Childcare Entitlements
Debate between Claire Hanna and David Johnston(7 months, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
David Johnston
My right hon. Friend is absolutely right. One of the things that might happen with this expansion is that parents will for the first time have childcare for their two-year-olds. The other thing is that, because they can claim 15 hours, they might increase the hours they were already paying for, to relieve the pressure on their finances. So she is absolutely right about the labour market impact. The Office for Budget Responsibility said that it expected 60,000 people to enter the workforce and 1.5 million to increase their hours as a result of being able to access this childcare, which will be a huge benefit to the economy.
Claire Hanna (Belfast South) (SDLP)
Childcare in Northern Ireland is in a critical condition, and we are not even receiving these new changes, flawed as they may be. On Saturday, I joined thousands of parents on a march in Belfast demanding immediate intervention, because £10,000 a child per year is far from unusual. The Northern Ireland Executive promised that that would be a day one priority, but they have not delivered more than warm words. One interim solution could be raising the £2,000 tax-free limit—even just in line with inflationary pressures, as applies to other benefits—certainly for Northern Ireland parents who miss out on what the Minister has just outlined. Will he commit to exploring that with the Treasury in order to, in his words, “empower” parents?
David Johnston
The precise parameters for that are set by the Treasury, but we would like more people to claim that tax-free childcare, because many people could claim it but do not do so at that level—and, of course, it is doubled for children with SEND. People can have that with the existing entitlements in England, which can further boost their finances. We are keen to encourage people to do that.