Childcare Bill [Lords]
Debate between Jess Phillips and Sam Gyimah(8 years, 11 months ago)
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Mr Gyimah
My hon. Friend makes an excellent point. If central Government make the funding available but we do not have an efficient way of distributing the money to the providers on the frontline, we should not be surprised if those providers then say that they are not seeing the increased funding. That is why it sits alongside a package of reforms to ensure that the money reaches the frontline—the providers who are delivering these high-quality places for parents.
The hon. Member for Darlington touched on the attainment gap, and I now want to turn briefly to new clause 2 on the important issue of attainment and development. Let me reassure hon. Members that the Government want all children to have the best possible start in life and the support that will enable them to achieve their potential. We want high-quality early education and childcare for all children, wherever they live and whatever their background.
The early years foundation stage framework sets the standards that all early years providers must meet to ensure that children learn and develop well and are kept healthy and safe. The framework recognises that children develop and learn in different ways and at different rates. It is an inclusive framework that seeks to provide quality and consistency in all early years settings so that every child makes good progress and no child gets left behind.
Our approach is working. As I mentioned earlier, more children are achieving a good level of development. There have also been improvements in provision for disadvantaged children, for whom high-quality childcare can help to mitigate the risk of falling behind early on. For children with eligibility for free school meals, there has been a 6 percentage point increase in the number achieving a good level of development in 2015 compared with 2014. That is the equivalent of an extra 5,800 children with free school meal eligibility achieving a good level of development, which the whole House should welcome. Furthermore, the gender gap has also continued to narrow. Although girls continue to outperform boys, the gap is narrowing—falling from 16.3 percentage points in 2014 to 15.6 percentage points in 2015.
Children with special educational needs and disabilities are also benefiting from our policies. Early years providers must ensure that the necessary arrangements are in place to support children with SEN or disabilities, and providers delivering funded places must have regard to the SEN code of practice. In preparation for that, we will of course meet our duty, under the Equality Act 2010, to consider the potential impact on groups with protected characteristics. We will also undertake the families test and consider the potential impacts on family relationships.
Finally on the new clauses, I will briefly mention the qualification levels of the early years workforce, which have risen in recent years. Continuing this increase is a key aim of the Government’s workforce strategy, through the introduction of early years educator qualifications, which are equivalent to A-level standard, and early years initial teacher training.
As far as evaluation is concerned, I hope I have reassured the House that a substantial amount of work is already going on to evaluate all our policies in the early education area. [Interruption.] It is a two-year study. If the Labour Front Benchers had been listening to me, rather than chuntering from a sedentary position, they would know that I have discussed it in detail. We are following 8,000 children from the age of two, and we will publish the study’s conclusions.
The hon. Member for Darlington mentioned student nurses and their eligibility for the free entitlement, and I will now turn to amendment 2. The current funding system means that two out of every three people who want to become a nurse are not accepted for training. In 2014, universities were forced to turn down 37,000 nursing applicants. This means that the NHS suffers from a limited supply of nurses, and has to rely on expensive agency nurses and overseas workers. The changes announced by the Chancellor in his autumn statement will place trainee nurses on the same system as all other students, including teachers and doctors. As I outlined in my letter to the hon. Member for North West Durham (Pat Glass), the Department of Health and the Department for Business, Innovation and Skills plan to run a consultation on the detail of the Government’s reforms early this year.
Specifically in relation to support with childcare costs from 2017, students can be reimbursed under the student support regulations for up to 85% of their childcare costs—up to a maximum of £155.24 a week when they have one child and up to £266.15 a week when they have two children. The child must be under 15 years of age, or under 17 years of age when they are registered with special educational needs. In addition, students may also be entitled to the means-tested parent learning allowance of up to £1,573. That recognises some of the additional costs that a student incurs from supporting children while training.
I make it clear that, aside from the support available under student support provisions, parent student nurses, along with all parent students, can and will continue to benefit from the existing 15 hours of free early education for all three and four-year-olds. This is a universal entitlement, regardless of whether or not parents are in work. Parent student nurses may also be entitled to 15 hours of free early education for two-year-old children, depending on their circumstances.
