Oral Answers to Questions

Dan Carden Excerpts

Monday 14th May 2018 Commons Chamber

[Afzal Khan (Manchester, Gorton) (Lab)]

14. What assessment he has made of the effect of the Government's policy on funded childcare on the financial viability of childcare settings.

[Dan Carden (Liverpool, Walton) (Lab)]

15. What assessment he has made of the effect of the Government's policy on funded childcare on the financial viability of childcare settings.

[The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)]

By 2019-20, we will be spending an extra £1 billion annually on higher funding rates to deliver 30 hours of free childcare. The rates are based on our review of childcare costs, which was described as both thorough and wide-ranging by the National Audit Office. We have commissioned new research to understand providers’ current costs.

[Nadhim Zahawi]

We are spending record amounts on childcare—£6 billion in total. If we look at parents who got their 30 hours of childcare for three and four-year-olds, we see that 377,000 codes have been issued for the summer term. The system is working.

[Dan Carden]

Evidence to the Treasury Committee shows that the Government’s scheme is making childcare cheaper only for those already using it and failing to bring parents into work. How have Ministers created a system that pushes child carers into poverty and out of business, and prices out the poorest families in most need, like those in north Liverpool?

[Nadhim Zahawi]

Mr Speaker, you will not be surprised that I disagree with those words. A lone parent has to earn just over £6,500 and a couple just over £13,000 to be eligible for the 30-hours three and four-year-old offer. The Secretary of State spoke about the two-year-old 15 hour disadvantage offer and that same 15 hours for three and four-year-olds as well. The evidence is clear that the money is being targeted at those who are in most need.