Childcare Payments Bill

Lord Bishop of Oxford Excerpts

Tuesday 9th December 2014 Lords Chamber

[The Lord Bishop of Sheffield]

My Lords, from these Benches I warmly welcome the Bill, which will provide much needed assistance towards childcare costs for many middle-income and low-income families. I also welcome the careful expansion of the availability of childcare. However, there are two areas which I shall mention briefly where further attention may be needed.

The first concerns the equity between this provision and the provision for families in receipt of universal credit. The Children’s Society estimates that by the time universal credit is fully implemented, around half of children may be living in families in receipt of universal credit. Some of the parents in the statistics quoted by the Minister who want to return to work will certainly be in this category. The challenge of childcare costs, for those returning to part-time and low-paid work, is significant.

My questions relate to equity in the administration of support rather than the quantity. I warmly welcome the intention to develop an easy-to-use online tool to help parents to determine the best help available. How will the Government ensure that universal credit and tax-free childcare complement each other effectively? Will the Government consider making childcare accounts available for families in receipt of universal credit? Will they consider making childcare payments from universal credit on the basis of costs incurred rather than payments made? Will they ensure that families have at least a month to report their childcare costs under universal credit and so receive their full entitlement, which is so important?

My second area has already been mentioned and relates to families with disabled children, where childcare costs can be higher. I warmly welcome the extension of support to parents of disabled children up to age 16. Will the Government consider making this Bill even more effective by providing a higher rate of support through the tax-free childcare scheme for children with disabilities, reflecting the higher general costs of childcare for such parents? These questions are in the context of a warm welcome for the proposals in this Bill.