I hope I have reassured the House that although student nurses do not qualify for the second 15 hours, other student support programmes, reimbursing them to the tune of 75% of their childcare costs, will achieve the same objective as that of amendment 2. In addition, those entitled to any tax credits would receive support in that way.
I hope my arguments have reassured hon. Members that we care about the robust evaluation of our policies and that it would be inappropriate to evaluate the impact of the policy according to the timescales in the new clauses. We care about children, and no one wants to get this right more than the Government. We put the Bill into the Queen’s Speech—the first childcare Bill in a Queen’s Speech—and we are determined to get it right. That is why we have put evaluation at the heart of what we are doing. I do not believe that stating that in the Bill in the way drafted in the new clauses—within a year—would actually work.
Jess Phillips (Birmingham, Yardley) (Lab)
Although I am not sure Mr Speaker saw me do so, I almost fell over when I tried to catch his eye earlier. As I am doing dry January, I assure hon. Members that it was not for the usual reasons why people fall over in Parliament. In fact, my heel got caught on my bag.
I rise to speak to amendment 1 in my name, which is about victims of domestic violence. I give credit to my hon. Friend the Member for Great Grimsby (Melanie Onn) for finding another vulnerable group in kinship carers, whose needs may not be well met by the Bill. I would put them in a similar category to the people I am going to talk about. She made some very interesting points. I hope the Minister will take them away and try to understand what it is like for senior citizens to take on children who have been in very traumatic circumstances.
The purpose of the amendment I have tabled is to ask the Government once again to look at the possibility of exempting those fleeing domestic violence from the 16-hour employment threshold. As someone with years of experience working in this field, I know that one of the single biggest barriers to women attending and seeking recovery services is access to childcare. For example it is pretty difficult for a woman to engage in trauma counselling for the repeated rapes she has suffered with a four-year-old running around her feet.
When women flee their homes and seek refuge for them and their children, they are very often forced to give up their jobs as well. That is usually brought about by an anomaly in the benefits system regarding rates of housing benefit in supported accommodation. Similarly, however, many women find that, in order to give up their home and surroundings, they are forced out of work for a period of time, as staying in work becomes totally impossible logistically. A woman who came to my surgery just a few weeks ago—she was living in her car, while her children stayed on relatives’ floors—had to give up her job as a care worker once we were able to place her in a refuge. That is not uncommon.
I ask all Conservative Members to imagine for a second leaving all their belongings, shutting the door of their home, and giving up their job and their financial security. Most women I have met do this for the sake of their children, but imagine the effect of that on a three-year-old. There are only so many times they can be convinced that it is just a big adventure before the difficult reality sets in.
Now, this Bill will tell those children that they will lose their place in nursery too. That might be the only consistent thing left in their chaotic lives. I can see that there is confusion among Government Members. If a woman loses her home and her job and is no longer working 16 hours, she will lose the nursery places she had for her children. I just wanted to clear that up. [Interruption.] Would a Minister like to intervene? They seem confused.
Mr Gyimah
The hon. Lady raised this point in Committee and we debated it extensively. I promised to write to her about the needs of women in refuges. Having looked at the matter, I want to give her an assurance. First, I want to put it on the record that £40 million of extra support is going to women who find themselves in that tragic situation. In terms of childcare, they will get the first 15 hours for their three and four-year-olds, as everyone does. If they are entitled to the extended entitlement and, as a result of their situation, their children have to leave childcare, there will be a grace period of three months, which we have discussed.
Jess Phillips
Yes, that is the word I will use. There is now a firm commitment from the Government.
I was about to say that I recognise that the Bill includes a three-month grace period, which I welcome, but that the children will still have to give up their place in the end. I do not need to say that anymore because the Minister has made his commitment. He has recognised that it is laughable that a woman, after escaping violence, would be tickety-boo, back in another property and gainfully employed after just three months. Unfortunately, the reducing availability of social housing for families to move on to means that many women and children live in refuge for much, much longer than three months. The cuts in local authority spending have meant that newly localised social funds, which are there to help such families, have limited women in respect of where they can and cannot move across local authority boundaries. That leaves them stuck in supported accommodation, even if they are ready and safe to move on.
