Childcare Bill [HL]

Lord Storey Excerpts

Wednesday 1st July 2015 Lords Chamber

[Lord Storey (LD)]

My Lords, the noble Lord described the Delegated Powers Committee’s report as vigorous. That is perhaps a little bit of an understatement. It is true that the Minister is a courteous and honourable person. Those who worked with him on the Children and Families Bill know how anxious he is to keep people together and to get agreement on the things that concern us all. This must be true of the Childcare Bill. It is too important to get it wrong. I am a great admirer of the noble Baroness, Lady Eaton. She and I have served together on a number of local government committees. However, I was slightly disappointed with her disingenuous remarks. Had she looked at the list of amendments, she would have seen that another local government stalwart—the noble Baroness, Lady Pinnock—has tabled Amendment 34 on child poverty. Therefore, I ask the Minister: am I right in understanding that these issues will be sorted—to use a common colloquialism—before Report?

[Baroness Fookes (Con)]

My Lords, I hope that the House and the Minister will forgive me if I intervene briefly as the chairman of the regulatory powers committee. I accept that it was a hard-hitting report; none the less, I think that it was a fair one. On the other hand, I welcome my noble friend the Minister’s offer to postpone Report stage, and the various ways in which he is trying to put right what I think must be accepted as a mistake. However, I think that all this could have been avoided if one of two ways had been followed by the Government in this matter—either by introducing a draft Bill, where all the details could have been fleshed out, or by the time-honoured method of introducing a Green Paper for consultation, followed by a White Paper setting out broadly the regulations and Bill that they wanted to see. In those cases, we would have had no worries at all.

--- Later in debate ---

[Baroness Howarth of Breckland (CB)]

First, I thank the Minister for his letter, which raised a number of issues in my mind but which was at least helpful in resolving some others, and say that I support Amendment 1. I believe that I heard the Minister say in his introduction that he had had useful discussions with the noble Baroness, Lady Jones, and that some of the issues that he outlined in his introduction were going to come forward in any event. Despite all the difficulties that have gone before—I am glad I am not taking a political view—this gives us a really good opportunity to take a strategic view of childcare at the moment. I want to be absolutely clear about the who, the how and the what as we go through the amendments. We have a number of amendments, which we will discuss later, about what a working parent is, who in a range of other groups, such as disabled groups, might qualify for extra childcare and how that will be delivered. Will it be on an educational or a childcare basis? The Sutherland report pointed out clearly that there are differences in those two things. What will it be? Who will deliver it? Will it be delivered by childminders as well as within that educational framework?

If we could understand, through these reports, the answers to some of the issues that the amendment moved by the noble Baroness, Lady Jones, raises, we would have a good opportunity to settle funding, cost and consistency issues. Those are among the main difficulties across the country for those trying to access childcare—you only have to move across a county border to find you pay twice as much for childcare as you did in the previous county, which can cause great difficulties, particularly with a mobile workforce. I hope that as we go through the amendments we will get answers to these questions and that we will stop, if you like, the procedural issues—we have made enough of those. We now have some baseline information from the Minister, and maybe we can move forward and get further information so that, by October, we know which parents will qualify and can understand what they will get and where they will get it from.

[Lord Storey]

First, I apologise to your Lordships for not being able to speak at Second Reading. I will speak to Amendments 1, 29 and 38A. I very much agree with the comments of the noble Baronesses, Lady Andrews and Lady Howarth, but am very nervous of phrases such as “value for money” and “best value” in local government. It has to be about what is best in terms of provision. We have seen early years childcare grow over the last two decades. We have seen the Labour Government, the coalition Government and now the Conservative Government all doing something about early years, but we have not really thought about how it is going to look and how we want it to work. I find it concerning, for example, that three-quarters of our nurseries are, as we know, independent. There is nothing wrong with that, but we know that of those independent nurseries only half have a qualified teacher on the staff. We also know that, when there is a qualified teacher, the learning experience for those children is far greater than otherwise. So it has to be about the quality of the provision, for me.

