Childcare Bill [HL] Debate

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Department: Department for Education

Childcare Bill [HL]

Baroness Jones of Whitchurch Excerpts
Wednesday 1st July 2015

(9 years, 5 months ago)

Lords Chamber
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Moved by
1: Before Clause 1, insert the following new Clause—
“Consultation and reviews
In order to ensure that the duty in section 1(1) can be implemented effectively, the Secretary of State shall, before the end of 2017— (a) arrange for the following to be conducted and completed—(i) a review of the cost of providing childcare;(ii) an impact assessment for the provisions of section 1;(iii) a consultation with parents and childcare providers;(iv) a review of the 2016 pilot scheme;(v) the taskforce on childcare led by the Minister for Employment in the Department for Work and Pensions;(b) arrange for a report on each of the pieces of work under paragraph (a) to be laid before Parliament; and(c) publish and make available for consultation a draft of any regulations which the Secretary of State intends to make under section 1.”
Baroness Jones of Whitchurch Portrait Baroness Jones of Whitchurch (Lab)
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My Lords, these are crucial amendments that seek to take forward our concerns, which have just been set out by my noble friend Lady Smith. As we have just discussed, they echo the concerns identified around the House at Second Reading, which have been endorsed by the damning report of the Delegated Powers and Regulatory Reform Committee, and further endorsed today by the Lords Constitution Committee.

Noble Lords will recall that at Second Reading there was broad consensus that we supported the principles behind the Bill but were concerned about whether it was workable and affordable. More fundamentally, there was a concern that we were being prevented from carrying out our essential scrutiny role effectively. I could cite a number of quotations from noble Lords around the House to endorse that argument, but I know that we all recall the frustration that we felt at the time. The Minister was not able to provide any reassurance because, as he said, the plan was to carry out the reviews and then publish the regulations in light of their conclusions—in other words, a long time after the Bill had left this House. We have since received a letter and a policy statement from the Minister, as well as his helpful statement today, but I would still like further clarification on what we will have before us on Report. This is what our amendments are attempting to tease out.

I gathered from the policy statement that it was proposed to consult parents, providers and employers, beginning in the summer, as well as to have a public consultation that would not take place until 2016, and that outcomes from both would feed into the draft regulations, which would be published after that. I am just checking the timescale that the noble Lord is now proposing, in light of what I read in the policy statement. Then, in September 2016, the pilot schemes will take place, so there will also be conclusions from these. I gathered from the noble Lord today that on Report we would have details of what the pilot schemes would do, but not their conclusions.

The policy statement also said, and the noble Lord echoed this today, that in the autumn the Government will produce their response to the affordable childcare report. As my noble friend Lady Massey has said, it would be helpful to have the Government’s response to that before Report. I am not sure that the Minister clarified that that would be the case. He said that there would be discussions with the noble Lord, Lord Sutherland, and others, but a thought-through response to that report would be very helpful.

We then have the government task force on childcare, which I think we are also calling the funding review, to which my noble friend Lady Smith referred. As she said, the whole Bill will stand or fall on whether we get the funding right. Is the noble Lord saying that all the work on that review will be completed by September, in time for Report? It seems a very big piece of work to get it right—not only to consult all the providers but to look at the financial implications and at where the money will be drawn from to pay for any additional places. I am impressed if that is the case, but it would be helpful if the Minister could clarify that.

We also have the Minister for Employment chairing a childcare implementation task force—which I think is different, but the noble Lord will be able to clarify this—to look at the options for extending entitlement. However, as we discussed last night, it seems from the 10 Downing Street website that that task force’s report is not to be made public. Perhaps the noble Lord could clarify whether we will ever see it.

There is then a full economic impact assessment, which we will not see until 2016. Then, as we talked about, there are the final regulations and guidance. I am just trying to tease out in a little more detail which of these we will see on Report, because I would have thought—and this is what the Delegated Powers Committee report said—that most of them would be very helpful before we get into the detail of the Bill.

In essence, this is a topsy-turvy Bill. We are doing everything in the wrong order. As the noble Baroness, Lady Fookes, said, it would have been sensible to have reviews and pilot schemes and publish a more detailed Bill after that. Amendment 1, is, in effect, a sunrise clause: it puts a logical process of consultation and review into the Bill and enables both Houses to play a proper role in scrutiny before the Bill is enacted.

At Second Reading, the Minister argued that it was important for the Bill to be published early so that parents could plan for 2017. Crucially, our amendment would not alter that start date, but would give an opportunity to address the many concerns that parents and providers are raising about who will be entitled to the free childcare and how it will be funded, so that, by 2017, parents will have a much clearer picture of what is on offer to them. I hope that noble Lords will see the sense of the amendment. It is very much in keeping with the recommendations of the Delegated Powers Committee and it would underpin our right to scrutinise the intent and detail of the Bill more rigorously.

