Oral Answers to Questions

Debate between Liz Twist and Nadhim Zahawi

Monday 10th September 2018 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

8. What assessment he has made of the effect of the Government’s policy on funded childcare on the financial viability of childcare settings.

[The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)]

By 2019-20 we will be spending £1 billion extra annually to deliver 30 hours a week of free childcare and pay our higher funding rates. Those rates were based on our review of childcare costs, described as “thorough and wide-ranging” by the National Audit Office. We have commissioned further new research to understand providers’ current costs.

[Liz Twist]

Last Friday I visited Bright Sparks nursery in my constituency, which is rated “outstanding” and is long-established. The staff told me how difficult they are finding it to make ends meet under the new funding regime, and that is borne out by a report by the National Day Nurseries Association. Can the Minister tell us how nurseries are supposed to remain open when facing that shortfall? I am glad to hear that he is looking again at the costs, but I hope it will be a thorough look.

[Nadhim Zahawi]

We continue to monitor the costs and, as I said earlier, we have commissioned further research. The evidence that we currently have shows that the majority of providers are willing and able to deliver the extended entitlement. Some 340,000 children have benefited from 30-hour funding places in the scheme’s first year, so it is certainly a success story, but the hon. Lady is right that we have to monitor what pressures there are.