Children’s Education Recovery and Childcare Costs

Catherine McKinnell Excerpts

Tuesday 7th June 2022 Commons Chamber

[Mr Walker]

The hon. Gentleman has raised an important issue. Our reforms of the funding formula to ensure that schools are funded according to the cohorts that they serve and according to their activity are an important element in responding to it, although of course they will take time to come through. However, it is also important that we look at retention more broadly. As I have said, the Department has recognised that in its move towards a recruitment and retention strategy rather than just focusing on recruitment as it traditionally did. I hope that the funds that we are putting into schools this year—a £4 billion, or 7%, increase—will allow them to deliver good pay rises, and will help with teacher retention. Work with the School Teachers’ Review Body is ongoing on that front.

Extra time is part of our strategy, and we are increasing the number of hours in 16-to-19 education by 40 per student per year from September 2022. In our schools White Paper we set an expectation that all mainstream state-funded schools should deliver at least a 32.5-hour week, supporting our ambition for 90% of primary school children to achieve the expected standard in reading, writing and maths by 2030, and in secondary schools for the national GCSE average grade in both English language and maths to rise from 4.5 in 2019 to 5 in 2030. The parent pledge set out in the schools White Paper further supports these aims by making clear the Government’s vision that any child who falls behind in English or maths will receive the right evidence-based, targeted support to get them back on track.

I am sure the House will agree that the earliest years are the most crucial stage of child development. We know that attending early education supports children’s social and emotional development and lays the foundation for lifelong learning, as well as supporting their long-term prospects. That is why it is so important that we address the impact that covid-19 has had on the youngest children’s social and personal skills as well as on their literacy and numeracy. On top of spending £3.5 billion in each of the past three years on early education entitlements, we are investing up to £180 million of recovery support in the early years sector.

We will build a stronger, more expert workforce, enabling settings to deliver high-quality teaching and helping to address the impact of the pandemic. This includes up to £153 million in evidence-based professional development for early years practitioners—for example, supporting up to 5,000 staff and child minders to become special educational needs co-ordinators and training up to 10,000 more staff to support children in language and communication, maths, and personal, social and emotional development. That includes up to £17 million for the Nuffield early language intervention to improve the speech and language skills of children in reception classes.

Over 11,000 primary schools, representing two thirds of all primary schools, have signed up, reaching an estimated 90,000 children and up to £10 million is included for a second phase of the early years professional development programme in the current academic year, supporting early years staff in settings to work with disadvantaged children.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

The Minister reels off a lot of statistics, but the most important factor he has acknowledged is how important the early years are. He mentioned levelling up earlier, but the one issue that the Government seem consistently to fail to recognise is the impact that child poverty has on a child’s life chances and opportunities. Will the Government acknowledge that without tackling child poverty—which is on the rise, with a third of children living in poverty in my region in the north-east—any effort to invest in later stages education will be undermined, and that they need to tackle child poverty first?

[Mr Walker]

Of course the hon. Lady is right in saying that we have to grow the economy and drive up prosperity in order to support children everywhere; I think that is something we can all agree on across the House. We need to make sure that we are targeting support towards the disadvantaged, and I have already set out that we are. Of course, more broadly we all want to see a stronger economy, and education can play a key part in that.

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[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

When we look at which developed countries have the highest cost of childcare, the UK always comes close to the top of the list. We know that parents are feeling it, as we have heard today. The Petitions Committee, which I chair, has debated the issue at some length in response to calls for an independent review of childcare funding. As the hon. Member for Ruislip, Northwood and Pinner (David Simmonds) said, we should not have an auction of promises. This should not be a party political issue; it needs to be properly looked at in the round.

The comments that we received from petitioners were quite depressing, but sadly not surprising. One response to our survey said:

“My wages will just about cover our childcare costs, therefore I am basically working only to ‘hold my place’ until my baby is old enough not to need childcare i.e. once she starts school.”

Another commented:

“I do not have the option to have family or friends look after my child when I return to work and I can’t afford to not be in work, but childcare costs more than my mortgage for full time hours.”

