Childcare and Early Years

Debate between David Simmonds and Anna Firth

Wednesday 8th March 2023 Commons Chamber

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

This has been a rich debate, and while I agree with much that has been said, it is important to focus on some things relating to the distribution of funding within the estimates that have not been covered in great detail.

As a father of two very young children and someone who spent a long time as a councillor responsible for education and children’s services in a London local authority, and having been present at the inception of the Sure Start programme through to its delivery, with the expectations that were imposed on us as a local authority, and even at the origins of the dedicated schools grants, I find it interesting that many of the trends that people are debating today have been present for a long time in our debates about the way we run our early years.

Over that period, there has been a great deal of progress. The Blair Labour Government were particularly focused on getting more women into work, and that was the focus of what they drove local authorities to do. It is good that over time we have had a switch to a broader appreciation of the benefits to the child and the baby that derive from high-quality early education and care provided in formal and Ofsted-regulated settings. In turn, that has led to greater research and evidence of outcomes. We have been able to focus that investment in a way that is not only more supportive of bringing parents into work, important as that is for a child’s outcomes, but that focuses on the things that help a child to prepare for their journey through school, to the extent that some research can clearly pinpoint from a child’s attainment at the earliest foundation stage, how they will do when they come to key stage 5.

[Anna Firth (Southend West) (Con)]

My hon. Friend is making an excellent speech, and I agree with him entirely about the progress that has been made in this area by successive Governments. Indeed, I have outstanding examples of early care in my constituency, such as ABC Rainbow Nursery, Home From Home Nursery, and Small Friends Day Nursery, to name but a few. Now the evidence is clear—we heard evidence today from the Nobel laureate James Heckman—that every pound invested in early years education delivers a return on that investment of £13 in better grades, better jobs and better mental health. Does my hon. Friend agree that, when we have such an obvious, clear open goal and an opportunity to invest in this country’s future, it is a little concerning to see in today’s estimates that early years funding will increase by only £52 million, which is only 1.4%, and that only £35 million is going into early years schools, which is just 1%? If we are looking at this with a view to investing in our country’s future, we would want that 1.4% to go up as soon as possible, and we hope the Chancellor will be listening to these submissions.

[David Simmonds]

My hon. Friend is absolutely correct to highlight the point about return on investment. As a Conservative politician, I always welcome it when I hear Ministers thinking not just about how much a particular course of action will cost the taxpayer, but about what the return is. As we know, one challenge in education—we see it throughout the departmental estimates and in local authority spending returns—is that how we count something is enormously significant in interpreting what it means. We have seen record spending in schools; we have also seen record numbers of children in schools. There are those who say that the issue is per capita spending; others will say that in aggregate the schools budget is larger than it has ever been. Of course, both arguments can be true at the same time. I am sure my hon. Friend the Minister will address the point about return on investment in her response, in the context of the overall school budget and the spend per child.

Let me turn to the method of distribution and how significant it is for the outcomes we want to see. The Department for Education sets out what its spending expectations are in its estimate and then allocates budgets to local authorities. The cash arrives somewhat later in the year, following counts of the number of children in a given area, which usually take place around autumn. Each local authority is then required, through its school forum, to hold a consultation with all those who have a stake in the distribution of that funding at a local level. The early years block forms part of a decision-making process where it is not just early years practitioners who are sat at the table, but the headteachers of big secondary schools, whose budgets tend to dominate the discussion, alongside headteachers of primary schools and representatives of the special educational needs system. That funding, which is ring-fenced within the local authority, is paid in due course to the providers, based on the returns of how many children are there.

It is interesting to note from the Department’s published figures that, in the most recent year for which numbers were available, there was a £55 million underspend nationally in the early years block. The money we allocate to early years is therefore effectively going unspent and being held within the dedicated schools grant at the local level. That might be partly to do with the fact that, because of parental concerns following the covid pandemic, a number of children who would have been expected to be in nursery had not yet started. That would account for it; and yet we see a consistent pattern, certainly since the creation of the dedicated schools grant, of high pressure on special educational needs and disability in particular, pretty much consistent spend of the schools block, exactly as we would expect, and the development of underspends in early years.