Amendment 27 is quite straightforward and essential, and again builds on the recommendations of the Delegated Powers Committee. As it stands, Clause 2(2)(d) is a Henry VIII power that gives widespread powers to the Secretary of State to amend, repeal or revoke any regulations made under the Bill. By removing subsections (4) and (5) and replacing them with our amendment, all the regulations in the Bill would need to come to each House for approval, so there would need to be an affirmative, rather than a negative, process. We believe that this safeguard is necessary because of the lack of clarity in many of the regulations proposed.

In their policy statement, the Government sought to make a virtue of the lack of detail in the regulations proposed, arguing that the reviews and the consultation should take place first. We of course agree that consultation, evidence-collecting and analysis should take place before the legislation is finalised, but we are not prepared to hand over so much detail of the legislation, both primary and secondary, to the Secretary of State when so much is yet to be decided. We believe that that is bad policy and bad scrutiny.

The Delegated Powers Committee’s report was clear on this. It said:

“In our view, the Government’s stated approach to delegation is flawed. While the Bill may contain a legislative framework, it contains virtually nothing of substance beyond the vague ‘mission statement’ in clause 1(1)”.

It went on to recommend that the affirmative process,

“should apply on the exercise of all powers conferred by clause 1”.

We agree with this recommendation and our amendment would give effect to it. I am not sure whether the Minister’s statement today confirmed that. Again, I would be grateful if he could clarify that. Amendments 40, 41 and 42 are then consequential on Amendment 21.

Given the lack of detail, on which all noble Lords commented at Second Reading and again this afternoon, I hope that these amendments will provide some reassurance and a vehicle for taking the Bill forward. I hope they will receive widespread support. I beg to move.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, I am very new to this process of scrutinising legislation. All the detailed procedures and processes that more experienced Members of this House know about, and the intricacies of how a decision is made, are a bit new to me. What I do know, though, is this: there is in front of us, for a very important change to legislation, a Bill that comes to just over three pages. The amendments that have been tabled across your Lordships’ House come to 13 pages, which is a very telling ratio.

What we have in the initial case is something that is extremely lacking in detail and substance, when we need detail and substance. The Bill is not about a Conservative manifesto commitment; I am concerned not about the Government’s manifesto commitments but about the impact of the final legislation on children and their families. So much is lacking in the Bill that we have no idea what the impact will be and whether it will be affordable or accessible for all young people. Which families will be able to take advantage of the 15 hours of additional free childcare that is on offer? We know none of these things. We do not know whether there is sufficient capacity in the sector to provide these additional 15 free hours.

In my other capacity, as a local councillor, representing families and their children, I would have to say, looking at this, that I do not know what is on offer, and whether I would be able to access and use it. We have before us a lost opportunity of immense proportions. Everybody across this Committee can agree that an additional 15 hours’ free childcare is very important to families and to children of preschool age, but we cannot get it right in the first instance. It is shameful that we are at this stage.

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I hope that I have reassured the noble Baroness, Lady Jones, and the noble Lord, Lord Touhig, that the Government will complete a number of steps to ensure that parents, providers, employers and Parliament are engaged in the development of the extended free childcare entitlement. I also hope that I have provided the noble Earl, Lord Listowel, and the noble Lord, Lord Sutherland, with sufficient reassurance that although the Government recognise the value of evaluating significant programmes such as this one, it is not necessary to place it in primary legislation. I therefore urge the noble Lords not to press their amendments.
Baroness Jones of Whitchurch Portrait Baroness Jones of Whitchurch
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My Lords, I welcome the proposals of the noble Lord, Lord Sutherland, and the noble Earl, Lord Listowel. I was also very interested to hear what the Minister said about the research that is taking place and I will look at that in some detail in Hansard in due course. I will also scrutinise very carefully the wording of the information that the Minister has now provided about the timeline and I welcome his suggestion of a road map. I think that would help all noble Lords to understand what we can expect on Report.

The critical issue here is not an October deadline. I am grateful that the noble Lord has offered that but it is more important to get the information right than to tie ourselves down to an artificial date. Whether it is October or November does not matter. What matters is that we are furnished with all the information that the Minister is now saying that we will get. I would hate to think that some of this work is being rushed to meet an artificial deadline, so I will just put that marker down, but if it can be ready by October, that is fine.