We all know that the spiralling cost of childcare is a worry for many parents amid the cost of living crisis, but the impact on new mothers is particularly troubling. Decisions that women make in that very short period have a huge effect on their earnings for the rest of their life. That has a direct impact on the gender pay gap, or what many might call the child pay gap.

The International Labour Office has found that in the UK, the pay gap between mothers with two children and non-mothers is 25% across their lifetime. The Institute for Fiscal Studies has found that by the time a woman’s first child is 12 years old, her hourly pay rate is 33% behind a man’s. That is appalling, but we can hardly be shocked when our childcare system is not only one of the most expensive in the world, but assumes that most families do not need any help with childcare costs until their child reaches the age of three. Support is poorly targeted, and it is letting families down.

Unfortunately, there are worrying signs that some problems for new mothers are getting worse. The Times recently reported that in the past few months, the trend of women staying in work has stalled, so we are now seeing an increase in new mums dropping out of the workplace, many of them for good. Furthermore, about 29% of women who are not working say that it is because they need to look after their families, compared with about 7% of men. The figure has risen by 5% in the past year alone. It is the first sustained increase in 30 years, and it is incredibly troubling. Some of this may be due to covid and changes in lifestyle patterns, but the increase is most pronounced among women aged between 25 and 34. It feels as though the clock is ticking backwards for women.

Women may make the decision not to work for various reasons. It is their right to make that choice, and the choice should be supported. But what about those for whom it is not a choice—those who simply cannot afford the childcare, and who give up their jobs as a result? What about the women who work three jobs and barely get to see their children, because that is the only way they can put food on the table once they have paid for their childcare costs? The cost of a part-time nursery place for a child under two has risen by a staggering 59% since 2010, which is totally out of sync with the changes in general prices and average earnings.

There is so much evidence to show that the Government’s own policies are driving up childcare prices. The free hours are of course extremely welcome to those who receive them once their child turns three, but in providing funding at a level that they know is inadequate, the Government are forcing providers to cross-subsidise by making non-funded hours even more expensive. This is robbing Peter to pay Paul, and it is mothers who are losing out as a result.

We need a childcare system that not only helps to make the lives of parents and their children better, but helps to make our economy work. We cannot stand by while it becomes too expensive for mothers to work, so that women are forced back into the home for the sake of those few precious years, out of sheer economic necessity. Early years childcare and support is as essential for parents to get to work as the roads and the rail network, and it provides a great many benefits beyond that. Until we approach it as the vital infrastructure that it clearly is, we will continue, as a country, to let down women, families, and our whole economy.

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[The Parliamentary Under-Secretary of State for Education (Will Quince)]

I welcome the opportunity to respond on behalf of Her Majesty’s Government and I thank the many hon. Members who have made constructive and passionate contributions to the debate. I will try to respond to as many of the themes and issues raised as possible in the time available to me; there is much to respond to and so little time in which to do it.

As the Minister for School Standards said at the beginning of the debate, we are committed to making childcare more affordable and accessible, supporting parents and providing children with the best possible start in life. Recovery remains a priority for the Government. It is a key part of building back better, levelling up and making sure that we are ready and skilled for a future in which the next generation can prosper.

Opposition days are, by their nature, political and the Opposition are right—dare I say it—to push us to go further and faster, which is their job after all. I gently say to them, however, that there is not one Member of the House who does not want every child in this country to have a world-class education where they are given every opportunity to fulfil their potential. I have two young children and I want them and every single child in our country to have better life chances than we had, regardless of their background or where they live.

We all want more accessible, flexible and affordable childcare and early years education, with every child having the best possible start in life. We all want every single school to take a whole-school approach to mental wellbeing and to ensuring that the children and young people get the mental health support that they need when they need it.

