Baroness Chapman of Darlington
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Childcare Bill [Lords]
Baroness Chapman of Darlington Excerpts(8 years, 3 months ago)
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Jenny Chapman (Darlington) (Lab)
I beg to move, That the clause be read a Second time.
Mr Speaker
With this it will be convenient to discuss the following:
New clause 2—Attainment and development of children—
“(1) In discharging the duty under section 1(1), the Secretary of State must have regard to narrowing the attainment and development gap between young children—
(a) of different genders;
(b) of different ethnic backgrounds;
(c) of different socio-economic backgrounds;
(d) living in different regions; and
(e) who do and do not have a disability.
(2) Within 12 months of the passing of this Act the Secretary of State must lay before both Houses of Parliament a report containing an evaluation of the impact of discharging the duty under section 1(1) on narrowing the attainment and development gap between young children—
(a) of different genders;
(b) of different socio-economic backgrounds;
(c) of different ethnic backgrounds;
(d) living in different regions; and
(e) who do and do not have a disability.”
This new clause would require the Secretary of State, in discharging her duty under this Act, to have regard to the attainment and development gap between different groups of children. The Secretary of State would also have to publish a report on the impact of discharging her duty on such gaps.
Amendment 1, clause 1, page 2, line 8, at end insert—
“(4A) Regulations under subsection (4) must provide for victims of domestic violence who have left paid employment in order to escape such violence to continue to be eligible for 30 hours of free childcare per week under section 1.”
This amendment seeks to ensure that provision is made for people who are suffering domestic violence who leave paid employment in order to escape their situation to continue to receiving 30 hours of free childcare per week.
Amendment 2, page 2, line 8, at end insert—
“(4A) Regulations under subsection (4) must set out in what circumstances a parent or partner who is a student nurse will be considered to meet any conditions relating to paid work.”
This amendment seeks to ensure that provision is made for student nurses to be eligible for 30 hours of childcare per week under this Act.
Jenny Chapman
I spent five years on the shadow Justice team and had to speak to many really quite dreadful Bills. It is a soft landing for me to be greeted by the remaining stages of this Bill, which is, essentially, uncontroversial. We enthusiastically support its aims.
I pay tribute to my hon. Friend the Member for North West Durham (Pat Glass) for her sterling work in challenging the Minister as the Bill made its way through Committee. She is, as everybody here will know, a ferocious champion of quality provision for all children, and she has particular expertise in services for children with disabilities. Having read the Hansard record of the debates in Committee, it is obvious how valuable her contributions were. She will be a miss to the shadow Education team, but in her new role she will be a robust champion and defender of Britain’s membership of the European Union as we approach the forthcoming referendum, whenever that may be.
New clause 1, tabled in my name and those of my hon. Friends, requires the Government to evaluate the implementation and effectiveness of the Bill, should it become an Act. As well as spending five years on the shadow Justice team, I spent five years serving on the Procedure Committee. In that time, we pondered the value of pre-legislative scrutiny and longed for a position in which Governments consulted meaningfully on their plans. I believe post-legislative scrutiny would be of similar value. The principal problem with the Bill is that it does not do what the Prime Minister claimed it would. During the election campaign—I know those are heady moments for all of us and there are those in my party, too, who occasionally get carried away—the Prime Minister, in one particularly effervescent moment, proclaimed in a press release:
“For families with young children, this is not one issue among many—it is the issue. They’re asking ‘How can this work? How can we afford it?’ It shouldn’t have to be this way. It is why we already fund 15 hours of free childcare a week to working parents of three and four-year-olds.”
He said:
“I can tell you today we’re going further a lot further. We’re going to take that free childcare and we’re going to double it.”
Jenny Chapman
It’s fantastic stuff, isn’t it? There is more:
“With a Conservative Government, you will get 30 hours of free childcare a week”.
Marvellous! Had I believed it, I might just have voted for it myself.
The trouble is that thousands of families did believe the Prime Minister when he promised to double the 15 hours of free childcare per week. How disappointed they will be to discover that the promise was false! Even those who dug deep and read the small print will be disappointed. When he made the promise, there was a caveat in the notes at the bottom of the press release: children will get the free childcare only if their parents are working more than eight hours a week. Thousands of families in which both parents worked more than eight hours a week each could plan on that basis, or so they thought—the Bill says nothing about eight hours. The Government now say that both parents must be working at least 16 hours a week, at the minimum wage, or, just to confuse things a bit more, earning above the equivalent earnings of 16 hours per week on the minimum wage but in fewer hours.