A number of noble Lords have said that we have had the procedural discussion and the procedural row and I agree with that. We are keen to move on with the detail of the Bill now so let us put the process behind us. I look forward to the information the noble Lord has given and will give in the follow-up letter and I hope that we can go forward on that basis.

I have one last caveat. The Minister talked about the draft regulations. Again, I need to check exactly what he said, but our Amendment 27 says that the regulations should be affirmative, which is an important principle. It is what the Delegated Powers Committee recommended and I hope the noble Lord will take that on board so that we can have a proper opportunity to debate the regulations, not only in draft form but in their final form, before they are put on the statute book. With that caveat, I beg leave to withdraw the amendment.

Earl of Listowel Portrait The Earl of Listowel
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My Lords, before the amendment is withdrawn—I apologise for being slow off the mark—may I make a brief comment? I thank the Minister for his careful response, which I appreciated, and for your Lordships’ comments on my amendment.

On my noble friend’s amendment, I take it that the longitudinal study referred to by the Minister will finish fairly early in the children’s lives. It seems that our discussion is about longitudinal studies that are focused mainly on the educational outcomes and maybe a little on child development. The EPPE study terminated at either 16 or 18, but here it may be slightly earlier.

My concern is that we need some means to think about the long-term impact of early years care. We are becoming more and more aware of the importance of a secure attachment in the early years. I visited the Anna Freud Centre over quite a period and spoke to professionals at Coram. To give an example of the importance of a secure early attachment, they have developed a means of assessing potential adopters. With that tool, they can learn about the adopters’ own experience of their early childhoods, and from that discussion they can assess how secure the child that would be placed with them is likely to be. To simplify grossly, if the adopters have had a secure attachment in their own lives, it is likely that they will be able to give a secure attachment to an infant placed with them, even if that child is quite challenging, because they had a very good experience early in life. This is a very important thing to keep in mind.

I am sorry to bore your Lordships with this—I mention it so often—but in this country about 22% of boys and girls are growing up without a father in the home and, according to the OECD, we will overtake the United States in a few years. It is of course deeply distressing for children when their parents separate, and hugely economically costly for us as a nation when families break down.

I am sure many of us would feel reassured if there was research that looked at the experience of early years provision and the early years experience of childhood and connected that with the success of family relationships down the road. Maybe the Minister will think about that, and then we can discuss it at another point. I thank noble Lords.

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Moved by
3: Clause 1, page 1, line 3, leave out “The Secretary of State” and insert “Every English local authority”
Baroness Jones of Whitchurch Portrait Baroness Jones of Whitchurch
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My Lords, at Second Reading several questions were asked of the Minister as to why it was necessary to have a system of dual responsibility for delivering the free childcare allocations, with the proposed duties seemingly being shared between the Secretary of State and local authorities. However, I do not believe that we received a satisfactory answer at the time; I have scoured the policy statement and there does not seem to be an explanation in that document either.

Under the terms of the Childcare Act 2006, the duty for delivering the existing 15 free hours of childcare currently resides with local authorities. It seems that overall, despite the pressures they are operating under, they have done a good job. In the previous debate, the Minister cited a delivery figure of 95% take-up of free entitlement, which, given the geographical and financial variations that they are operating under, seems pretty impressive.

As I understand the proposals, it is not envisaged that this duty will be repealed. Indeed, in response to a question at Second Reading from the noble Baroness, Lady Eaton, about the local authorities’ role, the Minister said that,

“as my noble friend rightly says, local authorities play a very important role. We fully intend and need them to continue to do so”.—[Official Report, 16/6/15; col. 1130.]

So we are now faced with a potentially farcical situation in which local authorities will be responsible for delivering the first 15 hours and the Secretary of State will be responsible for the next 15 hours, even though the local provider is likely to be one and the same organisation. This arrangement will simply blur the lines of responsibility. It will confuse parents and providers alike and will provoke a blame game when things go wrong. I do not think that anyone understands the logic of this; I hope that the noble Lord will shed some light on the matter.

In the mean time, our amendment provides a simplified, streamlined structure in which the duties of local authorities are extended to cover the full 30-hour package. I hope that all noble Lords will see the sense in our proposal. I beg to move.

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Lord True Portrait Lord True
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My Lords, as a local authority leader I am obviously grateful for the way that my noble friend responded. I understand precisely what he said about flexibility. At the moment, local authorities have to deliver the universal entitlement, the conditional entitlement and the targeted benefit for two year-olds. This will be another, different category of support. He is quite right to say that that needs to be thought through. I am not going to alarm the House as I once alarmed Whitehall by pronouncing the dread word “voucher”, but there are all sorts of ways that these things can be looked at.

