Oral Answers to Questions
Lucy Powell Excerpts(10 years, 1 month ago)
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Elizabeth Truss
I thank my hon. Friend for that question. We are working with London providers and local authorities to get them to expand the number of places. We have made it easier for private sector providers to expand without planning red tape, and we have made it easier for good and outstanding providers to expand without red tape. We also want to see school nurseries and children’s centres open from 8 am to 6 pm to provide flexible child care.
Lucy Powell (Manchester Central) (Lab/Co-op)
We welcome the fact that finally families will receive some much needed help in meeting their child care costs. However, does the Minister accept that by the time the tax-free scheme comes into effect in 2015, the support that families have already lost plus the increases in costs over this Parliament will mean that the vast majority of families will still be worse off? Can she also tell the House what assessment she has made of the impact on price inflation, given the chronic shortage of places?
Elizabeth Truss
I do not think that the hon. Lady heard my first point, which was that prices are falling in real terms in England for the first time since the Family and Childcare Trust study began. Under Labour, they went up by 50%. On Thursday, I visited the excellent Medlock primary school in her constituency, which offers places to two, three and four-year-olds. Staff told me of their plans to open from 8 until 6 to provide parents with more care. That is happening across the country—[Interruption.] I hear what the hon. Lady says. At present, most nurseries in Manchester are open from 9 to 3. If they opened from 8 to 6, that would be more than 60% extra.
Child Care (London)
Lucy Powell Excerpts(10 years, 1 month ago)
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Nick de Bois (Enfield North) (Con)
It is a pleasure to serve under you, Mr Dobbin.
I congratulate the hon. Member for Lewisham East (Heidi Alexander) on securing this debate. Recently, I have found myself on the same side as her on certain issues; that probably comes as a disappointment to her and it certainly comes as a surprise to me. However, in common with her in this debate, I also profess a limited knowledge of this issue, although at one point my wife and I had four children under the age of five. I rightly stand charged of perhaps not doing enough at that time to learn about this subject; I should know more. However, I am pleased that we are having this debate, not just because it is in the context of London, but because it gives us time to reflect on the challenge and on what the Government are trying to do. It also gives us a chance to reflect on the supply side, which is behind many of the challenges we face. I think that hon. Members would agree that, for too long, it has been difficult for many families to find good, affordable child care.
Without going into detail, I shall touch on why child care services and facilities are so important. They help to nurture the child, enhance their education prospects and support families that want to return to work. Given what I have seen in some parts of my constituency, they also help to support the provision of a safe social environment, including the boundaries that children are sometimes, sadly, missing in an increasing number of dysfunctional family situations. Child care can make a massive contribution.
Particularly in relation to my latter point, I am pleased that the Government are seeking to address the welfare of children from less advantaged families, through a cross-Department—almost holistic—response. Part of that, of course, is access to child care facilities, which is an important part of the jigsaw that I have just put together. Having said that, it is inevitable that as the cost of child care increases, the Government’s response has to focus both on supporting and widening the supply side and on mitigating the costs that we face. Whatever we call the policy, I suspect that all hon. Members can agree that Government financial interventions will be mitigating something. The supply side will be fundamental, long-lasting and will hopefully achieve more.
In fairness, I should say that I am struck by the rather candid comments of Labour’s former Minister for Children, Beverley Hughes, who admitted that they got it wrong, saying that Labour’s approach of pouring money into tax credits
“was probably wrong. We were so keen to stimulate demand from parents”
with fiscal interventions,
“but in retrospect that was such a mammoth task. We ought to have focused on the supply side…then we could have done more and quicker.”
Lucy Powell (Manchester Central) (Lab/Co-op)
The hon. Gentleman makes a good point. The former Minister for Children was making the point that we should have put more emphasis on supply-side funding and less on the demand side. Can he explain why the Government are not learning those lessons and are instead focusing much more on the demand side with their tax-free child care announcement yesterday?
