Social Security Support for Children

Debate between Kirsty Blackman and Guy Opperman

Wednesday 23rd November 2022 Westminster Hall

[Guy Opperman]

The hon. Lady has obviously pre-read my speech and the comments that I will make, because my fifth point was going to be about childcare. There are a variety of points, which I will address in their totality; I will then try to deal with the specifics, particularly for those on universal credit.

It is patently obvious that for some parents childcare costs present challenges—at the very least—to entering employment. As the father of a 15-and-a-half-week-old child, I can testify to the bitter experience of that. The Government’s 13 hours of free childcare offer entitles all parents of three to four-year-olds in England to 570 hours of free childcare per year, with many children also entitled to the additional 15 hours of free childcare for 38 weeks per year. In addition to helping parents to manage childcare costs and working patterns, free childcare supports children’s development.

I will deal in particular with universal credit and childcare, in respect of which there is a massive role for Members of Parliament. Bluntly, those on universal credit are entitled to a massive amount of childcare, but the take-up of that offer is not good.

[Kirsty Blackman]

They are entitled to 85% of childcare costs—that is absolutely true—but is the Minister aware that the caps set in 2005 have not been uprated, despite the fact that childcare costs have since increased dramatically? Will he take a look at those numbers?

[Guy Opperman]

The Under-Secretary of State for Education, my hon. Friend the Member for East Surrey (Claire Coutinho), and I have had a preliminary meeting. The country wants to try to assist parents who want to go back to work. There is a real desire to address childcare on a long-term basis to ensure that parents who wish to can go back to work.

There are many discussions about all aspects of how we reform, improve and expand childcare in this country. The bit that I control is the ability of somebody on universal credit to access and take childcare. I take the point made by the hon. Member for Airdrie and Shotts and I will go and look at that, but the blunt truth is that the take-up is low. That is the first problem. I am genuinely of the view that there is not sufficient knowledge that individuals on universal credit can claim 85% of their registered childcare costs each month, regardless of the number of hours they work. That is a significant increase on the previous 70% of costs that could be claimed back on legacy benefits.

Parents can claim up to a maximum of £646.35 per month for one child and £1,108.04 per month for two or more children. For families with two or more children, that could be worth over £13,000 a year. I take the hon. Lady’s point on board and will go away and look at that, but that is still £13,000 of subsidised childcare paid for by the state in circumstances. That support is also available to all lone parents and couples who satisfy both the childcare cost and the work conditions to qualify for help with childcare costs.

I am conscious that there is an issue with prepayment of childcare. Various support funds are used up and down the country. In my three-and-a-half week journey of understanding this issue, there seems to be patchy take-up, but I urge all local areas and individual job centres that are assisting parents in this process to ensure that the various support funds available can be provided. It is not a grant, but it is a provision to pay for the childcare deposit. That is definitely happening up and down the country and we should try to encourage and nurture that on an ongoing basis.

I am conscious of time and the desire to deal with a large number of other matters. The autumn statement saw £26 billion in total, as part of further support in 2023-24, to provide around 8 million households on means-tested benefits such as universal credit with payments of up to £900 to help their income stretch further. That is on top of the £37 billion of cost of living support for households in 2022-23. In addition, there are benefits increases in line with September inflation of 10.1%, worth £11 billion, to working-age households and disabled people. There is also the triple lock and support for pensioners.

We will continue to provide support to all households through the energy price guarantee, which caps the price paid for each unit of energy, saving the average UK household £500 next year. For those who require extra support, we are providing an additional £1 billion to help with the cost of household essentials next year, bringing total funding for this support to £2.5 billion since October 2021. In England, that includes an extension to the household support fund backed by £842 million for the 2023-24 financial year. Devolved Administrations will receive £158 million through the Barnett formula. I could go into detail about support for free school meals across England and about the Healthy Start scheme.

I will briefly touch on the funding and powers in Scotland. The hon. Member for Airdrie and Shotts highlighted the extension to the Scottish child payment. The Scotland Act 2016 devolved significant social security and employment support powers to the Scottish Parliament, worth around £3 billion, as well as providing additional powers to create new benefits in areas of devolved responsibility, top up reserved benefits and provide discretionary payments. The UK Government provided the Scottish Government with a record £41 billion per year Barnett-based settlement at the 2021 spending review. That is the largest settlement since devolution. That record settlement provides the Scottish Government with around 25% more funding per person than equivalent UK Government spending in other parts of the UK.

In respect of various other matters, I will endeavour to write to colleagues. To conclude, I welcome today’s debate. I will attempt to work with colleagues on an ongoing basis. It is my job to ensure that there is ongoing support for children through the social security budget that operates throughout the United Kingdom. I commend the hon. Member for Airdrie and Shotts on her first Westminster Hall debate.