These children need and deserve consistency. I welcome the Minister’s intervention because he said that he will give it to them.
Mr Gyimah
I wholeheartedly agree with the hon. Lady that such children need consistency and support. To extend the commitment that I have made, I will meet her to discuss how we can do that. We will be consulting on the grace period and I want to get her input on what we can do for this particular group.
Jess Phillips
I was going to say that, whereas other Departments have shown a clear commitment to taking their role in the fight against domestic violence—the Minister has mentioned the £40 million—I had felt, until now, that the record of the Department for Education, with the constant wrangling over personal, social, health and economic education and healthy relationships education, could be described as woeful. I am delighted that the Minister has proven me wrong. As someone who has masses of experience, I would be delighted to meet him and talk about how this policy will work in practice.
I will say no more on the matter, other than to thank the Minister for his commitment.
Question put, That the clause be read a Second time.
Childcare Bill [ Lords ] (Third sitting)
Debate between Jess Phillips and Sam Gyimah(9 years ago)
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Mr Gyimah
Once again, it is a pleasure to serve under your chairmanship, Ms Dorries. At the start of the line-by-line scrutiny of the Bill, I said that there were three aims behind our childcare policy: to enable parents to work more hours; to help parents with the cost of living; and to give children the best start in life with high-quality early education.
Jess Phillips (Birmingham, Yardley) (Lab)
Does the Minister recognise that a mother’s education is the single biggest factor in how well her children go on to achieve? As we are focusing on children’s attainment, does he agree that helping women in education to access this childcare provision would be a step towards one of his three aims?
Mr Gyimah
Obviously helping women in education is a broad aim of the Government, but those are the three objectives of this particular Bill. The amendment addresses the third objective of giving children the best start in life, and I am grateful to hon. Members for tabling it, as it draws attention to the importance of closing the gap in achievement between disadvantaged children and their peers. I am pleased to say that more children, including those in receipt of free school meals, are now achieving a good level of development at the end of the early years foundation stage. In 2015, 66.3% of children achieved a good level of development. That figure was up from 51.7% in 2013. In 2015, 51% of children on free school meals achieved a good level of development compared with 45% in 2014. That is the equivalent of an extra 5,800 children. The gap in achievement between disadvantaged children and other children has narrowed from 18.9 percentage points in 2014 to 17.7 percentage points in 2015, which is welcome news. However, the gap is still too large and the Government are absolutely committed to narrowing it.
Mr Gyimah
The hon. Gentleman is alluding to the announcement we made earlier this week on wrap-around care, which will allow private providers to bid to use a school site to provide care for school-age children during the holidays. So we are already working on that. I will come later to what we can do for children under five.
Local authorities depend on the market to supply childcare places. We want them to work with local providers to transform the market and increase flexible childcare provision for parents with out-of-hours working patterns. It would not be reasonable to place a statutory duty on them to guarantee out-of-hours or holiday provision for every parent who wants it, since their local childcare market may not be able to deliver that.
Returning to the hon. Gentleman’s point about school nurseries, there are a number of local authorities, particularly in the north-east, where the majority of childcare is delivered by sessional providers such as maintained schools or nurseries. A large number of those providers cannot offer out-of-hours or holiday provision. As Lord Sutherland said in the other place, for those providers
“to continue provision outside their normal hours may well stop them operating completely”.—[Official Report, House of Lords, 14 October 2015; Vol. 765, c. 265.]
Placing a duty on local authorities will not change that overnight. It is also important to note that local authorities, rightly, cannot require private providers to deliver the free entitlement. Therefore it is simply not right to give them a legal duty to secure flexible provision for every parent in their area.
In my view, the way to promote flexible provision is to work with local authorities and providers to look for innovative ways to meet the needs of parents, and to encourage new providers to enter the market to give parents more choice. We should encourage provision to respond flexibly to demand. It does not make sense to require every local authority to secure a particular type of provision when parental working patterns and the type of demand for childcare will vary from area to area.