When we look at the research into the impact of how we spend that funding, it is worth looking at the flexibilities that we can create in the DSG element of early years funding, not least because, as a number of Members have alluded to, we have lost a significant number of childminders from the early years market, and there are new types of providers that are interested in entering the market, as my hon. Friend the Member for Stroud (Siobhan Baillie) described. I would argue that the fact that a local authority can only pay that money at a given rate, to a given provider and through a strictly determined DFE process means that it is not available to support the development of, for example, new entrants to the market and new types of providers that might like to set up. While we would clearly wish those new providers to fall within Ofsted’s remit, in order to guarantee quality, there is an opportunity to use those existing resources more flexibly, perhaps to develop the market a little further.

At the same time, it is welcome that it is not just DFE funding that finds its way to those providers. There is also the voucher scheme and tax-free childcare, on which I declare an interest as I am personally a beneficiary. Although the use of National Savings and Investments as the payment provider means it seems to take quite a lot longer for the many transfers to take place than would be the case with most other financial institutions, it works very effectively as a substantial subsidy towards the cost of childcare.

For children with special educational needs, there are additional forms of funding. There is the early years pupil premium. To the point my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) made so powerfully, in my time as a cabinet member for education, I saw the benefits to a whole variety of different outcomes from maintained nursery schools. The fact that there is within the DFE system the supplementary funding for maintained nursery schools is most welcome. In children’s centres and early years settings, it can be transformational for a child who may have quite profound disabilities to be able to access good-quality early education at the same time as other children. The disability access fund helps support children to access those settings, with additional money to provide equipment. I saw in my own children’s nursery settings medical equipment and additional technical equipment brought in to ensure that that child could have an equal place alongside their peers at the start of their life. That is incredibly important. I absolutely commend the Government for progressing that and ensuring it is seen by parents as a way of getting their child an equal start in life with their peers.

I want to turn to a point, raised previously my hon. Friend the Minister and a number of other colleagues, relating to an area where we have an opportunity to develop the early years market: schools as providers of early years services. A very large proportion of primary schools have school nurseries that take children earlier than the statutory school age. However, the vast majority of those schools will only offer parents a very limited number of hours, typically from 8.30 am to 11.30 am, and then maybe from midday to 3 pm or 3.30 pm. For most working parents, that will never be sufficient to make it a viable option. In practice, it means that they have to find all their childcare in the private sector, even though there is a state-funded school with top-quality facilities that their child is quite likely to start when they reach statutory school age, which is very close to their home. In practice, it is only parents who are not working, or children who are in a situation where perhaps a family member or a childminder can look after them full time, who are able to access those services.

I urge the Government to think about a more directional approach with schools. In school settings where a breakfast club and an afterschool club are already provided on site for children of statutory school age—so the school is open, staffed and operating during those periods—it is not acceptable to say that its early years facilities are only available for such limited periods. The taxpayer is putting the money in to ensure that these are good-quality settings with fully trained staff. We need to get those schools to the point where they are playing a much more significant part in the provision of early education and childcare. That would help to improve supply, potentially raise quality and reduce the cost to parents.

We are focusing on childcare and early years, but we must not forget that many parents will go through a significant period of their lives with one child who is pre-statutory school age and another child who is of statutory school age. In larger families, there might be quite a number of children. Constituents have told me about the challenges in managing a situation where there is a four-year-old through to a 15-year-old: everything from finding a family car with enough child-safe car seats to transport them around the place, through to trying to manage a normal working life. Schools already provide some of that patchwork, so expanding their offer, in particular ensuring that childcare around school-age children is of a high standard, high quality and as affordable as possible, needs to be a priority.

The Department has not always had the rosiest view of the capacity of local authorities, but it is my experience that the good ones, of which there are examples in every part of the country, have shown that when they have the flexibility they are very good at innovating and finding new ways of delivering these kinds of services. Where there is a new provider with a new model in the local area, they can use the resources available to them flexibly to enable that to go to scale and serve a much larger population of parents.