Nick de Bois
I think the hon. Lady will find that we are learning those lessons. I am dealing with that point: my two themes are the supply side and fiscal interventions. However, I will concede that the supply-side challenge in London is particularly difficult. I will also bring to the Minister’s attention some weaknesses in the fiscal interventions that I am experiencing in my constituency now.
It is a current problem. In the interests of fairness, Opposition Members would recognise that the number of child minders halved under their Government, reducing choice and flexibility for parents. There were 98,000 child minders in 1997 and the number fell to 58,000 in 2010. Westminster Hall is generally a constructive environment for debates, but my main point is that this is not a new problem. Costs have been rising above inflation, consistently, since 2003, and since 2009 they have been rising above wages.
Nick de Bois
Few people in my constituency are on an income of £300,000. I ask the right hon. Lady to wait for the end of my speech, because I will point to how the specific targeting of those on very low incomes has had an unforeseen consequence for those on slightly higher, edging towards middle incomes. We need to be careful of the outcome of any intervention and I will address that shortly.
The hon. Member for Lewisham East touched on this point, but I think the most significant part of yesterday’s announcement was that more families will be helped to move off benefits and into employment. As part of that strategy, the Government announced that they will cover 85% of child care costs for some 300,000 families in receipt of universal credit. I would have expected that to be talked about more widely yesterday because it is a fine example of excellent joined-up thinking. In some ways, it answers the question that the right hon. Member for Lewisham, Deptford (Dame Joan Ruddock) has just asked.
We have made money available to help child care providers to support disadvantaged children. Some £50 million will be invested in 2015-16 to offer 15 hours a week of free child care to all three and four-year-olds. That is another welcome intervention. We are helping schools to offer affordable after-school and holiday care. I want to see primary schools open for more hours each day and more weeks each year—I think that will work.
We are also extending free child care to just over 250,000 two-year-olds from low-income families, which kicks in this September, but I want to address the unintended consequences in my constituency. The extension of the scheme to two-year-olds is the pet project of the Deputy Prime Minister, and I would dearly love him to explain the scheme to my constituents who have children at Carterhatch children’s centre in Enfield. About a month ago, parents who have been doing the right thing by working and paying, in some cases for a number of years, for their children to be at Carterhatch children’s centre were, to be frank, brutally informed that their children are no longer welcome because they are fee-paying and the centre’s priority will be those who now qualify for the extended free places for two-year-olds, which from memory includes people on working tax credits of up to £16,900. The centre has said, “We don’t want you because you are paying your way. We are going to focus entirely on those individuals who are now covered by the new Government intervention.” I put it to Members that that is a perverse unintended consequence. People who are working, doing the right thing and paying to get their children into the centre have basically been told that their child can longer attend.
That brings me to the supply side, because being told to find somewhere else is not helpful as there is not much choice in our area. I tackled Enfield council on that, saying, “Look, this is your policy. Have you directed schools on how to implement the Government’s policy?” The council frankly admitted that what happened at Carterhatch is what it would like to see, but says that it is not directing any headmaster to do it; it is entirely the school’s free will. Schools are not working to Government directives, or so I was told by the council an hour ago, but the consequence of intervening in the marketplace is that we have distorted it at the expense of parents who are doing the right thing.
Lucy Powell
Does the hon. Gentleman realise that it is his Government who have taken away the local authority’s role in planning for places? The strategic local commissioning responsibility no longer exists. It is a free-for-all, and it is the Government who took it away.
Nick de Bois
Saying, “It’s your Government’s fault” is making a political point when, with all due respect, it is not the Government’s fault.
Nick de Bois
I will tackle the point. The choice has been made by the head of the school. He is not responding to a central directive from Whitehall or, it appears, from the local education authority. Although the LEA has expressed a preference, it is not a direction. I am highlighting that we now have a situation in which a head teacher finds it more attractive to follow the direction of the Deputy Prime Minister by disregarding parents, many of whom have used the child care centre for a considerable period of time.