I reassure the Committee that there is already flexibility in the system used for the existing 15-hour entitlement, and we intend to build on that flexibility in delivering the extended entitlement. There is no requirement that free entitlement places can only be in line with school term dates, or during the hours of nine to five.
In fact, the previous Government changed the statutory guidance to enable local authorities to fund providers to allow parents to access places between 7 am and 7 pm, so that parents can drop off their children earlier in the day or collect them later. Providers can also stretch their entitlement across the full year rather than limiting them to term-time only provision, and a number already do that.
The Bill is very carefully drafted at clause 2(1) to say that the free childcare must be available for a period
“equivalent to 30 hours in…38 weeks”
so that the primary framework allows for the stretched offer. Some local authorities are already promoting flexible childcare provision, including Brighton and Hove City Council, where 82% of year-round nurseries offer a stretched entitlement; Blackpool local authority, where nurseries and childminders work in partnership to offer out-of-hours provision, including weekends and evenings; and Bradford Council, which offers a community nanny scheme, providing flexible childcare for lone parents struggling to access work or training. In Tuesday’s discussion of eligibility I mentioned the great work that Swindon Council is doing to offer weekend sessions from January 2016. In addition, we will set up a flexible funding model to support providers to deliver flexible provision to meet the needs of parents.
Although it is great that some local authorities are already delivering flexible provision to meet parents’ needs, I want more local authorities to deliverthe 30-hour entitlement in that way. I have been clear that the extended entitlement needs to support parents to work. We have been working with the Local Government Association to set up an expert local government working group in the new year, to build on existing flexible provision and make the extended entitlement even more flexible.
Jess Phillips
Is there anything to stop private providers just setting off a block of time within their timetable and saying that the free hours can be claimed in that time? That was certainly my experience of what happened under the 15-hour provision. They could say, “You can use your free hours only between nine and five.”
Mr Gyimah
The hon. Lady makes a good point—what sort of restrictions can private providers impose on parents taking the free entitlement? We want providers to deliver this more flexibly. Now that the offer is moving to 30 hours from 15 hours the scope for providers to say, “You can take it only at this time,” is significantly limited, because if a child is taking all of the 30 hours, that is most of the week.
The Department for Education will be working with the Local Government Association to enable the sector to take a leading role in expanding existing provision and responding effectively to emerging demand as the extended offer is rolled out. We will also review the statutory guidance to remove any barriers to the flexible delivery of childcare, such as those the hon. Lady mentioned. We will set out work that local authorities can do to enable parents to take the current entitlement in a pattern of hours that best meets their needs.
Childcare Bill [ Lords ] (Fourth sitting)
Debate between Jess Phillips and Sam Gyimah(9 years ago)
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Mr Gyimah
The new clauses are about special educational needs in the early years setting. The hon. Lady must be congratulated on the ingenious and persistent way in which she has focused our attention throughout the scrutiny of the Bill on children with special educational needs and disabilities. I agree with her that that is the right thing to do as far as the Bill is concerned.
We have heard a lot in this debate about access to the free entitlement for children with special educational needs and disabilities. The hon. Lady’s amendments seek to propose that all childcare providers have access to suitably qualified SEND co-ordinators and to place a requirement on local authorities to produce and maintain a childcare inclusion plan. I agree with her that early identification of additional needs is extremely important. It is central to the SEND reforms, and it includes specific requirements in health to refer children who might have SEND to the local authority, recognising that in the early years, especially before age three, health visitors or GPs can pick up concerns before anyone else.
With that in mind, I reassure Members that we all want childcare that meets the needs of working parents and their children, including those with SEND. It is therefore the Government’s intention to ensure high-quality childcare that meets the needs of all children. We recognise that staff need to have the right skills and knowledge to deliver that care.
The Government continue to support the development of the early years sector with a broader self-improvement education system, to which I alluded during our discussion on an earlier amendment. We invested £5.3 million through our voluntary and community sector grant scheme in 2015-16, of which about £4 million was invested in early years projects to support SEND reform implementation. A number of those programmes deliver SEND training to the early years workforce. In particular, the National Day Nurseries Association’s current SEND champions grant has proved very popular among the workforce.
