(1 year, 6 months ago)
Lords ChamberMy Lords, it is a pleasure to follow the noble Lord, Lord Russell, and add a brief footnote to the speech he made on Amendment 290, to which I have added my name. As he said, the amendment makes it explicit that the infrastructure levy can be used to make childcare accessible and affordable.
I will make four brief points. First, in standing back and looking at total expenditure on all ages of children under 18, I believe we spend too low a percentage on under-fives and too great a percentage on older age groups, in terms of outcome both for society as a whole and for the individual child. I believe that a pound’s worth of investment spent earlier yields a greater return than if spent later. This is not the time to defend that assertion, but it is relevant to the debate.
Secondly, I therefore welcome the priority the Government have recently given to childcare, with £204 million of additional funding this year increasing to £288 million by 2024-25, on top of the £4.1 billion previously announced, together with earlier announcements about family hubs.
Thirdly, in expanding free entitlement, if that additional funding is inadequate, there is a risk that, as the noble Lord just said, providers continue to remove themselves from the market or reduce the quality of care provided. If the latter happens, it would place the priority of providing employment opportunities for parents above the purpose of child development. Increasing the demand for childcare places by making it cheaper without increasing funding for staff salaries may make it harder to find a nursery space in the first place. At the moment, it is not at all clear where the extra places will come from. Sam Freedman, an author and political columnist, posted the following on Twitter:
“we haven’t been given a figure for the new hourly rate but based on the overall cost for 3+4 year olds (£288m for 2024/5) it looks way too low. We proposed adding in £2bn to make it sustainable”.
Fourthly, the current business model for much of childcare relies on cross-subsidy from the better-off parents who can afford the extra hours to make good the gap in statutory funding. I was rereading the report of the Lords Select Committee on Affordable Childcare, published in February 2015, which said this about cross-subsidy:
“There is evidence that the funding shortfall in the rates offered to”
private, voluntary or independent
“providers for delivery of the free early education entitlement is met in some settings by cross-subsidisation from some fee-paying parents. This means that parents are subsidising themselves, or other parents, in order to benefit from the Government’s flagship early education policy”.
At the moment, of course, nurseries subsidise the too-low, free, hourly rate by charging more for one and two year-olds, hence the high prices. But, if one and two year-olds get free hours, as proposed, you cannot get the cross-subsidy. As free entitlement is expanded to more of the market and more of the week, it undermines the current business model for those who are providing childcare. If we want to achieve the Government’s policy on childcare and levelling up, we need to ensure that extra resources are available. That is what this amendment does.
My Lords, I will speak to Amendment 290, in the name of the noble Lord, Lord Russell, and to which my name is attached. I pay tribute to the noble Lord’s leadership on this issue and apologise to the Committee, as I was unable to speak at Second Reading. I will just make a few additional points to those already made by the noble Lords, Lord Russell and Lord Young. As a member of the Lords Select Committee on Affordable Childcare, to which the noble Lord, Lord Young, just referred, I very much want to underline the points he made about cross- subsidisation.
This amendment, which makes it explicit that childcare services are considered a proper use of developer contributions by local authorities, is incredibly important. We need to see it written down. At the moment, there is nothing in legislation or guidance, and this would be only an option for local authorities—not something they are required to do. As the noble Lord, Lord Russell, said, it is hardly a surprise that so few local authorities are spending any of their developer contributions on childcare services. To reiterate his point, in the last five years, only 22 local authorities have spent anything on them.
(3 years ago)
Lords ChamberMy Lords, I am not sure that is the way to think about these problems. We need to recognise that, as well as the income disparity, there is the cost disparity. Admittedly, living in a great capital city comes at a price. We want to level up some of the areas that have been left behind. That does not mean we want a reduction in income in places such as London. We need to ensure that we lift all boats—that is the philosophy behind levelling up.
My Lords, does the Minister agree that financial inclusion—that is, ensuring that people have access to essential banking services and financial products that are fairly priced—is particularly important for areas that the Government are looking to level up, and that incorporating a clear financial inclusion strategy into the levelling-up agenda could make a big difference? Can the Minister say whether Treasury and DWP Ministers who lead on financial inclusion are part of the Government’s levelling-up agenda?
My Lords, financial inclusion is very important in particular areas, and it is important in addressing it to bind together different departments. That is why there is a new levelling-up task force under the leadership of Andy Haldane that brings together the Department for Levelling Up, Housing and Communities and the Cabinet Office, precisely because we need that Whitehall join-up.