Central direction is not the solution, because it is close to the market intervention that we are talking about and will create another dysfunctional consequence somewhere else. Even if we intervene with the best of intentions, it strikes me as odd that the education establishment thinks it is perfectly acceptable to remove some parents in favour of others. That touches on my supply-side argument: if I was a parent who was told that that was what the school had chosen to do, I would look for somewhere else to go because I would not value the school that had made that decision. We therefore have to accept that the weakness on the supply side, which goes back as far as 2003, is at the heart of our problems. That is what we should address, instead of making the wider interventions with which we seem to be obsessed. That is the ultimate solution to the problem.
I apologise for going on for far too long, but I think I have initiated a lively discussion.
Several hon. Members rose—
Lucy Powell (Manchester Central) (Lab/Co-op)
I congratulate my hon. Friend the Member for Lewisham East (Heidi Alexander) on securing this important debate and on its timely nature. It is slightly humbling to have such a wealth of experience on these matters on the Benches behind me. I cannot possibly make a contribution on this important topic that will match those made by so many hon. Members over the years, but I will attempt to do so in my winding-up remarks.
The issues facing families in London are the exacerbated version of what families around the country face. Child care costs in London, as we have heard, are much greater than in the rest of the country. For example, a full-time under-twos’ place in London is on average £2,500 a year more expensive than it is in the rest of the UK. We have also heard that the supply of places in London is much more difficult than in the rest of the country. London has the lowest take-up of child care in the country. Given the extent of the growing economy in London, and the vibrant economy that we have always had here, it surprises me that take-up of child care should be that much lower here.
That has a direct impact on London’s maternal employment rates, which I was surprised to see are the lowest in the UK—there is a big gap in the rates—especially given the number of lone parents and other factors in London. That low rate has an impact on individuals, who are not able to fulfil their lives or provide for their families as they would like, and on the London economy, because so many women are out of the labour market. That has an immediate effect on gender pay gaps. It is shameful, or should be, that last year the gender pay gap increased for the first time in 15 years. Women suffer the pay and status penalty for taking time out from work. That should drive us all forward continuously to address fundamental issues to do with child care costs and provision, especially here in London.
The issues are not new. I will not lay all this at the door of the Government. These are long-standing problems that we have tried to address over many years. We have to recognise, however, that some of them have got more difficult over the past few years than they needed to, or than they were. If I may, I will use some of my time simply to ask the Minister questions about Government policy, since we have the opportunity to do so.
Many Members have talked about the two-year-olds offer and its impact, but the take-up of the offer in London is the worst in the country—only 51% of eligible children take up the offer, compared with 75% of eligible children in the country as a whole. What is the Minister doing about that? She has earmarked some new money— £8 million was announced last year—but what will it be used for, and how does she envisage that that will increase places and capacity in the system? Does she feel that the money is enough?
We heard about some unintended consequences of the two-year-olds offer from the hon. Member for Enfield North (Nick de Bois). We strongly feel that provision and planning of nursery and early years places should be decided locally, and put in place in the context of a longer-term strategy. His Government made a mistake in taking those responsibilities away from local authorities.
The new scheme was announced a year ago, but was revitalised yesterday and in today’s Budget. As others have said, Labour Members welcome any new money or investment in child care, because families are desperate for that help, but we must see this in context. On average, families have lost more than £1,500 a year in child care support over the term of the Government, through loss of tax credits and child benefit. Over the same period, nursery and child care costs have gone up by 30%. Taking those two figures together, families are more than £2,000 a year worse off when it comes to meeting their child care costs than they were in 2010. The scheme and the money are welcome, but they will only get parents back to where they were in 2010.
The issue raised by my right hon. Friend the Member for Dulwich and West Norwood (Dame Tessa Jowell) about the Australian model is critical. Will the Minister tell us today what assessment she or her colleagues in the Treasury or other Departments have made of the scheme and whether it will affect price inflation? Will parents feel the benefit of the scheme in the amount that they have to pay?