We have also provided £5 million to support partnerships between teaching schools and PVI providers, which have also enabled good practice in supporting children with SEND. For example, the Solent Teaching School Alliance is delivering support for PVIs that includes a focus on children with SEND. It is leading to improved identification of children and better tracking of their progress towards more aspirational targets.
Obviously, local authorities have a key role to play. As I mentioned, the Children and Families Act 2014 sets out how the needs of children with SEND must be met. As is set out in the code of practice, in order to fulfil their role in identifying and planning for the needs of children with SEND, local authorities should ensure that there is sufficient expertise and experience among local early years providers to support those children.
Local authorities often make use of area SENCOs to provide advice and guidance to early years providers on developing inclusive early learning environments. The area SENCO helps make the links between education, health and social care to facilitate appropriate early provision for children with SEND and their transition to compulsory schooling. A recent SEND reform implementation survey that received responses from 104 local authorities indicated that 78% already have an area SENCO that early years providers can access. We are confident that that number will continue to grow as the reforms are embedded.
I do not believe that the number of area SENCOs needs to be required, as set out in new clause 4. I believe that it would be more appropriate to consider how we can learn from local authorities with area SENCOs and encourage other areas to follow that example, building on the model of the local authorities from which we heard in our recent survey.
As we heard at Tuesday’s session, the early years market is diverse; it is made up mostly of small, single-site private, voluntary and independent institutions. It would be challenging to require every provider to have a suitably qualified member of staff, or a SENCO, as set out in the new clause.
As I have said, we require every provider delivering the early years foundation stage, regardless of their size, to have arrangements in place to support children with special educational needs and disabilities. Under the Children and Families Act, a maintained nursery must ensure that there is a qualified teacher designated as the SENCO in order to ensure the detailed implementation of support for children with SEND. In addition, the EYFS framework requires other early years providers to have arrangements in place for meeting children’s special educational needs. Those in group provision are expected to identify a SENCO. Childminders are encouraged to identify a person to act as SENCO, and childminders who are registered with a childminder agency or who are part of a network may wish to share that role between them.
I recognise that the new clause would allow the Government to set a prescribed size for a childcare provider that must have a SENCO, but I am concerned about the potential perverse incentives that it could create if we placed requirements on different sizes of providers. For example, it could create incentives for a provider not to take more than 49 children if at 50 children the regulations would become more burdensome.
SENCOs are already a valued part of the landscape, but we want to develop and test other innovative ways of meeting the needs of children with SEND, in particular through the early implementer areas, as I have said a number of times. We do not want to prejudge the learning that we will gain from the early implementers, and I hope that the Committee will understand why we do not want to close down other potential options by settling on a single solution now.
New clause 3 seeks to place a requirement on local authorities to produce and maintain a childcare inclusion plan. I recognise that the intention of the hon. Member for North West Durham is to assist disabled children to access a further 15 hours of free childcare under the Bill. As I have stated clearly in Committee, I agree that all families should have access to high-quality, flexible and affordable childcare. I also agree that parents with disabled children should have the same choice and access to high-quality childcare. We want our early years to be inclusive—for children to learn and play together—but I do not agree that the answer is to place a new duty on local authorities to produce and maintain a childcare inclusion plan that sets out a strategy for how disabled children and those with SEN will be assisted to access childcare under the Bill.
The Children and Families Act already requires local authorities to have a local offer, which includes information as to the special educational provision that a local authority expects to be made available to children in its area by relevant childcare providers, and information as to how those providers tailor the childcare on offer to meet the needs of children with SEN. In preparing their local offer, local authorities must consult with the children and young people with SEND and their families to find out what sort of support and services they need. To ensure that the local offer is made available to all, local authorities must publish their offer on the internet and ensure that those families without access to the internet can also see it. The local authority must also tell children and young people and their families how they can find out more about the local offer.
I hope that I have made it clear that I absolutely agree that all eligible children should have access.
Jess Phillips (Birmingham, Yardley) (Lab)
Speaking as quite a sharp-elbowed mum of children with SEN, I did not know that any of what the Minister read out existed, so it is clearly not working. My children have been through all sorts of different provision. Wanting this is a bit like Miss World wanting world peace. If the Government actually want it, why do we not do something about it?