(3 years ago)
Lords ChamberThe Government are providing many mechanisms to support rural areas. I point to the community energy projects, through the rural community energy fund, which is a £10 million fund to support community-run projects in England that benefit the transition to net zero. Net zero is half the story; adaptation to the consequences of climate change is equally important, and the Government are committing £2.8 billion in a six-year capital investment plan to reduce flood and coastal erosion risk.
My Lords, local authorities are critical to achieving the Government’s net-zero target, but will struggle to do so without sufficient resources. Some 95% of local authorities have said that funding is a barrier to them tackling climate change. The Climate Change Committee recommended increased resourcing for local government as a priority. Can the Minister say whether and when the Government intend to give local authorities new capital-raising and revenue-raising powers to support the transition to net zero, as recommended in the SMF report?
My Lords, I point out that the Government have committed £1.2 billion for local action on climate change. There are currently no plans to devolve additional tax-raising powers, but the Treasury will keep this under review.
(3 years, 7 months ago)
Grand CommitteeMy Lords, I pay tribute to the noble Baroness, Lady Lister, for securing this vital debate and refer to my social work interests in the register.
This has been a global pandemic, so I start my remarks at a global level. The World Bank has recently said that the current health crisis has
“put the spotlight on deep rooted systemic inequalities”
within societies, particularly for some of the most marginalised groups. Crucially, the bank has argued:
“The crisis is also an opportunity to focus on … rebuilding … more inclusive systems that allow society … to be more resilient to future shocks, whether health, climate, natural disasters, or social unrest.”
Our debate focuses on the UK. In March, the British Academy produced a series of reports addressing the long-term societal impacts of Covid-19. Its evidence report listed nine interconnected areas, which included: worsened health outcomes and growing health inequalities and the greater awareness of the importance of mental health.
In responding to this new opportunity and trying to reshape the way we do things, we must recognise that the pandemic has had a disproportionate impact on certain groups, particularly black and minority ethnic communities and disabled people. It has exposed deep inequalities in our health and care systems. In February, the Marmot 10 Years On report was published and made for sober reading. In short, it showed that life expectancy in England has stalled for the first time in more than 100 years and even reversed among the poorest people in certain regions: the more deprived the area, the shorter the life expectancy.
Professor Marmot says that the worsening of our health cannot be written off as the fault of individuals for living unhealthy lives; rather, their straitened circumstances and poor life chances are to blame. His institute’s work has established that healthy lives depend on early child development, education, employment and working conditions, adequate income and a healthy and sustainable community in which to live and work. Surely these are all things that an inclusive Covid recovery plan should prioritise.
The Government’s commitment in their 2019 election manifesto to extend healthy life expectancy by five years by 2035 and to narrow the gap between richest and poorest is to be welcomed. However, as the Lords Public Services Committee recommended in its first major report on the impact of Covid on public services, the Government should now publish their strategy to achieve that manifesto commitment and their response to the prevention White Paper. Can the Minister say when the Government plan to do that?
As we have already heard, many children have been particularly badly affected by the pandemic, and life was already difficult for many vulnerable children. In 2017, the all-party group for children, of which I am co-chair, published two reports looking at the state of children’s social care. In brief, they found that children often have to reach crisis point before social services step in and that decisions over whether to help a child—even in acute cases—are often determined too largely by budget constraints. I join others in calling for the £1.7 billion lost from the early intervention grant since 2010 to be restored.
I turn finally to mental health. Recent Centre for Mental Health modelling predicts that up to 10 million people in England will need either new or additional mental health support as a consequence of the crisis. Some 1.5 million of those will be children and young people under 18. It is abundantly clear that the pandemic is taking a huge toll on children’s mental health and that the current system—already under great strain pre-pandemic—simply will not cope with the scale of demand coming down the track. Without the right mental health support in schools, the significant investment that the Government have rightly made in academic catch-up risks being undermined. While the extra £79 million announced in March for mental health in schools is welcome, it simply will not be sufficient to keep up with urgent need. Tackling this unprecedented mental health crisis will need more ambitious action, including every school having access to counselling services. I look forward to hearing the Minister’s response on this point.
I intervene at this juncture to remind noble Lords that there is a four-minute speaking limit. I would be grateful if people could try to observe this so that everybody gets the chance to speak.