It would also be fairer of the Government to be absolutely clear about who will benefit from the full amount of the scheme. An average parent tuning in and out of yesterday’s news coverage might be forgiven for thinking that they were going to get £2,000 a year per child for help with child care costs. In fact, the figure is nothing like that. The Government have allocated £750 million a year to the scheme; they say that 1.9 million families will benefit, although in the small print they estimate that the figure will be nearer 1.3 million. Whatever way we do the maths, even the Government’s own figures suggest that the average amount per family on the scheme is somewhere between £400 and £500 a year, which is a far cry from the £2,000 per child that the broadcasters and newspapers were reporting yesterday. Will the Minister confirm that there is no new money for the scheme since what was announced a year ago, which was £750 million, even though the scheme is being extended? Those are the main points that I ask her to cover today.
On the universal credit announcement, as other colleagues have said, we absolutely welcome the plugging of that major gap in the scheme. We have been calling for that for many months. We have to be realistic, however: families on tax credits have seen a huge reduction in their child care support, from 80% to 70% under this Government, and the increase to 85% will not come in until universal credit comes in. We do not even know when universal credit will come on stream for families; it could be 2017 or 2018, and families will have faced a seven or eight-year gap with significant reductions. Will the Minister tell us what steps are being taken to help those families who are struggling with their costs now? Does she recognise that it was a mistake to reduce the rate from 80% to 70% in the first place?
Ms Buck
We have not talked about the early intervention grant and children’s centres. On take-up and participation in the offer, certainly in my constituency, a number of parents come through the experience of children’s centres, where they learn to deal with child care, build confidence, and develop their labour market skills. The early intervention grant, however, has been cut by 49% in Westminster. The lights are on in our children’s centres, but no one is home—the tumbleweed is blowing through them, and the services have all been closed—and that is unfortunately impacting on other areas of child care.
Lucy Powell
My hon. Friend makes a good point, and I suggest that she tries to secure a separate debate on that issue because of its importance. We welcome yesterday’s announcement, but it needs to be set in context. A remaining real challenge for families is to face these critical issues, which have a real impact on maternal employment rates and the gender pay gap, and that is something the Government should be worried about.
Oral Answers to Questions
Lucy Powell Excerpts(10 years, 3 months ago)
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Michael Gove
The evidence is there in the gap between, for example, the performance of independent fee-paying schools and state schools. If one looks at those children who get the best results at the end of primary school and what happens to those who go on to independent schools and those who stay in the state sector, one sees that at the moment those who go on to independent schools are more likely to get good GCSEs and A-levels. A longer school day is one of the ingredients that we believe will make a difference. Great state school heads—for example, Greg Martin at Durand academy—have already come out and explained why, in their schools, a longer school day definitely helps children, particularly those from disadvantaged backgrounds, to catch up with their peers.
Lucy Powell (Manchester Central) (Lab/Co-op)
I support the Secretary of State’s wish that school nurseries extend hours beyond the statutory 15 hours a week. Is he aware, however, that 21 local authorities, including my own in Manchester, already provide full-time nursery provision, but that this is being put at risk by funding changes from his Department? Is this not another example of his actions failing to match his words?
Michael Gove
I am delighted that so many schools and local authorities provide additional hours, and I work with schools to ensure that more can do so. Where local authorities experience difficulties in ensuring that parents receive the support they need, I want to ask tough questions about the leadership of those local authorities to make sure that they devote the same amount of care, attention and resource to helping disadvantaged children as my Department does.
Oral Answers to Questions
Lucy Powell Excerpts(10 years, 4 months ago)
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Elizabeth Truss
I completely agree with my hon. Friend. We are keen that school nurseries, which typically operate two sessions a day, do it more flexibly to help to support working parents so that they can take up three five-hour slots a week that may fit in with their part-time jobs. At the moment, too many school assets are empty between the hours of 3 pm and 6 pm or before school. We can use them better and get better value for money.
Lucy Powell (Manchester Central) (Lab/Co-op)
Given that under the hon. Lady’s Government the cost of child care has risen by 30%, or five times faster than wages, and by a staggering £304 on average in the past year alone, what help with these costs is she providing to parents during this Parliament?