Mr Gyimah
The Children and Families Act which came into force in 2014 was the biggest reform to SEND for 30 years. It is still being embedded in the system and that is precisely my point: we have made significant reforms, which are being embedded. I hope that what I am saying reassures Members. Rather than having another duty on SEND provision for local authorities, let us ensure that the reforms already passed on a cross-party basis become embedded and truly work for children, so that the parents, whether sharp-elbowed or not, may feel reassured that their children will get access to the childcare they need. I therefore hope that the shadow Minister will withdraw her new clauses.
Childcare Bill [ Lords ] (First sitting)
Debate between Jess Phillips and Sam Gyimah(9 years ago)
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Mr Gyimah
The hon. Lady quoted the PSLA’s comments on the childcare review. I believe that its comments were informed by a piece of research done by Ceeda. According to that research, the cost of childcare for three and four-year-olds is £4.53 per hour. The average funding rate announced by the Government, from 2017-18, will be £4.88 per hour. Where is the shortfall?
Jess Phillips
I invite the Minister to go back to the evidence that was given to this Committee. That same evidence states that the consultation undertaken by the DFE to come to the figures that he has outlined will be completely outdated by the time of the 2017 roll-out and does not account for all sorts of other costs that nurseries may face.
Jess Phillips
Yes, but give me a chance to answer one intervention before you make another!
Jess Phillips
The shortfall has been identified by the Pre-school Learning Alliance in its research. I can only work on the evidence that has been given to the Committee. There is already a clear shortfall with the 15-hour provision, which is why nurseries tell us time and again that they use other people’s fees to subsidise their rates. The cost of childcare has increased over the past five years.
Jess Phillips
I agree that we need to take a wholesale look at apprenticeships, training and how to encourage people to go into this area of work. I imagine that helping to raise people’s children is one of the greatest gifts, and we need as many people as possible to go into the sector. Unfortunately, if pay rates remain where they are—care work is one of the reasons for the gender pay gap—and unless nurseries massively increase their costs and training budgets, people’s desire to work in the field will not increase.
Mr Gyimah
I would like to give the hon. Lady some encouragement on some of the questions she asked. The number of providers delivering the three and four-year-old entitlement has increased every year since 2011. In 2015, a total of 43,800 providers did so.
The hon. Lady raised a concern about the workforce. The quality of the workforce continues to rise. Between 2008 and 2013, the proportion of full day care staff with at least a level 3 qualification rose from 75% to 87%, and the proportion with a degree or higher rose from 5% to 13%. I hope she finds that encouraging. The number of places is increasing, and staff qualifications are going up.
Jess Phillips
The idea that the number of places are increasing is interesting. I am sure that some nursery providers that did not previously exist have opened their doors, but I think that some that previously did not offer the Government’s scheme are now doing so. Many nurseries in my area that have always existed suddenly have a big banner outside saying, “Free three and four-year old places here”. There is still a supply and demand issue. In his next intervention on me, will the Minister say what happened in 2013? Why did the number go up before then and then stop in 2013, or do we just not have the figures?
Mr Gyimah
I am encouraged by what the hon. Lady says about nurseries advertising the free entitlement, which she said is so underfunded, and having banners outside trying to attract parents. If it is so underfunded and nurseries are losing money by offering it, why are they so keen to advertise it?
Jess Phillips
Perhaps they did not realise and thought the subsidies were bigger. As I said, I would be delighted if the Minister proved me wrong. However, I can almost guarantee that for the next five years after the roll-out, we will see a higher-than-inflation increase in the cost of childcare for parents of children aged nought to three. I really hope I am wrong, but something will have to give. I do not run a nursery, so I do not know—I am basing my comments on the evidence that has been given to me that there will be a massive shortfall. Maybe I will start a nursery—I like to take on new tasks.
