Childcare: Early Years Funding

Earl of Listowel Excerpts

Monday 5th December 2016 Lords Chamber

Asked by

[The Earl of Listowel]

To ask Her Majesty’s Government whether they are planning to conduct an annual review of early years childcare funding to ensure sustainability and quality.

[The Parliamentary Under-Secretary of State, Department for Education (Lord Nash) (Con)]

My Lords, there are no plans to conduct a formal annual review. The Government are committed to providing high-quality early education for all children. We are investing an additional £1 billion a year in the early years free entitlements and last week we published the early years national funding formula, which ensures that this funding is allocated fairly and transparently. We will monitor the implementation of the 30 hours of childcare, and are clear that getting the funding right is critical to its successful delivery.

[The Earl of Listowel (CB)]

I thank the Minister for his reply, for the extension of 30 hours’ free childcare to working parents and for the funding thereof. Given the huge benefits to education and cognitive skills that high-quality early years childcare and education bring—they are so important to business and industry, to physical and mental health in adulthood, to remediating poverty and disadvantage for children, including looked-after children, and to productivity—will the Minister listen very carefully to the concerns of the sector that after this year the funding may not be sufficient? His Answer was reassuring to some extent. We should consider that investing in the highest-quality early-years care and education is essential to an infrastructure for successful economic development.

[Lord Nash]

My Lords, I could not agree more, and that is why we are spending more than £6 billion a year by 2019-20 on early years education and childcare—more than any other Government in this country ever. We know that we need to get the funding right. Our announcement last week of a £4.30 minimum funding rate for local authorities, paid for with additional investment, shows that we are listening to the sector. The cost of childcare review was very thorough—indeed, the National Audit Office said that it was “thorough and wide-ranging”.