I wonder about the effects of having those extra 15 hours. It might be great for working parents, but how do they affect the child? I will give an example. Schools will have nurseries, where children will go for part-time provision for three hours a day, Monday to Friday. So you can see a system arising now whereby the working parent will take the child to the childminder and the childminder will then take the child to the school nursery for three hours. With the extra 15 hours, they cannot use the school again, because it is a different set of children in the afternoon—not in every case but in most cases—so they will look for a different provider for the afternoon session. Then the child will go back to the childminder to be taken home to the parent. So there will be four different regimes or experiences of childcare, and I really wonder what the effect will be on those children. We need to look closely and calmly not just at the extra resource and provision, which we all welcome, but at how we ensure that there is quality.

[Lord True]

My Lords, this is very much a debate on Amendment 1, and I welcome it—it must not be another Second Reading debate—but the points in the amendment seem to be the essence of good governance. Even if my noble friend is unable to accept the amendment, I am sure that he would be the first to say that government will be constantly reviewing the cost of providing childcare and constantly consulting. I am already grateful for the assurances that I have had that he will consult childcare providers. So in that sense the spirit of it is agreed. Of course, I agree with the noble Lord, Lord Sutherland, that longitudinal and technical study is extremely important. Without going over where we have been before, policy should be founded on consideration of good information and be brought forward in due process, and we are moving towards that.

I have one mild stricture for the noble Baroness, Lady Pinnock. She said that she did not care about what was in the government manifesto. That is a perfectly reasonable personal thought, but I think Mr Lloyd George from her Benches reminded this House that it ought to have a care for the manifesto of a newly elected Government. So I know that she does not oppose this Bill, but I hope that it is not going to be a doctrine that we hear from the Liberal Democrats—that they do not care too much what the elected Government have promised.

I wanted to probe further on regulation. I shall read Hansard very carefully tomorrow. My noble friend does not necessarily have to reply in detail; it may be something that he wants to give further thought to. But on the question of regulations—maybe draft regulations, not the final regulations—the fact is that the wrong regulations under this Bill, and under its wide powers, could drive small, private and voluntary settings out of existence, just as the wrong sort of heat drives our trains off our railways, it seems. That will be one of the concerns that I express as we go through the Bill. It is reasonable for Parliament to want to avoid the wrong sort of regulations on behalf of those whom we represent. Of course, I declare a particular interest as the leader of a local authority that may have to implement those regulations and as the husband of a provider who may have to respond to them. I hope that between now and October my noble friend will see whether we can show a little bit of ankle on the regulations, because some of them could be literally life and death, not only to businesses and voluntary organisations but to the hard-working women, if I may use that phrase —they are predominantly women—who work in these settings, many of them part time. So I would be grateful for the most that he can do to help us on regulations.

In the amendment proposed by the noble Earl, Lord Listowel, of course I agree that value for money is important. Once upon a time, Her Majesty’s Treasury was very interested in value for money before any policy came forward; now it seems that we are looking into affordability once the policy has been published. The value-for-money argument has another aspect to it that I hope we will not lose sight of. I recognise that the Government are committed to this principle. However, this policy, we are told, is going to be funded by taking away benefit from people earning more than £150,000 a year who are provident enough to save for their retirement. That money is going to be given to another set of people, many of them earning more than £150,000 a year, who, you might say, are not provident enough to put a bit of money aside to pay for childcare for their children. That could be a bit of a merry-go-round, to use a phrase that we have heard lately.

As the policy evolves, I hope that we will consider whether the state, the Government and the taxpayers are getting the best value for their money—not only what parents get in terms of providers; that is an issue of quality. This looks potentially—we shall see—to be a very expensive policy with a very substantial dead-weight cost involved in it of paying for a lot of people for something that they pay for already.

I do not expect an answer but I hope that that thought will inform a little the consideration of the implementation of the policy. Having slightly enlarged on the noble Earl’s Amendment 29, I hope that that aspect of value for money will be kept in mind as development of the Bill goes forward.