Free Childcare

Debate between Bambos Charalambous and Andrew Rosindell

Thursday 12th October 2017 Westminster Hall

[Bambos Charalambous (Enfield, Southgate) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Rosindell. I congratulate my hon. Friend the Member for High Peak (Ruth George) on securing this important debate. The issue of properly funded, decent childcare has a huge impact on families in my constituency and across the country. It would be good to be able to welcome the Government’s actions on that and their commitment to 30 hours’ free childcare, but I see, from talking to both parents and childcare providers in my constituency, that there are clearly serious problems with the proposals and how they are being implemented.

First, the funding is simply inadequate. The shortfall in the Government’s commitment is detrimental to childcare providers. Last week, I spoke to the manager of a successful and popular nursery in Enfield Southgate. She told me that the Government’s plans make her fearful for her business. The inadequate money from the Government will put a terrible strain on the way in which her nursery is run. She told me that parents who used to pay for her nursery privately are now accessing the 30 hours’ childcare, but the shortfall in money from the Government to fund that will put wages and staffing costs under considerable strain. She also told me that if she were to decide not to offer the 30 hours to parents, she would lose out to other companies that will be offering it.

That hard-working nursery manager feels caught in a double bind: does she offer the 30 hours’ free childcare and risk her business making a loss, or does she avoid offering it and go under because others, who doubtless feel similarly trapped, will be offering it? We know from the excellent research done by my hon. Friend the Member for Batley and Spen (Tracy Brabin) that the fears of that nursery manager are not the exception; they are now the rule. Research also shows that three quarters of childcare providers expect the Government’s policy to have a negative impact on their business; fewer than 7% believe that it will be positive.

The Pre-school Learning Alliance estimates that there is a 20% shortfall between the amount the Government are giving local authorities to fund the scheme and the actual cost to nurseries.

Worse still, the Government are proposing that funding levels will stay the same until the end of this Parliament, even though the cost of wages, rents, pensions and much more are likely to rise during that time. Why should nursery managers and childcare providers such as the one I referred to in Enfield Southgate shoulder the financial risk caused by the Government’s ill-considered plans? The proposal of free childcare is far from free if hard-working childcare providers are carrying the cost, to the extent of even being put out of business. That is not to mention the anxiety and disruption caused to parents and children when a trusted childcare provider goes out of business, sometimes at short notice. If the 30-hour offer is to be truly free for both parents and providers, it must be funded properly now and in the future.

The other serious flaw in this pledge is that it will not help those who need it the most. I know from talking to my constituents that many parents welcome the prospect of 30 hours’ free childcare, especially those who are struggling in low-paid, insecure work. However, those who need help could easily slip through the net with this scheme, not least because of the many technical problems that parents are experiencing. After having huge technical problems accessing the scheme, one constituent contacted me last week to say:

“This is the government’s flagship childcare scheme and it’s an utter shambles with no prospect in sight of a resolution.”

Even more disturbing is the fact that to be eligible for the scheme, a parent must earn more—

[Andrew Rosindell (in the Chair)]

Order. There is a four-minute time limit. I call Liz Twist.