The Government, in their spin, misled the public, then they misled families with the detail, and now they are confusing parents and providers with the implementation. That is why I support new clause 1. It is necessary to ensure the Government examine the Bill after its enactment, which could have some serious unintended consequences. The first potential consequence I would like the Government to monitor is the impact on the supply and quality of childcare places.
The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)
All parties at the last general election promised to increase the free entitlement. Labour promised to increase it from 15 hours to 25 hours for working parents. The Conservative party promised to increase it from 15 hours to 30 hours for working parents. Who would she have included or excluded from Labour’s definition of working parents?
Jenny Chapman
As I will explain, the problem is with who the Government are excluding. People earning more than the minimum wage but working fewer hours would be entitled to the Minister’s 15 additional free hours, whereas someone working 15 hours on the minimum wage will not be entitled to them. If I am wrong, I will gladly let him intervene to correct me.
Mr Gyimah
The hon. Lady mentioned the hon. Member for North West Durham (Pat Glass), who, at the end of the Committee stage, said it was a good Bill and that she could find nothing in it with which to disagree. I hope, in their handover, they had that discussion. The eligibility criteria are very straightforward. Eligibility will be judged on income. If someone is under 25 and earning the national living wage, they will need to earn £107 a week. If they are over 25 and earning the national living wage, which the Government are introducing, the calculation will be the national living wage times the number of hours they can work. It is very straightforward.
Jenny Chapman
Well, I am glad that’s as simple as it gets. I said at the outset that I supported the Bill reasonably enthusiastically, but it is a bit arrogant of the Minister to suggest that it is a perfect Bill and that it has no complexity. As he just demonstrated incredibly well, there is huge complexity. Somebody on low earnings and working fewer than 16 hours a week will not qualify, but someone on higher earnings—
Jenny Chapman
The Minister says that universal credit will help improve the system. I venture to suggest that it might well further complicate the situation.
The new clause is designed to ensure that these perceived and anticipated complications do not have unintended consequences. As I have said, I accept that they are unintended, but the Minister would be rather naive to think that these consequences could never occur.
Chloe Smith (Norwich North) (Con)
I am extremely grateful to the hon. Lady for giving way, but I struggle somewhat to understand how anything that she has spoken about will be achieved through new clause 1.
Jenny Chapman
Is the hon. Lady looking at the wrong piece of paper? I shall go on to explain what is in new clause 1, and if she listens carefully, she will understand what we are trying to get at.
The new analysis by the House of Commons Library reveals a black hole of £480 million in the funding of this childcare offer. That shortfall represents £470 per child each year for those taking up the full 30 hours of free childcare. Independent research undertaken by research company Ceeda, as commissioned by the Pre-School Learning Alliance, suggests that the Department’s funding review has underestimated the cost of delivering childcare. The researchers found that, if funded at the average rate of £4.83 an hour—£4.88 minus the early years pupil premium, which the Department claims is worth 5p an hour—announced by the Government on 25 November, nurseries and pre-schools would face an annual shortfall of £233.70 per child for three and four-year-olds taking up the existing 15-hour entitlement, and £467.40 for those taking up the full 30 hours.
What could be the consequence of that funding gap? Childcare providers will have some difficult choices to make. There is every possibility that in an attempt to make ends meet, the gap will be met through driving down quality, while some providers might leave the market altogether, resulting in less choice for parents and a lack of supply. The Pre-School Learning Alliance warns, rather ominously, that as the existing scheme is significantly underfunded, it is now “crunch time” for the sector. The sector is already in a precarious position, and the Minister needs to reflect on the fact that the Family and Childcare Trust reports that a quarter of local authorities have a shortage of places for children in their existing schemes. There are 40,000 fewer places now than there were in 2010. Given that the Government failed to build capacity in the sector, how are the extra hours going to happen and how does the Minister think providers are going to pay for it? New clause 1 flags up those issues for the Government and asks Ministers to monitor the effect of the new arrangements.