I am worried that as a House our gift to Lady Nash is detaining my noble friend Lord Nash here at great length, but the only thing I would say, given this opportunity, is that local authorities will not find this easy. I agree with the permissive approach that my noble friend has endorsed and I am grateful for that, but just to inform the House, I asked my officials what it would potentially cost to extend provision to 30 hours across our existing maintained sector. Because of the constraints on building and taking a reasonable view that the regulations will not be less demanding than existing ones, capital investment would be more than £6 million for our maintained schools. That was in a local authority with a low proportion of maintained to private and voluntary provision.

While I understand the aspiration of the noble Baroness to enable local authorities to come forward, I think the Government and the House need to understand that the resource constraints on local authorities in filling such a gap would be considerable.

Baroness Jones of Whitchurch Portrait Baroness Jones of Whitchurch
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I thank noble Lords —we have had a good short debate. I understand the point of the noble Lord, Lord True, that, although we can recognise the success of local authorities’ involvement until now, this would be a new challenge for them. Of course, if you follow the logic of that through—I think the noble Lord was making a bid for some extra money when he talked about the capital costs—there is no guarantee that the Secretary of State or local authorities will have the extra money to fund some of that capital build that we all know would be necessary.

I have listened very carefully to what the Minister said, but I have to say that he was not very persuasive on this matter. He said that they are consulting. I understand, and we agree with the need to consult, but if that is the case, how come this is very specifically in the Bill when everything else could or could not be part of regulations?

My key concern is that the Minister did not address the complexity of running a parallel system. The noble Lord did not respond to the question of whether local authorities would still be responsible for the first 15 hours. As I said in my opening remarks, it appeared that they would be responsible for the first 15 hours, so making somebody else responsible for the next 15 hours does not seem to make sense at any level.

I shall withdraw the amendment, but I think this is something that needs a great deal more thinking through before we get to Report. I beg leave to withdraw the amendment.

Amendment 3 withdrawn.
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I am taking far too long but I am coming to the last of my subsections. It is on care leavers, who have often been abused as children. Many care leavers have a positive experience of care and move on to do very well in their lives, but may have had abuse before entering care. Many of them have unfortunately experienced many discontinuities in care. The report from the Centre for Social Justice of about two months ago highlighted that many left care feeling isolated and went on to have unhappy lives. I have already mentioned that many young women in care, and leaving care, will become pregnant and choose to have their babies. That is problematic when so many of them go on to have their children removed, so it would be really helpful to offer this provision to care leavers, in order to give those children and mothers the extra support they might need. With that, I beg to move.
Baroness Jones of Whitchurch Portrait Baroness Jones of Whitchurch
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My Lords, I want to propose Amendment 11 on the definition of a working parent, which adds our suggested categories to the list proposed by other noble Lords. In his response to the Second Reading debate, the Minister said that “working”—and by this we assumed that he meant “working parent”—

“will be defined as the equivalent of eight hours per week, will include self-employed work, and that lone parents will be able to access the entitlement”.

He added that,

“more detailed criteria will be subject to consultation in due course”.—[Official Report, 16/6/15; col. 1128.]

As we have discussed, we have not yet seen the more detailed criteria that will be the subject of that consultation, so on this basis we are helping the noble Lord along in this process by making some more helpful suggestions.

We discussed the report of the Delegated Powers Committee earlier. I thought it made a telling comment, because the Government had stated that their intention in the Bill was to send,

“a clear message to parents and providers about the Government’s commitment”.—[Official Report, 16/6/15; col. 1130.]

In its response, the committee said that it did not feel that the purpose of an Act was to send a message. I do not think we are sending much of a message to parents anyway if they do not know what the qualification criteria will be for this free childcare. Our objective behind Amendment 11, which by its very nature is a probing amendment, is to make the eligibility as simple but also as widespread as possible. Through this amendment, we want childcare to be available, free of charge, for qualifying children for a period equivalent to 30 hours in each of 38 weeks in any year for parents who: are not in work but are receiving job training; are,

“the main carer for a family member”;

or are on zero-hours contracts. More than that, we want by this amendment to ensure that “working parents” includes parents who have had their contracts,

“unexpectedly ended through no fault of their own”.

This is a point well made by the Child Poverty Action Group, which argues that generous rules should be established for parents who place their children in childcare when in work but subsequently lose their jobs through no fault of their own.

