Cost of Child Care

Debate between Catherine McKinnell and Elizabeth Truss

Wednesday 20th November 2013 Westminster Hall

[Catherine McKinnell]

The hon. Gentleman makes a passionate case and is right; it makes sense for equality, women and the individuals involved, but also for the economy. The shadow Minister, my hon. Friend the Member for Manchester Central (Lucy Powell), is keen to stress the fact that the cost of child care is not a soft issue, but a key issue for the economy. It affects whether we get economic productivity or waste the resources of women who would choose to work, but are prevented from doing so or do not bring home enough money at the end of the month. I know many women working all the hours they can, whose earnings are taken up in child care costs to such an extent that they ask every week, or sometimes every day, “Is this actually worth it?” The cost of juggling caring responsibilities with work is a challenge in itself, even without the challenge of bringing home very little pay. Often there is a short-term crisis for a family for the sake of a long-term economic benefit for the individual, the family and the children. It is a key area and the Government should take it seriously.

I am concerned that many more Sure Start closures are looming than the 579 that have already happened. The Government dispute those figures, but their database of children’s centres shows that there are 3,053, while the official Department for Education figures in April 2010 showed that there were 3,632. Will the Minister clarify when she winds up—

[The Parliamentary Under-Secretary of State for Education (Elizabeth Truss)]

I am happy to do so now.

[Catherine McKinnell]

I have a series of questions, so perhaps the Minister can answer them all.

Where have the missing 579 centres gone? There is an obligation on local authorities to keep the figures updated. According to the Government’s figures, in black and white, those centres have gone, and the Government’s denial that they ever existed is causing confusion. What assessment has the Minister made of the anticipated number of closures over the next two years? In Oxfordshire, for example, 37 may be closed, and in my local authority area the closure of a large number is being considered and all 20 are under review. Presumably such things are happening elsewhere in the country, and I wonder whether the Government have a handle on it.

[Catherine McKinnell]

Perhaps the Minister can respond not only to my questions but to the issue outlined by my right hon. Friend.

[Elizabeth Truss]

I shall make the point about numbers again in my closing remarks, as I intended, but I am puzzled by Opposition comments because currently Sure Start provides 1% of child care places and schools provide 30%. Why have the Opposition not talked about places for under-fives in schools but about Sure Start centres, which provide far fewer places? It is a strange way to approach a debate about child care.

[Mr Jim Hood (in the Chair)]

Order. Before the hon. Lady responds, I remind right hon. and hon. Members that I shall call the Front-Benchers at 3.40 pm at the latest, to give them 10 minutes each. I have one speaker left on my list who may want some time.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Education (Elizabeth Truss)]

I congratulate the hon. Member for Houghton and Sunderland South (Bridget Phillipson) on securing today’s debate. I associate myself very much with the comments made by all parents here today; I am the proud mother of two daughters. We need more parents representing people in the House. I am a great supporter of the changes that we have made to parliamentary hours, but we could do more to make the House of Commons a parent-friendly place. It is important to have representatives who are also mothers or fathers.

I am afraid that I cannot agree, however, with the hon. Lady’s analysis of the Government’s policies or indeed of the previous Government’s record. As my hon. Friend the Member for Norwich North (Chloe Smith) pointed out, that Government left the biggest budget deficit of any major economy, and as a result we were borrowing £1 for every £4 that we spent. In those circumstances, the support that the Government have given to parents and families is excellent. We have increased total spending on child care and early-years education: it was almost £5 billion but will be over £6 billion. We have increased the number of hours of free early-years education for three and four-year-olds from 12.5 hours to 15 hours a week, which is worth £400 per child for parents. We have extended support to two-year-olds, and tax-free child care, available from 2015, will be worth up to £1,200 per child. That provision is flexible between the ages of nought and five so parents can spend the allowance in the way that they see fit. We are providing support to families in tough times.

I want to comment briefly on the claims made about child care places. There is a genuine issue here, and we need to be clear about the figures. There are two different registers upon which child care places are based under Ofsted. The most accurate figures can be found in the Department for Education early-years providers survey from 2011—that is the most recent of those surveys, which are biennial. I am concerned that the Opposition’s figures do not include the 800,000 places in school nurseries. In places such as London, about 50% of all places are based in schools. As Baroness Morgan, an Opposition peer, has pointed out, school provision gives a strong basis for future progression and avoids some of the issues with transition that Opposition Members have raised. I would like to point out that our survey shows that over 200,000 places are available across the country. It is wrong to say that there is a shortage of places. Of course, I agree that we need to do more work on supply and quality.

[Catherine McKinnell]

Will the Minister give way?

[Elizabeth Truss]

I am sorry, but I will not be able to take interventions at the moment because I want to try to answer all the many questions hon. Members have raised.

Labour claims that costs have risen by 30% since the Government took office. The study that was mentioned also suggested that costs had risen by 50% under the previous Labour Government. Child care costs have been rising year on year, but other recent studies suggest that those costs are now stabilising and have been flat in real terms for the past two years. Across the political spectrum, we need to analyse why we put the same amount of money into our child care system as countries such as France and Germany but parents in those countries pay a lot less—they pay about half the costs that parents here pay. It is not just about the money that the Government are putting in; it is about the efficiency of provision, competition in the child care market and how that market works. I have spent a lot of time thinking about that as a Minister, and some of my plans are aimed at addressing those specific issues.

Child Care

Debate between Catherine McKinnell and Elizabeth Truss

Tuesday 19th November 2013 Commons Chamber

[Catherine McKinnell]

The Minister provided no clarity on the figures. The hon. Member for Suffolk Coastal said that she was unable to clarify the figures, but that she had been reassured by the Minister. I am less so. I would be pleased if the Minister provided some clarity now.

[Elizabeth Truss]

The figure of 500 to which the Opposition have been referring is the number of centres that were independent and that are now part of a network. They are still open to the public and providing services, but management efficiencies have been achieved. There have been 45 outright closures. I hope that I have made myself clear.

[Catherine McKinnell]

It is clear that the Government are using figures to manipulate the reality that is being reported by constituents up and down the country.

Let me get back to the situation in Newcastle. Last year, my local authority, in the light of unprecedented funding challenges, consulted on a three-year budget for the period 2013-16. When it began the process, it believed that, as a result of funding reductions from the Government and rising cost pressures from inflation, high energy prices and the costs of providing services to an ever-ageing population, it faced a funding shortfall of £90 million over three years. That figure rose during the consultation process to £100 million. Following further cuts announced in the autumn statement and the local government finance settlement, it is now facing cuts of £108 million. It has already announced the closure of Sure Start centres in my constituency—all of them—and because of the additional funding requirement and shortfall, it has now put all 20 Sure Start centres within the Newcastle city council area under review, so we do not know what their future will be.

A-level Reform

Debate between Catherine McKinnell and Elizabeth Truss

Wednesday 23rd January 2013 Commons Chamber

[Elizabeth Truss]

I entirely agree. Our proposals have already been strongly supported by businesses as well as universities. The Institute of Directors has been very supportive, and, indeed, expressed its support this morning.

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

Life is not just about being able to sit exams; it is also about being able to demonstrate the ability to perform over a sustained period, and that is what employers want. Modular courses help young people to demonstrate such skills. Will the Minister tell us to what extent coursework and modular work feature in the Department’s plans? Will she also tell us on what evidence the proposed changes are based? She has not yet told us that, although she has explained her views on the previous system.

[Elizabeth Truss]

The hon. Lady says that she does not think constant exams should be part of life, but under Labour, constant exams were certainly part of students’ lives. Taking exams is all that they were doing between the ages of 16 and 18.