Childcare: Affordability and Availability

David Simmonds Excerpts

Tuesday 20th December 2022 Westminster Hall

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

It is a pleasure, once again this afternoon, to serve under your chairmanship, Mr Hosie. It is also a pleasure to debate issues around childcare for the second time in fairly quick succession in Westminster Hall. I think that is helpful because it shows that, across the Chamber, as well as from the hon. Member for Slough (Mr Dhesi), there is a great deal of interest in how we improve the care of our youngest citizens.

I thank the Minister for the personal interest that I know she has taken in this issue. It was a pleasure to welcome her to Harefield Infant School in my constituency, and to hear from a headteacher who is also very much engaged with the local children’s centre about the way in which parents interact with it—the journey that they go on from the moment their child goes through the door of the children’s centre, how they access childcare in the local area, and how the child develops to be, hopefully, school-ready. The headteacher also described how such settings, by working together in partnership, can address the kind of emerging issues that we have heard about. That may include special educational needs and disabilities, and safeguarding issues, which often first come to light when the child is in a formal setting.

It is perhaps worth my framing my contribution to the debate by saying that I have had the privilege of being a lead member for children’s services in a local authority, both under the previous Labour Government and in the years since 2010, with the election of the coalition and then a Conservative Government. I have had the opportunity to see how childcare policy in the UK has developed over those years. I think it is fair to say that in the Labour years, when attention to childcare was a relatively new thing from Government, the key focus was very much on the availability of the cheapest possible childcare in order to encourage women to rejoin the workforce.

Since the coalition was elected in 2010, there has been a much greater focus on not just availability to encourage people to go to work, but the quality of what happens in those settings. Examples of that include the development of the childcare workforce and a focus on qualifications, on the quality of the physical environment in particular settings, and on the way in which Ofsted regulates those settings to ensure that every childcare placement is not just safe, but an environment in which children can thrive. As the parent of two very young children—I am sure the hon. Member for Slough would acknowledge this—I can say that children are expensive, and delivering quality for them is even more expensive.

It is helpful to reflect on a number of the policies that the Government have introduced in the past few years that have gone to the heart of extending both the availability and the affordability of childcare. Both from a policy perspective and as somebody who has been through this as a parent of young children, I welcome the fact that the Government have focused on direct support for families and, particularly, working families through the advent of the tax-free childcare policy. Although it is right that the Government are now focusing on a programme to raise awareness of that policy among working parents and to increase its take-up, it has been enormously helpful in making access to childcare much more affordable for working parents.

There are some technical issues that could be addressed. The decision to use National Savings and Investments as the payment processing organisation for tax-free childcare accounts generally means that it takes a long time for a parent’s contribution to make its way to the childcare provider. That makes the process more difficult than a faster payments processing provider would when changes of arrangements need to be made at short notice—for example, when there are school holidays and changing work patterns. None the less, treating childcare in the same way as we incentivise people’s personal pensions or their saving to buy their first home, for example, by giving them tax relief is an important, valuable step. It is also reflected in the direct support that families receive through universal credit, although the points that the hon. Member for Slough made are important to bear in mind. The way in which that system works is worth considering.

Let me turn to the broader context of availability. For many years, local authorities have had a duty to secure both the availability and the supply of childcare in their local area, and to play a role in developing that market. It is important to be clear that local authorities are not the providers, but if we look at the London Boroughs of Hillingdon and of Harrow, which serve my constituency, both authorities have a families information service that parents can contact to find out where they can access a childminder or a nursery placement in their local area, and also access information about other issues to do with childcare. For example, if a child has special educational needs or disabilities, their parents might need to access a specialist organisation to guide that child on their journey, and the families information service can point them in the correct direction.

Many families will be able to access a proportion of free hours that increase as the child gets older. That does not just provide an effective subsidy to the hours that would otherwise be paid for by working parents, enabling them to top up from their tax-free childcare account, but means that a greater proportion of children in the lowest-income households can access that free childcare early. Those of us who are parents will have seen from the recent communications from our children’s schools that as we go into the Christmas holiday period, we are being made aware of what the local authority and other organisations are doing. Families that are eligible for the holidays activities and food programme are being alerted to it, and we are being alerted to what local authorities are doing about safeguarding through our schools, so that we know what to do should we have those urgent needs, or should our neighbours, friends and acquaintances require that support as the holidays get under way.

Moving towards a conclusion, although it is easy to criticise, we need to recognise that the focus on how we spend the money and how we ensure the highest possible quality in our nurseries and among our childminders has been a big benefit to childcare in the UK. The Government’s announcement of a substantial investment in the early years workforce is an important step in the right direction. The focus on Ofsted as the regulator of quality is significant, as is the developing evidence base from organisations such as the What Works centres funded by the Department for Education, which look at the best means of intervening to help children in the earliest years of their lives.