The Government have so far reached a definition of working parents without conducting any consultation on or assessment of how many children would miss out on the Bill’s provisions. At Second Reading, the Minister stated that a working parent is a parent who works a minimum of eight hours per week. Then in the policy statement issued later, he added an important detail refining the definition of a working parent as one who works a minimum of eight hours per week earning the national minimum wage. That leaves even more questions to be answered. For example, what happens in the case of parents earning below the national minimum wage? Although that is illegal, as we know, employers in disadvantaged areas often practise this. The Government have been given plenty of evidence of this illegal practice for some years now and have done very little about it. If the aim of this policy is to get parents back into work, surely it should be extended to parents on jobseeker’s allowance who are receiving training to get back into work. Alternatively, parents may be engaging in regular voluntary work as a means to build experience and their CV while seeking paid employment. Has the Minister any thoughts on how these categories of parents can be supported with childcare?

Parents on zero-hours contracts do not have a set number of hours to work a week. There are some women and some men whose shifts are cancelled at short notice—that day, and there is no work and no pay. These parents would not meet the eight hours per week criteria. Will they be penalised by this measure? Would they become criminalised if they had already filled in a form expecting to work eight hours per week but, due to circumstances beyond their control, were unable to do so? We also have a growing number of carers, with more and more people giving up their jobs or cutting back on hours to care for a family member. Have the Government accounted for the care sector in the delivery of the additional hours of free childcare?

These questions and many more are being left unanswered, so I hope that the Minister can confirm that he is taking on board the many examples we are all giving this evening, and come back with some further examples which embrace many of these wider definitions that we have been spelling out.

Baroness Massey of Darwen Portrait Baroness Massey of Darwen
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My Lords, I shall speak briefly to Amendment 25. I support the amendments in this group, which look at what constitutes a working parent. Here, I would maintain that grandparents can fulfil that definition of a working parent if they are looking after a child or children, and they should get the same childcare opportunities as working parents. I will explain why in a moment. Grandparents are bringing up children because the parents of the child may be dead, in prison or addicted to alcohol or drugs. For grandparents, the welfare of the child is so paramount that many put their own lives on hold. They need and deserve support.

The issue of grandparent, or general kinship, care has been discussed in relation to many Bills over the past 10 years at least. I became aware of the issues facing kinship carers, particularly grandparents, when I chaired the National Treatment Agency for Substance Misuse. I met many grandparents who were suffering hardship. It is estimated that 300,000 children are being raised by relatives and friends—and I mean raised full-time. They are doing a job: they are looking after and bringing up someone else’s child or children. An estimated 60,000 kinship carers have dropped out of the labour market to bring up children. Many have decreased their working hours or their income. One reason is the high cost of childcare. Other kinship carers, usually grandparents, have retired from work. They and their grandchildren would benefit from extra free childcare. I know what they are already entitled to, but if they are not working the new provisions in the Bill will not apply. Many kinship carers are under severe strain and could be helped, as could the children they are bringing up, by more hours of childcare.

I met a grandparent a couple of years ago who used to work but gave up when her daughter died of a drug overdose. She took over responsibility for three children, aged between one and four, left with her one midnight. She was exhausted and needed more space for herself, and the children needed more stimulation than she could give. She was not helped by the bureaucracy of her local authority, from which she had little help or support. In a recent survey, 95% of kinship carers said that they had experienced at least one unmet need for support. Kinship carers have few rights, few specific services and a complex and confusing system to negotiate. The woman I just spoke about said, “I ought to be reading to my grandson but I have to spend my time filling in forms”. According to a survey by Family Lives, most feel that parenting is more challenging than it was a generation ago.

I am talking about committed carers, devoted to their grandchildren or relatives, who have taken over in a family crisis. They save the taxpayer about £750 million a year. Surely, these carers should be given support. Being able to access free extra childcare would make a huge difference to their lives and the lives of the children in their care.

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Baroness Jones of Whitchurch Portrait Baroness Jones of Whitchurch
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Can I ask a very simple question? The Minister did not specifically refer to the very telling comments from the noble Lord, Lord True, that, if you have too complicated a system with all the bureaucratic checking that needs to take place, it is a burden on the public bodies that have to do it—but also there is a cost involved. Is the funding review or one of the other reviews that is taking place going to look at whether having a universal system would not be a whole lot simpler than some of the tiers that we are now trying to put into place? I am not expecting an answer now, but it would be useful to know at least that these factors are being considered again.

Baroness Massey of Darwen Portrait Baroness Massey of Darwen
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I apologise, because I know that everyone wants to get to supper, but I have a clarification point. In the Childcare Act 2006, which is quoted in the Bill, it says that,

‘“parent’ means a parent of a young child, and includes any individual who … has parental responsibility for a young child, or … has care of a young child”.

Did I understand the Minister to say that grandparents would still have to be working grandparents or that they would qualify because they would have parental responsibility or care for a child? Many of them are not working because they are too old or they have retired. Could he clarify that for me?