Elizabeth Truss
The hon. Lady is cherry-picking her statistics. Many studies show that costs have stabilised under this Government, and they are in line with inflation. Her colleague in the House of Lords, Baroness Hughes, admitted that she got it wrong when Labour was in power, when costs went up by £1,000 a year. We have upped the amount of free child care for three and four-year-olds from 12 and a half hours a week to 15 hours a week, supporting hard-working families, but we are not making unfunded promises such as spending the bankers levy 11 times.
Cost of Child Care
Lucy Powell Excerpts(10 years, 5 months ago)
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Lucy Powell (Manchester Central) (Lab/Co-op)
It is a pleasure to be here under your chairmanship, Mr Hood. I had hoped for my first outing as a Front-Bench spokesperson to be in this Chamber, but we had a similar debate in the main Chamber yesterday. I am hoping that today will be slightly less boisterous than some of our exchanges then.
I thank my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) for securing this extremely important debate. I declare, as she did, an interest—in fact, our children play together at the same nursery, here in the House of Commons. Many Members present share such an interest, in that our children are in child care. Over the past few days, we have seen how important the issue is for many of our constituents, as a debate is now raging throughout the country.
For the record, the Labour party is proud of what we achieved on early years during our time in office, but there was still much to do when we left government. There is no silver bullet or panacea to resolve such difficult and complex issues. The point, however, is the direction of travel, which under the Labour Government was positive and in the right direction, but under this Government has turned back. Ensuring that we have good, affordable and flexible child care is not only critical to families and to closing some of those inequality gaps, but to the economy as a whole, as we have heard from Members today. That is why we need to do more about it.
Instead of repeating the arguments that we had yesterday, I want to take the opportunity to discuss further some of the issues that have been mentioned. We heard from my hon. Friend a cogent argument about the triple whammy facing families: rising costs, falling places and cuts to support.
Since 2010, the number of child care places has fallen by more than 35,000. As the Minister agreed yesterday, we now have 2,423 fewer childminders than in 2009, so places are going down under this Government. We had some debate about Labour’s record on childminders, but I want to put on the record at least once a quote from the chief executive of the Professional Association for Childcare and Early Years, when she gave evidence to the Children and Families Bill Committee:
“The statistic…often…quoted…is not one we recognise in terms of the scale of downsizing of registered childminders in the period that the Minister talks about”—
when Labour was in government.
“Pre-Ofsted registration, childminders were managed by local authorities and registered locally”,
and,
“when Ofsted took over that registration, there was a clearout of a lot of data on individuals who were not practising childminders.”––[Official Report, Children and Families Public Bill Committee, 7 March 2013; c. 99, Q208.]
The Minister also asked why we were not discussing school nursery provision, but we are very much doing so. First, Labour policy is to extend nursery provision to three and four-year-olds for 15 hours a week, which is leading to school nurseries being able to offer that to parents. Members present today, such as my right hon. Friend the Member for Wolverhampton South East (Mr McFadden), mentioned the provision of offers for three and four-year-olds in school nurseries. Our policy pledge is about extending that offer further still.
The figures that we were talking about are for childminders and child care places, but if the Minister wishes to take some credit for Labour’s policy for three and four-year-olds, I am happy for her to do so.
Elizabeth Truss
My specific point was that the 35,000 figure cited by the hon. Lady is only that from the Ofsted early years register; there are also nursery places on the schools register for Ofsted, which have not been counted in her numbers. The claim was that there are 1.3 million child care places, but there are actually 2 million, because the two registers were not added together by the Opposition; Labour used only one of the registers in its analysis, so its numbers are wrong.
Lucy Powell
I do not want to get into a stats war with the Minister, but the point is that families up and down this country know that it is getting harder and harder to find childminders and quality early-years provision. As the Minister knows, there is also massively increased demand: the birth rate has been rising by more than 125,000 year on year while the Government have been in office. The sector is therefore facing significantly increased demand as well.
On Sure Start, my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) rightly asked the Minister about the figures. The Department for Education’s own press release from June 2010 stated that there were 3,621 Sure Start centres; recently, the Directgov website showed that there were only 3,053. That is where our figures come from—they are the Minister’s own figures. The point being made today, however, is that the issue is not only about the numbers, but about the services being offered, because many Sure Start centres are being downgraded.