With respect to the ability to secure new infrastructure where a lack of buildings or physical capacity is a challenge—we aired that during the debate on the Levelling-up and Regeneration Bill last week—capital contributions by developers under section 106 of the Town and Country Planning Act 1990 can be used to create new early years and childcare facilities where that is a priority for a local area. Although that guidance is owned by the Department for Education and not the Department for Levelling Up, Housing and Communities, it remains in place so that new infrastructure measures envisaged in the Levellinyg-Up and Regeneration Bill will include the ability to use that money in the same way local authorities might use it to support police and law and order organisations in their local area.

It is clear that a number of different resources and steps are available on the capital side to help with the physical creation of new capacity. It is also possible to invest in the workforce to improve the quality of what is available, and introduce a broader set of policies with direct support to ensure that working families and parents have childcare available to them.

I will finish with a plea, once again, to recognise that, although research overwhelmingly shows that the money we spend in the earliest years has the biggest impact on outcomes in children, the way in which we distribute education funding still favours much older children. There needs to be a national debate about the fact that although everybody pays attention to GCSE results, it is the money spent on nought to five-year-olds that gives children the best possible chance when they are 16 and 18 and as they go into adulthood. We need to look at rebalancing the way we spend that money over time, so that we spend it where it has the greatest positive impact.

--- Later in debate ---

[Claire Coutinho]

As of last year, we had set out half a billion pounds of extra funding to go into the sector. We have also set up energy support, as I mentioned, which will help with the increased costs, which we know lots of providers are facing this winter. Of course I will continue to look at everything that I can do in this area and I am committed to ensuring we can make this work.

[David Simmonds]

The last year for which we have figures available shows that a total of £62 million in unspent funds was ringfenced within the dedicated schools grant for early years. That is money that the Government have made available that cannot be spent because the funding formula means that a council, for example, cannot reallocate it to increase the funding rate to its local settings and it can be spent only in accordance with the constraints of the national funding formula. While that would not go all the way towards bridging the gap, will the Minister consider looking again at the funding formula regulations, so that local discretion could allow funds that are already allocated to be redistributed in a way that might help address some of the policy issues that she has outlined?

[Claire Coutinho]

As ever, my hon. Friend makes a detailed and interesting point that I will take away. I will look at the underspend and see what can be done, and I will come back to him as soon as I can.

In addition to the 30 hours, we remain committed to continuing the universal 15 hours of free early education, which this year helped over 1 million children get a positive start to their education.

Government support for childcare is not limited to three and four-year-olds. In 2013, the Conservative- led coalition Government introduced 15 hours of free childcare for disadvantaged two-year-olds. Some 72% of disadvantaged two-year-olds were registered for a free early education place in January 2022, and over 1.2 million children have benefited since its introduction.

Following a consultation in May 2022, we extended eligibility for this entitlement to children in no recourse to public fund households; that was first implemented in September this year. I urge all hon. Members to encourage families from lower income backgrounds to take up that generous offer. Children who take it up do better at school and it gives them vital skills that set them up for life.

I recognise that childcare must be accessible to parents as well as affordable. That is why the Government continue to monitor the sufficiency of childcare to ensure that childcare places are easily available. The key measure of sufficiency is whether the supply of available places is sufficient to meet the requirements of parents and children. Ofsted data shows that the number of places offered by providers in the early years register has remained broadly stable since 2015.

Under section 6 of the Childcare Act 2006, local authorities are responsible for ensuring

“that the provision of childcare…is sufficient to meet the requirements of parents in their area”.

The Department has regular contact with each local authority in England, and if a local authority raises concerns about sufficiency issues we will, of course, support it with any specific requirements. We are currently seeking to procure a contract that will provide reactive and proactive support to local authorities in fulfilling their childcare sufficiency duties.

The majority of early years childcare places— 68% in England—are provided by private, voluntary and independent group-based providers who continue to provide high quality childcare for families. The number of places, as I said, has remained broadly stable, and 96% of those early years childcare providers are rated good or outstanding. That is testimony to the many people who work in that brilliant sector.

Once again, I thank the hon. Member for Slough for securing the debate. The early years sector is an integral part of our economy and education, so my Department treats any changes to the system carefully. Our childcare offer is co-ordinated with other Departments to allow parents a range of options, depending on whether they want their children to receive childcare in a formal, nursery-style setting or from a childminder in a home.

Finally, I reassure the hon. Gentleman, and all hon. Members present, that my Department continues to evaluate what more can be done to help parents access a childcare place that not only suits their working arrangements or family circumstances but gives their child a positive start to their education. I look forward to working with him in future to hear his further thoughts on making our childcare system the best it can be.