Funded Childcare

Kit Malthouse Excerpts

Monday 22nd January 2024 Commons Chamber

[David Johnston]

I will try to pick out the questions from the bluster.

On the £120 million, this is a specific issue that affects September 2024 onwards, where we allocated to local authorities 22 weeks of funding because that is the period from September to March. Some then said that they pay 26 weeks to their providers, so we have that money in order that they can provide 26 weeks of funding where that is what they do.

On the funding rates, we announced the funding rates for three and four-year-olds in April last year, and for two-year-olds in November. Given that local authorities have to pass on 95% of the money that we give them, providers have a pretty good idea of what they will receive. However, while the vast majority of authorities will confirm their rates in the coming weeks, a small number leave it until 31 March. We are encouraging them not to do that, and to confirm their rates as early as possible in the same way as the others.

The hon. Lady asked how many families would not be able to access the childcare offer as a result of those two issues. The answer is none. As she knows, we have increased funding rates significantly. Neil Leitch, to whom she referred, is in our stakeholder group, and we value his input. However, I think it will be clear to people watching these exchanges that while we get on with the biggest delivery of childcare ever, the Labour party has no plan, no policy, and no idea how to help families with childcare costs.

[Kit Malthouse (North West Hampshire) (Con)]

The expansion of childcare is extremely welcome, and I have every confidence that the Minister and the excellent team at the Department for Education will deliver this current expansion on time and that the funding will reach all the families who need it. To be fair, however, the Minister is dealing with a system that has become remarkably complicated over the last 15 or 20 years. Would he be interested in discussing with the Chancellor the notion of rolling up all the various funding streams that we provide for childcare, and indeed for family support, and instead of taking money from people in taxes, losing some of the administration and returning it to them in the form of mandated childcare, thus giving every family with children a generous tax break to allow them to make choices for themselves?

[David Johnston]

My right hon. Friend has written some articles, which I have read, proposing that very idea. We think that our present system is the best way of achieving what we want to achieve, but I am of course happy to continue my discussions with him.