I would like to spend a moment on how we spend the money in this budget. Lots of Members have given good examples of the transformational effect of particular services. It remains an issue for us as a country—and for the international community—that the impact of interventions in early childhood and childhood more generally are not well-researched. Therefore, the decision making around that is not always very well-evidenced.

My experience of Sure Start is that when the programme was first implemented, it was very focused on capital expenditure on buildings. In the local authority, the direction to me was that my priority was to get the buildings constructed and opened by the deadlines—that was what mattered more than anything else. At the same time, some of the research that emerged as those programmes were evaluated showed that the evidence was mixed. A lot of the evaluations were carried out on the basis of whether parents felt that they had enjoyed their involvement with the children’s centre and whether they felt that it had been useful, rather than looking at the long-term metrics. Long-term metrics on obesity, for example, showed that they had had a positive impact. Other metrics showed that they had not. We cannot assume that because something was popular and well-liked, it was also effective at giving children the transformational opportunity intended.

In my experience, because Government deadlines for their opening had to be met, buildings were often provided on existing local authority-owned land adjacent to schools. The primary focus of the centres therefore became the school readiness of children who were going to attend a particular school, rather than the broader service of the community and the most vulnerable, which was the intention.

Strikes (Minimum Service Levels) Bill

Debate between David Simmonds and Anna Firth

Committee stage
Monday 30th January 2023 Commons Chamber

[Anna Firth (Southend West) (Con)]

It is a pleasure to follow the hon. Member for Edinburgh West (Christine Jardine) and to have listened to the very learned submissions from my hon. Friend the Member for Newbury (Laura Farris), who brings considerable experience to bear from a distinguished career at the Bar in this area. I was grateful to listen to those submissions.

I rise to speak against these amendments, particularly amendments 9 to 14, and 73 to 75, because I take the simplistic view that all of us here have been elected to represent all of our constituents and all of our communities. That requires that we balance the rights of people to strike. As I said when I last spoke in this debate, I do accept that it is a fundamental right of public sector workers to be able to strike, but it is not unqualified, because we have already excluded the police and the Army from that right. The Bill seeks to restore the balance between the right to strike and the right of the public to know that access to key, often lifesaving, services and their livelihoods will be protected. Moreover, the Bill seeks to ensure that when public sector workers wish to exercise that right to strike, they can do so safely. For those reasons, I do not believe the Bill needs to be amended.

We have heard a lot said about a poor service on days when there are no strikes, but I am delighted to say that health workers in Southend West have not joined in with the national strike action. So I am standing here to ensure that everyone who is not lucky enough to live in picturesque Leigh-on-Sea and Southend has the same levels of care on all days. The Bill is a recognition that some of our public services are vital and that hard-working taxpayers deserve a minimum level of service. The public have the right to get on with their daily lives and access public services just as much as workers have the right to strike.

Those public services must include health, education and transport. I was deeply disappointed to read on a BBC breaking news alert only this afternoon that the Fire Brigades Union has opted to strike. I will certainly be in touch with my local police and crime commissioner to ask how we can minimise any disruption on those days to people living in my constituency. I am also disappointed that the planned strikes in schools are going ahead, which is not just a problem for students. In my constituency, two schools, Chalkwell Hall Junior School and Heycroft Primary School, are going on strike, affecting nearly 900 pupils. Those schools will close and that is a crying shame. Those children have not had a single year of undisrupted education since they started.

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

Does my hon. Friend think that it would be helpful if there were a requirement for a minimum notice period, so that schools could at least let parents know that they will close? At present, many schools affected by these decisions do not know what will happen on Wednesday.

[Anna Firth]

My hon. Friend makes a critical point. Not only should there be decent notice, but schools should all be required to run a minimum service, so that we do not have our children’s education disrupted again. A total of 270 million pupil days have already been lost through the covid pandemic and our children deserve better.