I do not want to confuse matters, because there are two separate issues: Sure Start centres and their provision for early-years intervention work; and Sure Start and child care provision. The Policy Exchange paper showed that, in the poorest areas, child care provision is of the poorest quality—that is why the Sure Start provision of child care is of particular importance. It has focused on some of the most deprived areas, where child care quality is at its worst. That is where it is most needed. We still need Sure Start centres that are able to provide child care.
On the model more broadly, the early intervention grant, which provides the funding for children’s centres, will be halved between 2010 and 2015, going from £3 billion a year to £1.5 billion a year. That is what is having such an impact on the services that Sure Start centres are able to provide to new mums. Those centres play a critical role.
I asked a further question about the Sure Start model yesterday, which I hope the Minister can answer today. It was about another critical component of delivering that essential support for new mums—the role of health visitors. The Prime Minister said before the election that we would have 4,200 new health visitors by 2015. Will the Minister update us today on what progress has been made?
I will skip past some of my other points, but I will repeat the request for an answer to the questions asked by my hon. Friends the Members for Stretford and Urmston (Kate Green) and for Scunthorpe (Nic Dakin) about universal credit and its impact on whether the lowest-income families can meet child care costs. Will the Minister also answer those questions?
The Government response seems to have been to do little in their time in office—[Interruption.] I am sorry, but the Minister’s own flagship policy on child care ratios has now been resoundingly dumped by her colleague; we welcome the extension of the free offer to two-year-olds, but delivery problems remain; and childminder agencies are an unknown quantity and an experiment. We will see how they pan out.
The Government’s main flagship policy now seems to be the tax-free child care policy, but that is too little, too late. The scheme is not coming in until the autumn of 2015, and the people who will benefit most from it will be the highest paid—the more people spend on child care and the more they earn, the more they will benefit. It will do absolutely nothing about cost. In fact, there is evidence to suggest that the scheme—putting so much into the system on the demand side, rather than on the supply side—will lead to costs going up further still. I hope for reassurance from the Minister on that today.
Labour has new policies to extend the three and four-year-old offer from 15 to 25 hours a week and around guaranteeing wrap-around care—welcome policies that are a step in the right direction and will help families to meet the child care crunch that they face. As my right hon. Friend the Member for Wolverhampton South East so eloquently put it, such policies are only steps in the right direction—as a country, we face a big challenge, and we will need bigger and bolder policies to address it. Under this Government, we are going in the wrong direction.
Elizabeth Truss
I am sorry, but I will not be able to take interventions at the moment because I want to try to answer all the many questions hon. Members have raised.
Labour claims that costs have risen by 30% since the Government took office. The study that was mentioned also suggested that costs had risen by 50% under the previous Labour Government. Child care costs have been rising year on year, but other recent studies suggest that those costs are now stabilising and have been flat in real terms for the past two years. Across the political spectrum, we need to analyse why we put the same amount of money into our child care system as countries such as France and Germany but parents in those countries pay a lot less—they pay about half the costs that parents here pay. It is not just about the money that the Government are putting in; it is about the efficiency of provision, competition in the child care market and how that market works. I have spent a lot of time thinking about that as a Minister, and some of my plans are aimed at addressing those specific issues.
Elizabeth Truss
I will briefly, but I want to try to answer all the questions raised.
Lucy Powell
I appreciate that the Minister is being generous in giving way. On the basis of the analysis that she has just given, how does she think that giving a tax-free child care offer will address the costs?
Elizabeth Truss
That offer will help parents to pay towards the costs of child care. Our reforms to encourage more childminders, more school-based care and more private and voluntary nurseries are aimed at expanding supply. Those two policies go hand in hand.
The hon. Member for Houghton and Sunderland South is not right in her analysis that after-school clubs have declined. In fact, our most recent study shows that they have increased by 5%. One of the issues with the extended schools policy that Labour had before the election was that schools could simply put a link to a child care provider on their website, or something like that, and that would count as providing an extended school place; the school had ticked the box, but there was not really any all-day provision. We are working on aligning requirements during the school day and afterwards, as well as making it easier for schools to collaborate with outside providers, so that they can provide real care on the school site.