Mr Gyimah
I thank the hon. Lady for being so generous in giving way. The Conservative party promised at the election to increase the average funding rate and it is delivering on that promise. The Labour party did not promise to increase the hourly rate. If the hon. Lady is arguing that the funding rate is not enough, will she tell us what the Labour party considers to be the right funding rate for the entitlement?
Jenny Chapman
I do wish it was my Bill that we were debating here. I really do, but it is not; it is the Minister’s Bill and it is for him to defend it and to argue against my new clause. That is why we are here. This is not a re-run of the election campaign. I am sure we are all glad about that—I know I am!
New clause 1 also asks the Government to evaluate the impact on parental employment and the administrative burdens placed on parents and providers. What parents want, aside from high-quality and affordable provision, is a scheme that is easy to understand and predictable. After someone has had a baby, deciding when to return to work and for how many hours is a difficult and finely balanced choice. Employers and parents need certainty. As parents fret over the balance between work and family life, employers and co-workers also make choices about their hours and staffing. We want those parents who choose to work to be able to do so. Any opaqueness about eligibility is damaging to take-up of the scheme and harms the confidence that the Government will not move the goalposts once complex family arrangements have been put in place. The proposed scheme, under which someone earning £107 in half a day would be eligible for 30 hours per week of free childcare but someone who works 15 hours a week on the minimum wage is not eligible, will seem bonkers to most people. I therefore urge the Government to do as new clause 1 suggests and monitor the impact of this change, in particular on parental employment patterns.
Mr Gyimah
The hon. Lady raises important questions about parents on zero-hours contracts and how they will be monitored. The first point is that parents on zero-hours contracts are self-employed; they are all entitled to the childcare under this scheme. HMRC will check the income levels, and in the case of the self-employed will know how much they earn over a period of time. In addition, and more importantly, there is a grace period so that if someone falls out of work for a period they will not lose their childcare.
Jenny Chapman
I am, of course, grateful to the Minister for his intervention, but I might just suggest that he will get the opportunity to make his own speech when I have finished, and he might want to answer some of my questions then. I will move on—
Alex Cunningham
I am grateful to my constituency near-neighbour for giving way. I was pleased to serve on the Bill Committee and I have never seen a Minister intervene so often during others’ speeches with reassurances such as “the Prime Minister’s promise will be fulfilled,” or “There will be sufficient quality places,” and all manner of other such statements. Would not the Minister be seen to be really reassuring us if he accepted new clause 1 and the scrutiny put down in law?
Jenny Chapman
My hon. Friend makes a good point, and does so very well. We all like a keen and perky and eager Minister, but it would be good if he were more willing to hold himself to account, after the introduction of this Bill, by adopting new clause 1. However, I shall move on to new clause 2.
This new clause, also in my name and that of my hon. Friends, requires the Government to monitor and report on the state of the attainment gap between young children, and it specifies between “different genders”, “different ethnic backgrounds”, “different socio-economic backgrounds”, those living in different parts of the country, and those
“who do and do not have a disability”.
Our experience tells us that unless Ministers monitor, and are required to report on, the gap, focus will be lost and equality of opportunity for all young people will never be achieved.
I would like to acknowledge the invaluable work of the Social Mobility and Child Poverty Commission in helping us to prepare new clause 2. I believe that setting up the commission was relatively easy for the Government, but listening to it and acting on what it says seem to be a step too far for them. The new clause would provide an opportunity to put that right in a very small way. The commission states that the Britain we should all aspire to help to build is
“one where opportunities are shared equally and are not dependent on the family you were born into, the place where you live or the school you attend. It is a society where being born poor does not condemn someone to a lifetime of poverty. Instead it is a society where your progress in life—the job you do, the income you earn, the lifestyle you enjoy—depends on your aptitude and ability, not your background or your birth.”
The commission’s most recent report warns that Britain is on the verge of becoming a “permanently divided nation”, and exposes some of the deep divisions that characterise our country. Those at the top in Britain today look remarkably similar to those who rose to the top 50 years ago. For example, 71% of senior judges, 62% of senior armed forces personnel and 55% of civil service departmental heads attended private schools, compared with just 7% of the general population.
