rate paid to providers that was announced by the Prime Minister in March, and to a comprehensive review of the cost of childcare.

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The Government need to announce funding rates for local authorities in 2017-18 by the summer of 2016, so that local authorities can develop their own single funding formula for providers and consult them. Another review would not only delay childcare to the tune of £5,000 per child for parents, but would make it difficult to enable local authorities to prepare in advance of roll-out in 2017. Having to carry out a review again would delay implementation. We cannot afford more obstacles in the way of providers who are keen to know—and need to know—how the arrangements will work out.

[Alex Cunningham]

No one wants to delay the implementation of this fantastic policy, but the review, and the consideration of the issues that were raised in the other place, could happen in parallel without inhibiting that implementation. They would inform it considerably and perhaps make it possible to get the right numbers, which we need to understand the cost and the number of placements available. Surely the Minister accepts that something could be done in parallel, and that he does not have anything to fear from that.

[Mr Gyimah]

I do not see the case for a further independent review after a review has been held. The autumn statement set the Government’s budget and spending plans for the entirety of the Parliament. We have a very generous settlement: we will be spending £2.9 billion in 2018-19, having spent £2.8 billion in the last Parliament. That is a significant increase.

Finally, Members have asked questions about the detail in the Bill. The hon. Member for North West Durham is a veteran of childcare debates in this House, and I say to her that regulations are the right place for much of the detail. The full eligibility criteria, and the details about the childcare providers that local authorities are required to fund for the current entitlement, will all sit in regulations. The previous Labour Government made the same choice. We set out our intentions in a series of policy statements, and the regulations will be subject to the highest degree of parliamentary scrutiny.