Childcare

Ellie Reeves Excerpts

Monday 13th September 2021 Westminster Hall

[Ellie Reeves (Lewisham West and Penge) (Lab)]

It is a pleasure to speak in this debate, Sir Roger, on a topic very close to my heart. I thank the Petitions Committee and all the petitioners for securing the debate. I want to start by paying tribute to all the early years educators in my constituency: the nurseries, pre-schools and childminders all worked tirelessly during the pandemic to look after some of the youngest in society.

Early years are critical for a child’s development and for determining their life chances, but the childcare sector faces pressures because of Government neglect over the last decade. Chronic underfunding has left nurseries and childminders facing a growing financial crisis. In this year alone, 2,500 providers have closed, and many talented staff have left the profession. Since 2015, 12,000 early education and childcare providers have been lost, with 30,000 more at risk of closure in the next year.

Millions of parents, particularly mothers, rely on childcare in order to work, and analysis by Pregnant Then Screwed shows that 345,000 women will be at risk of losing their jobs if further childcare providers are lost. Despite that, the Government have said that they are not planning a review of the childcare system or early years funding, but it is clear that urgent steps need to be taken to prevent further childcare closures and to rebuild that essential infrastructure. With the greatest respect to the hon. Member for Stroud (Siobhan Baillie), I imagine that the experiences of childcare and affordability are very different for the Prime Minister than for the vast majority of my constituents.

The funding model has a huge number of issues. Prior to the pandemic, 11% of childcare providers were running at a significant loss, with the industry as a whole suffering an estimated £662 million shortfall in funding. Meanwhile, public spending on childcare has fallen as a share of GDP since 2010, and remains considerably below the OECD average.

The Sutton Trust and the Institute for Fiscal Studies recently found that some of the poorest children are “locked out” of the 30-hours childcare scheme for three and four-year-olds simply because their parents do not earn enough to qualify, and that contributes to the widening gap between the poorest children and their peers before school even starts. The funds provided for that childcare, even by the Government’s own estimate, are not enough to fund the scheme.

A related issue is affordability. Fees have risen three times faster than wages since 2008, making the UK home to one of the most expensive childcare systems in the world. A survey published today, commissioned by a dozen organisations, found that 97% of respondents thought childcare was too expensive, and one third said that they paid more for their childcare than for their mortgage. We have already heard that in London, where I am an MP, the cost of nursery provision for a one-year-old grew seven times faster than wages between 2008 and 2016. It simply is not good enough for my constituents who rely on affordable childcare to be able to go out to work.

Finally, I want to say something about the conditions for people working in the childcare sector, where the average wage is £7.42 an hour. In 2019, almost half of childcare workers had to claim state benefits and tax credits, with one in 10 workers officially living in poverty. That is awful. How can we expect such an important job educating the youngest in society to be done for such low pay?

More and more evidence has been published on how critical early years are for a child’s development and future attainment. Investing in childcare therefore offers a huge opportunity to give each child a greater and more equal start in life. Investing in the sector should start by giving workers pay that reflects the importance of their work. High quality early education is an investment in the future—not a cost. A decade of neglect has left the sector in crisis. However, despite this, there are now so many opportunities for reform to benefit working families, future generations and our economy. I hope the Government will listen to the more than 100,000 people who signed the petition calling for today’s debate, and will provide good quality, genuinely affordable childcare for all.