I turn to hon. Members’ contributions, starting with early years and childcare, which have been raised the most. I join my hon. Friend the Member for Bolton North East (Mark Logan) in rightly thanking all those working in education, early years and childcare. I agree that the early years are often not recognised as much as they should be, which must change. Early years are very much educators and they improve life chances, so let me say from the Dispatch Box: “Thank you.” I cannot let the moment go without saying happy birthday to his daughter Brannagh—I thought it was Princess Elsa of Arendelle up in the Gallery, but I will “Let It Go”.

On early years, the hon. Members for Walthamstow (Stella Creasy), for Mitcham and Morden (Siobhain McDonagh), for Newcastle upon Tyne North (Catherine McKinnell) and for Bolton South East (Yasmin Qureshi) raised the issue of childcare costs. They are passionate campaigners and advocates for change in this area, in which we need change. They are right to point out that there were challenges pre-pandemic that were exacerbated by the pandemic, and that we have to fix our childcare sector and market. They are right to focus on under-twos where the cost is often highest and on school holiday provision, which are certainly priorities for me.

I am certainly aware of the impact on women in particular, because we know that childcare costs fall disproportionately on women, which comes with family planning decisions; disproportionate costs and salary disparities; and women deciding not to work. That is an issue for business, because we are losing a huge talent pool across our country, not to mention the impact on our economy.

The hon. Member for Walthamstow was also right to mention paternity leave. I will certainly look into the stigma issue that she raised and I will raise flexible working with colleagues in the Department for Business, Energy and Industrial Strategy. I do not recognise her figures in relation to nursery and early years funding, which I will come on to in a moment. Let us not forget that, for under-twos and for three and four-year-olds, there is tax-free childcare and up to 85% of the cost is available for those on universal credit.

The hon. Lady was right to pay tribute to the campaigning group Pregnant Then Screwed. I have met with its representatives, I have heard what they have to say and I look forward to continuing to work with them. I cannot say that I agree with them on every single issue, but they raise some good points and there is no question but that change is required in this area.

The hon. Member for Mitcham and Morden raised academies, and I agree that academies are excellent. She also said that work is the best route out of poverty, and I totally agree. I am sure that she welcomes the reality that far fewer children—in fact, hundreds of thousands fewer—are growing up in workless households. She was also right to focus on childcare. I understand that she is working cross-party to look closely at childcare costs more generally. I look forward to that committee’s recommendations.

The cost of breakfast and after-school clubs was raised, which is an important factor. The hon. Lady also raised Sure Start, but I have to say that that was not early years education. It did not often provide childcare, and when it did, it was private sector, but I may come on to Sure Start later.

[Catherine McKinnell]

May I make a suggestion to the Minister? There is a significant lack of uptake of so-called tax-free childcare. I say “so-called” tax-free childcare because it is not tax-free; it meets 20% of the cost up to a certain threshold. It could be that, in the desire to create the impression of cutting taxes, the Government have failed to explain to parents what the system actually is, and it may be that, in naming it for political purposes, it has lost its practical application. Perhaps the Government should look at giving a more honest label to the scheme.

[Will Quince]

I may not agree on that particular point, but where I do agree with the hon. Lady is that the take-up of tax-free childcare is far too low. I am looking very closely at that and at what more we can do as a Government to promote it. I would certainly encourage all Members from across the House to promote our childcare offer more generally, of which tax-free childcare is only one part.

More broadly on the point about childcare, I will say this: I have two young children, and I get it. They have both been through nurseries and childminders, and I understand the costs. I know that many parents up and down our country are paying as much, if not more, than their rent or their mortgage on childcare costs. We are very much committed to ensuring that all families get the support they need when they need it.

We are already supporting families and investing to support the cost of childcare. We are offering free childcare to every three and four-year-old—that is the 15 and then the 30-hour offer. We are providing free childcare to disadvantaged two-year-olds—that is the 15-hour offer. We are cutting the cost of childcare for working parents through our tax-free childcare offer, which I have just mentioned to the hon. Lady, and of course paying up to 85% of the childcare costs for those on universal credit, supporting the families who need it most. In total, that comes at a cost of £5.1 billion.