Childcare: Affordability and Availability

Debate between David Simmonds and Claire Coutinho

Tuesday 20th December 2022 Westminster Hall

[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.