As a parent, I know about the effect of growing demand. This year I was one of the many hundreds of thousands of parents who were told that they could no longer access childcare. There may be an increasing number of places and delight about the figures, the graphs and reports that we read, but the reality is different. I was told I could no longer access the childcare I have accessed for my children for years, because demand outstripped supply. That is happening to people every day, regardless of what the figures say. Supply is not growing to meet demand. I currently have no childcare before school for my children, which has fundamentally changed my family’s working habits. It has meant a reduction in the income of my husband, who is the full-time carer of my children. No chart or table will tell me that is not happening when I know it is—it is happening to me and to many other parents I speak to on the school run.
I want to be sure about the graphs, the funding and schemes that are being outlined. All I am asking for is a review of whether the funding will work. As I have said repeatedly, I want the Minster to prove me wrong. I want a review of whether there has been any rise in the costs of wrap-around childcare for children aged nought to three and those over four, like my children, and of how many women fall out of the labour market when their children are aged nought to three. I want to understand whether the Government have got their figures right.
Mr Gyimah
I have a lot to say, Ms Dorries, and I am grateful for the opportunity to serve under your chairmanship. We have had a long debate on amendment 10. I would like to do three things: provide a bit of context; deal with the amendment and the clause; and address several of the points raised by Opposition Members.
First, on the context, both the Labour and Conservative parties promised to increase free entitlement for three and four-year-olds because we recognise that that will make a difference to parents by helping with the cost of living and enabling them to work more hours. We also know that high-quality childcare makes a big difference to children’s life chances. Both parties share the same objective, and I note that Labour Members supported the Bill on Second Reading.
Both parties can also lay claim to a tradition of making big moves in the childcare sector. The hon. Member for North West Durham talked about the Labour party’s track record. I am proud to say that the Conservative-led Government in the previous Parliament continued that when the free entitlement for three and four-year-olds went up from 12.5 hours to 15 hours. We introduced a new entitlement of 15 hours of early education for disadvantaged two-year-olds. We also introduced the early years pupil premium, which is worth £50 million, so that disadvantaged three and four-year-olds do not fall behind at school. We introduced shared parental leave, which is to be extended to grandparents, and we legislated for tax-free childcare, which means that for every £100 that parents spend on childcare, £20 will come from the taxpayer. That is for parents who are buying additional hours to the existing free entitlement, or who have children younger than three. Parents can use tax-free childcare for children up to the age of 12, and up to 18 in the case of disabled children.
Jess Phillips
I just want to check—partly for my own personal finances—when that tax-free childcare will be available. The Minister says that that has been put in place, but I understand that it is currently not available.
Mr Gyimah
I said that we legislated for that in the previous Parliament. Tax-free childcare will come into effect from 2017. I know the hon. Lady is concerned about the cost of school-based, wrap-around childcare, but she can use tax-free childcare to help to offset the cost of her wrap-around childcare. In addition, parents can get subsidies through childcare tax credits for up to 75% of the cost of childcare, and that figure will be 85% when we move to universal credit. The Bill is part of a package of reforms through which the Government will spend £6 billion in this Parliament to support parents with their childcare.
Jess Phillips
I recognise what the Minister says, but if a report does state otherwise, will he change his mind?
Mr Gyimah
No, I would definitely like to see the report. Of the £1 billion, £300 million is for a significant uplift to the rate paid for two, three and four-year-old entitlements. We have increased the rate not just for the three and four-year-old entitlement, as promised at the election, but for the two-year-old entitlement. The new average hourly rate—we have to be clear about it—is £4.88 for three and four-year-olds and £5.39 for two-year-olds, and the equivalent rate per carer, for three and four-year-olds, is £39. The uplift will apply to all children accessing the free entitlement.
We did not stop there, however. We also announced £50 million of capital funding to help providers who wish to expand and increase the number of places they are able to offer, as well as committing to a fairer funding distribution through the introduction of a national funding formula for early years. Neither of those elements, which are critical to a comprehensive and sustainable system, is mentioned in the clause.
Introducing a fairer funding formula for early years is essential. Current funding for early years varies considerably around the country, enabling some areas to offer parents additional hours of provision above the statutory 15 hours a week. The additional investment is a strong signal of the importance that the Government place on early years, and of our desire to help hard-working parents back to work and help them with the cost of living.