Financial Services and Markets Bill

Debate between David Simmonds and Anna Firth

Report stage
Wednesday 7th December 2022 Commons Chamber

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

I am delighted to be able to speak in support of the Government this evening, because this Bill is of great importance to my constituents, many of whom work in our financial sector, and also to the capital city, of which my constituency is a part.

Since I contributed to the earlier stages of the Bill, I have had the opportunity to hear from UK Finance, Zurich, Lloyds, the London Chamber of Commerce and Industry, the Property Institute and Just Group and many others, and they have reflected back to me the broad and strong support of the financial sector, which is the jewel in our industrial crown, for the measures that the Bill envisages. The key thing from the perspective of my constituents is that the Bill seeks to right-size regulation in the United Kingdom to reflect the fact that the risks and the challenges that the sector faces change over time. Just as we need to manage the risk from competitors, through the measures on competitiveness, we also need to ensure that we have a financial sector that enables all of our citizens to access the broadest possible range of financial services.

I have listened carefully to the points made about financial inclusion, for example, which are very important in the context of our financial sector. We need to ensure—and I think this Bill does—an appropriate balance between products that are pricing in a degree of risk, but that enable people to build their creditworthiness and their participation in the benefits that the financial sector can bring in their lives, with a recognition that there are risks to constituents, in particular from the development of new products, which the Bill seeks to address through better regulation in areas such as crypto investments.

Briefly, on new clause 27, although I have sympathy with the points that have been made by a number of Members, this strikes me as an example of where there is a significant risk of unintended consequences. As Ministers have heard, there is a need for due process for those who feel that they have been wronged by the decisions of a provider to be able to seek a remedy for that, but we do not want to get into the kind of situation that we have seen in the past, where an obligation to provide a universal service sees significant numbers of providers—useful providers—exiting the market because they are not prepared to accept the risks that come with that. My view is that the Government are finding about the right balance.

Let me turn now to the issues around the Financial Conduct Authority and the regulators. There will be a new chair of the FCA from 21 February next year. I wish to bring to the attention of the House and of Ministers that the strong view of my constituents and many in the sector is that we need to see a greater degree of rigour in the enforcement action that the FCA in particular is able to take. It is a matter not of new powers, but of making sure that they are operating effectively.

In respect of access to cash, I would like to thank Ministers. Certainly, in my constituency, we have seen really significant efforts by financial institutions to ensure that every high street has at least one free-to-use cashpoint, and, thus far, the feedback from business owners is very good.

In conclusion, I strongly support the Government’s position. I am not afraid to say if I think things are going wrong, but, in this case, it is clear to me that the Bill is beneficial to my constituents as business owners, as employees in the sector, and as consumers of the sector’s product, and it is beneficial to the taxpayers of the United Kingdom.

[Anna Firth (Southend West) (Con)]

I rise in support of new clause 17. The Bill is central to the Government’s commitment to long-term economic sustainability while also ensuring that our banking system is fair and provides reasonable protections for the vulnerable, including continued access to cash. Now that we are outside the EU, it is vital that we take this opportunity to build an even more agile and an even more muscular internationally facing financial centre. To do that, we need regulation that is designed to unlock growth, that will attract international investment into the UK, and that will also attract the best talent into our financial services sector, while not forgetting our equally important duty to level up financial services across the UK, including continued access to cash, to which I wish to turn straight away.

I welcome the wording of the Bill about providing “reasonable” access to cash. I appreciate that the Government have a balancing act to perform, given a fast-moving sector, changing consumer patterns and the need to provide protections. It is a balance that the Government have provided with this “reasonable” access to cash.

I wish to place on record that in picturesque Leigh-on-Sea, a part of wonderful Southend West, we have lost every single one of our high street banks over the past four years. In a constituency such as Southend West, where over one fifth of the population are over 65 and more than 6% are over 80—significantly more than the national average—local banking services are vital. Senior citizens in Southend West do not want to bank online, they do not want to bank on an app, and they should not have to. That is why I am working with fantastic organisations such as LINK and OneBanx to set up a local banking hub.