Britain could become the most open, fair and mobile society in the modern world, but the policy and practice of this Government need to change, and that all starts with the early years. All children, whatever their background, should be school-ready by the age of five. However, less than half of the poorest children in England are ready for school by that age, compared with two thirds of the others, and a deep gender divide means that girls from the poorest families do almost as well as boys from the better-off families at that point. The commission has found that,
“efforts to improve the school-readiness of the poorest children are uncoordinated, confused and patchy.”
It also comments that,
“the complexity of the childcare funding system is hampering efforts to increase maternal employment.”
The commission has some straightforward suggestions for the Government to help to narrow the gap at the age of five. It says that the
“Government should end the strategic vacuum in the early years by introducing two clear, stretching, long-term objectives: to halve the development gap between the poorest children and the rest at age five; and to halve the gap in maternal employment between England and the best-performing nations, both by 2025.”
Further, the commission argues in relation to childcare that the Government
“should radically simplify the multiple streams which finance it”.
New clause 2 tells the Government that willing the gap in attainment and development of children to narrow is not enough. However, I believe that they have the will to do it. I have heard some of their mutterings and comments, and I believe that they have the will—
Lucy Powell (Manchester Central) (Lab/Co-op)
They are not intervening now, though, are they?
Jenny Chapman
No, they are very quiet now.
Willing the ends without the means will cause more resentment and division, rather than less. The new clause would force the Government to assess and report on the gap in development and attainment, which would ensure that progress was measured. Unless that happens, opportunities to intervene will be missed and inequality will be further entrenched.
Mike Kane (Wythenshawe and Sale East) (Lab)
My hon. Friend is making an excellent speech. As the equality gap widens in Tory Britain in 2016, is not the most important decision for a young person to choose their parents in the womb if they want to get on in life?
Jenny Chapman
I dread to think what my kids would say to that.
New clause 2 is a modest request, given the scale of the challenge that we face. It is also something that the Government should be doing anyway. The strategy to narrow the gap with properly co-ordinated policies and regular reporting to Parliament is urgently needed. The measures in the Bill have the potential to diminish the supply and quality of childcare, and we want to know that that gap-widening risk will be closely tracked and acted on by the Government.
New clause 2 encourages the Government to do some of the strategic thinking that we need. If it is adopted, the Government would have carefully to track the take-up of the offer among, say, the 40% most disadvantaged, better to understand the reasons for low take-up, and then they can seek to address them. The key to improving the attainment of the poorest children—high quality early education as opposed simply to childcare—is at risk due to the question marks over funding, which is why I encourage the Government to support the new clause. We know that poorer areas have a higher proportion of providers than the maintained sector, mainly pre-schools and children’s centres. Those providers face particular capacity challenges, and the National Association of Head Teachers has warned that they are unlikely to be able to deliver the increased hours, as they tend to take just two groups of children—one in the morning and one in the afternoon—and physically do not have the space to double their numbers.
Schools have also tended to cross-subsidise the funding of their early years provision from elsewhere in their budgets to ensure quality. The Government have committed £50 million of new capital funding to help with that, thereby acknowledging that there is a problem, but the figure is unlikely to meet the need and may leave some areas without new provision. All this clause does is seek to ensure that this problem does not result in a widening of the attainment gap.
Alex Cunningham
Does my hon. Friend agree that the Minister could win his place in education history by accepting this new clause, which has some great ideas? He believes that those ideas will narrow the attainment gap, and that everything will work. What has he got to fear from the scrutiny associated with this particular clause?
Jenny Chapman
My hon. Friend makes a good point. Not only would the Minister win his place in the history of education teams in Parliament, but it would be the first time ever in Parliament that a Government accepted a new clause tabled by the Opposition on Report. We can live in hope.
The Institute for Fiscal Studies says:
“We have already stumbled a long way in the dark in this policy area. It is time to stop stumbling, shine a light on the policy landscape, and plot an effective route forward.”
If the Government plan to spend £6 billion a year on childcare by 2019-20, I would argue—and I think that they would, too, if they were in opposition—that the risks of an ill-targeted and inefficient system should not be ignored. New clause 2 asks that the Government turn their head to narrowing the gap in early years attainment, and monitor the impact of their policy on this issue to ensure that the nation’s investment is rewarded.