The rate increase is underpinned by the comprehensive review of the cost of childcare that was published on 25 November. The review was based on the best published evidence available, with additional evidence being collected through the review itself. Some 2,000 pieces of evidence from the childcare sector were reviewed, and every major childcare organisation contributed to the review. Childcare providers generously even provided their own profit and loss accounts so that we could identify and understand how their cost base worked. We promised the view at the election, and we have delivered on that promise. It is the most comprehensive bottom-up analysis of the cost of childcare provision in the country, and I have no doubt that hon. Members will agree with the rigorous, evidence-based approach we have taken to the analysis.
On how the review was conducted, it was led by the Department for Education’s chief analyst, who analysed the best published evidence and went the extra mile by collecting additional evidence throughout the review. The review examined the cost of childcare provision at provider level and considered all evidence on the current demand for and supply of childcare places for two, three and four-year-olds, for whom there is free entitlement. It also considered cost pressures that providers will need to meet in future, including the national living wage, and found that there is scope for providers to be more efficient, for example by reducing under-occupancy.
That analysis has allowed us to understand the funding needs of the sector and gain better insight into the characteristics of a diverse market and how it might respond to deliver the entitlement.
Childcare Bill [ Lords ] (Second sitting)
Debate between Jess Phillips and Sam Gyimah(9 years ago)
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Mr Gyimah
I thank the hon. Lady for inviting me to intervene. The system will be checked by HMRC, which will check earnings on a forward-looking quarterly basis. Based on that, parents will be eligible for childcare. That will be done automatically; parents do not need to apply. If parents disagree with the decision that is made, there will be an appeals process about which I will speak in more detail in my speech. We have to remember the fundamental principle mentioned by my hon. Friend the Member for Chippenham—this is about work. Someone needs to earn only £115.20 a week––
The Chair
Order. Interventions must be short. The Minister will have an opportunity to wind up the debate in his speech later. Other Members have opportunities to intervene and make speeches because we are not limited to time. I would be grateful if Members would bear that in mind.
Mr Gyimah
The hon. Gentleman makes a good point about volunteering. We recognise the importance of volunteering, but as I said, the purpose of the extended entitlement is to help working parents with the cost of childcare. The approach we are taking here is consistent with other Government policy. Of course, where a parent or parents are undertaking voluntary work alongside paid employment that meets the minimum income criteria they will be eligible, as I have said, for 30 hours of free childcare. However we are clear that parents solely undertaking voluntary work should not be able to access the extended entitlement.
The issue of parents in full-time education has also been raised. Again, they get the first 15 hours and if they are in the 40% most disadvantaged households, they will get 15 hours of free childcare for their two-year-olds. In addition, the Government already provide support to parents in recognised education courses through discretionary learner support and the loans bursary fund. Students in higher education may be eligible for support through the childcare grant, which offers parents support of up to 85% of their childcare costs up to a maximum of £155.24 a week for one child and £266.15 for two children. Where parents choose to undertake part-time work alongside their studies, and on average earn the equivalent of 16 hours at the national minimum wage or living wage per week, they will also be able to benefit from 30 hours of free childcare. However, we are clear that parents solely undertaking full-time study should not be able to access the extended entitlement.
Jess Phillips
I wonder whether those training to be nurses, who are working now for free in our NHS, will be entitled to the 30 hours of free childcare if they are in full-time nursing training.
Oral Answers to Questions
Debate between Jess Phillips and Sam Gyimah(9 years ago)
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Mr Gyimah
As the Secretary of State said at last week’s London education conference, we recognise just how challenging affordable sites and buildings are in our capital. We will work with local authorities to support our dedicated property team in the Education Funding Agency by identifying any potential sites. When it comes to school buildings and repairs, the Government are creating places and fixing the school roof while the sun is shining. I will of course be happy to meet my hon. Friend.
Jess Phillips (Birmingham, Yardley) (Lab)
Following last week’s devastating report from the Children’s Commissioner about 450,000 children being sexually abused in the past two years, does the Secretary of State still disagree with me and, now, with the Children’s Commissioner that healthy relationships education should be compulsory in all of our schools?