It is important that schools are encouraged to use their assets better. It helps children to learn more and supports working parents. We are working hard to encourage more schools to do that. I am pleased to say that, for example, the Harris academy chain has agreed that all its new primary schools will have a school day of 8 am to 6 pm. We need to make provision in a sustainable way that enables schools to mix and match with their school day, so that children have extra learning and extra opportunities for creativity, sports and after-school activities. We are keen to encourage that approach.
A lot of claims have been made about children’s centres. As I said in the debate in the House yesterday, the figures on the Department for Education website are about the management structures of children’s centres. There have been only 45 outright closures. A lot of management structures have been merged but with the centres remaining open. In fact, a record number of parents are using children’s centres—over 1 million this year. That shows the success of those centres.
I wanted to respond briefly to the excellent comments that the right hon. Member for Wolverhampton South East (Mr McFadden), the hon. Members for Scunthorpe (Nic Dakin) and for Newcastle upon Tyne North (Catherine McKinnell) and my hon. Friend the Member for Suffolk Coastal (Dr Coffey) all made about the importance of quality in early-years provision. I could not agree more. We need more highly qualified people in that area. That is why we have developed the early-years educator qualification and are offering bursaries this year for early-years educators—that is, young people with good qualifications who wish to enter the professions of child care and early-years education. We have also matched the entry requirements for early-years teachers to those for teachers. This year we have seen an increase of 25% in registrations on our early-years teacher course because of the higher profile that it has had. That will encourage more good people into early-years education.
This year, we have also started Teach First for early-years provision. For the first time, we have high-quality graduates going into the Teach First programme and working with three and four-year-olds. Some will be working with two-year-olds as well, as those places are rolled out in schools. For example, starting in January, the Oasis academy in Hadley is offering 40 places for two-year-olds with a Teach First early-years teacher. Exciting things are happening in schools to get highly qualified people working with our youngest children. Of course, that is being done in an age-appropriate way; when I visited the class of two-year-olds based there already, they were having their feet painted then running around, and doing other things like that. It is certainly not about two-year-olds studying trigonometry. Some of Baroness Morgan’s comments on the matter have been misinterpreted: the aim is to develop early language skills.
The Opposition have proposals on child care places for three and four-year-olds. My hon. Friend the Member for Norwich North covered those proposals well when she said that the Opposition have already spent the bank levy 11 times. There is no magic money tree for policies such as that one. We have to make sure that we use our existing assets better. We are using schools better and giving new planning freedoms, so that shops and offices can be converted into new nurseries.
We also particularly want to see a revival in the number of childminders. I agree with the hon. Member for Manchester Central (Lucy Powell) that we need more high-quality childminders. One issue is that new people have not been joining the childminding profession and the average age within it is gradually rising. We need good ways to attract new people into childminding. Childminding agencies are one of the ways in which we will be able to do that. The hon. Lady will be interested to hear that we are working on involving children’s centres in our attempts to increase childminder numbers, because we think those centres can help to provide a network and training for childminders. We must also make sure that we use nursery facilities and school nursery facilities better.
The hon. Member for Scunthorpe asked a lot of questions about universal credit. I will reply in writing to him, as I do not think I will be able to answer them in the 15 seconds I have left to speak. But there is a lot of common ground in this debate, and I am happy to share more of the figures and details on this matter with the Opposition to make sure that we are debating on the same terms.
Child Care
Lucy Powell Excerpts(10 years, 5 months ago)
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Elizabeth Truss
I thank my hon. Friend for his point about children’s centres, which have been a massive success under this Government. Record numbers of parents are using them, we have improved them by focusing them on outcomes and they are really achieving.
Elizabeth Truss
I thank my hon. Friend for that point, which illustrates the problem with the child care voucher system.