Let me briefly speak to amendment 2, which is a probing amendment and is intended to assess the Government’s appetite for supporting a particular group—in this case, student nurses. This matter arose in Committee, and it is worth flagging up our concern about that particular group and its needs at this time. Members will recall that last week thousands of student nurses and midwives marched through London in protest at plans to scrap training bursaries. Many student nurses already have financial obligations such as mortgages, and many also have children. The Nursing and Midwifery Council requires them to have completed at least 4,600 hours while studying, with half of those in practice. The student nurses work the equivalent of 37 and a half hours a week at least. They work nights, days and weekends. It is very difficult for that particular group to get a part-time job to support dependants while training.
Have the Government made an assessment of the cost of extending the additional entitlement to student nurses with eligible children? I tried to do so, but I do not think that the data exist, so it would be interesting to see whether the Minister has been able to obtain an estimate of the cost. My parents were both nurses, and at the time there were hospital social clubs and a crèche. Obviously that was not recent, but the amendment encourages the Government to work with other Departments to ensure that particular groups—in this case, student nurses—are not disproportionately disadvantaged by a combination of Government policies. I commend new clauses 1 and 2 to the House.
Mr Gyimah
I am grateful for the opportunity to hold this important debate, and I once again welcome the hon. Member for Darlington (Jenny Chapman) to her position. The amendments that have been tabled raise a number of interesting issues, which I shall deal with in turn. Let me say at the outset, however, that extending the 15 hours to 30 hours is primarily a work incentive. That is why the first 15 hours are universal, but the second 15 hours are based mainly on economic eligibility criteria. In judging and evaluating the impact of the policy we should bear in mind the work incentive.
Jenny Chapman
What the Minister says is correct—that is his intention—but does he accept that in new clause 1 our intention is simply to hold him to that and to assess the success of the Bill in delivering that intention?
Mr Gyimah
The hon. Lady is right to ask the questions. However, I shall resist the new clause, and the main reason is that a number of evaluations, which she has asked for, are under way. There are important programmes, as I shall explain, that focus on reducing the gap between disadvantaged children and other children.
New clause 1 asks us to evaluate the impact of the new entitlement for working parents. That is extremely important and I hope that Members will be reassured to know that we have a very strong evidence base about the impact of free early education entitlements. We know, from studies such as the effective pre-school, primary and secondary education project that early education has a significant impact on child outcomes. Children attending high-quality provision for two or three years before school have a seven or eight-month developmental advantage in literacy compared with their peers.
The Department for Education has commissioned another longitudinal study, if the hon. Member for Darlington will listen: the study of early education and development, which follows 8,000 two-year-olds from across England to the end of key stage 1. It looks at how childcare and early education can help to give children the best start in life and at what is important for high-quality childcare provision. The study is being carried out by NatCen Social Research, working with Frontier Economics, the University of Oxford and 4Children, on behalf of the Department.
Mr Gyimah
My hon. Friend makes a good point about a concern felt by some parents. The first 15 hours is universal, but it is voluntary—parents do not have to take it. The previous Government were very mindful of supporting parents who chose to do something else, so we introduced the marriage tax allowance, which supports those parents. In terms of school readiness, the key thing is that the evidence shows that it is helpful for children to attend an early years setting little and often. The universal part of this offer is 15 hours so that those children do not lose out.
Where a family choose to work because that is right for their family circumstances, it is right that the Government respond to the cry from many parents that childcare is too expensive. That is precisely what this Bill does. Rather than widening divisions in society, as the hon. Member for Darlington suggested, this Bill, by enabling more parents to fulfil their aspirations to work, is helping to narrow the economic gap that she mentioned.
Jenny Chapman
The Minister is making quite a bold assertion about the impact of this measure. He does not know that his Bill will narrow the gap, nor does he know that the most disadvantaged children will be able to benefit from the 15 hours, because in fact they will not.
Mr Gyimah
The early years foundation stage profile data show that the gap is already being narrowed. Economically enabling more parents to work if they want to is a positive thing for us to do for the growth of our economy.
Funding has been mentioned several times. This Government have invested a record amount—more than any other—in the early years entitlement and in childcare more broadly, but we also know that there are inefficiencies in the system. For example, not all the money that is allocated is distributed fairly to different local authorities, and not all of it reaches the frontline. We will therefore engage in a comprehensive package of reform by introducing a national funding formula for the early years so that funding is transparently and fairly matched to need, and fairly distributed between different types of provider in different parts of the country.