Let me further point out to Labour Members that in the ’80s and ’90s, when we had a working mother in charge of our country, England was ahead in respect of maternal employment, but we fell behind other countries such as France and Germany under Labour’s watch. Maternal employment rates are rapidly rising under this Government. As Edmund Burke pointed out—the shadow Education Secretary is clearly a big fan—“those who don’t know history are doomed to repeat it”, and if he has not learnt the lessons that people in the previous Labour Government learnt at the time, he will fail, should he ever get the opportunity to be in office. That is why we are reforming the child care system: we are reforming the hopeless legacy that Labour left.
The signs are that what we are doing is working. We are seeing prices stabilising, more places being made available in school nurseries and a revival in childminding. We want parents to have a good choice of options, including nurseries, schools, childminders and children staying at home with parents, or a combination of those. We are introducing much simpler funding and creating a regulatory structure to support modern working parents.
We are determined to reverse the decline in the number of childminders. From this September, good and outstanding childminders will be able automatically to access funding for early education places for two, three and four-year-olds. That means that an additional 28,000 childminders will automatically be funded. I think that addresses the point raised by the hon. Member for Hackney South and Shoreditch (Meg Hillier) about ensuring high-quality childminding.
Lucy Powell
Perhaps the hon. Lady will explain why there are 2,423 fewer childminders than there were in 2009.
Elizabeth Truss
That is a continuation of the fall in the number of childminders under Labour. We have reversed the policy, starting this September, and the Department for Education is already getting a lot of positive calls from childminders who are keen to offer early education places. There is a great deal of support for that; it helps parents to combine their child care and early education requirements. From this September, we are trialling childminder agencies, which will enable more childminders to join the profession, and they will be fully up and running in September 2014. They will provide training and support, and will be an easy way for parents to access home-based care. We are at the beginning of making significant changes to the way childminders are regarded in our system. What we want to see is an increase in independent childminders and more agency childminders, as well.
We want to expand the level of school-based care, too. As opposed to Labour’s child care mirage, we are allowing real schools to offer real facilities. We are encouraging schools to use their nursery facilities to offer full-time day care rather than just be open for part of the day. We are allowing schools automatically to register two-year-olds, and I saw some brilliant provision for two-year-olds at the Oasis school in Hadley, which opened in January.
We are seeing 8-to-6 schools blossoming. The Norwich free school has a squirrels club, which means it is open from 8 am to 6 pm, 51 weeks a year. I know that the shadow Education Secretary thinks that free schools are a “dangerous ideological experiment”, but I think schools like the Norwich free school are giving hard-working parents the support that they need.
Another example is the Harris chain of academies, which has promised that every new school it opens will operate on an 8-to-6 basis. I am hugely in favour of 8-to-6 provision. It supports working families and helps to increase children’s attainment, but we must do that in a way that is realistic and sustainable for schools. That means making the necessary regulatory changes, aligning the requirements after the school day from within the school day and making it easier for schools to collaborate with outside providers. We do not get anywhere by making false promises that cannot be realised. We are also reforming child care funding so that parents see more of their money, rather than see it wasted. This means that all working parents will get up to £1,200 per child towards child care costs and the provision of 15 hours for three and four-year-olds.
All that is in the context of what the Government are doing to help families with the cost of living: a £705 income tax cut, thanks to our increases in the personal allowance; a £1,000 saving on mortgages because rates have been kept low; £364 saved on petrol for those who top up their cars once a week; and £210 saved thanks to our council tax freeze. This Government have real policies, helping real working parents to manage their lives—not the dodgy numbers, unfunded promises and gimmicks we have seen from the Labour party today.
Lucy Powell (Manchester Central) (Lab/Co-op)
I am grateful to the many colleagues across the House, especially so many male colleagues, who have spoken in this important debate. This is my first outing at the Dispatch Box, and I am absolutely delighted to be winding up on an issue of such importance to so many families across the country.
Labour has a proud record on child care. It was the Labour Government who put child care on the political map and oversaw a revolution in child care provision. My hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier) gave a passionate account of our record. Ensuring that we have good, affordable and flexible child care is critical not only for families facing a cost of living crisis, but for the economy as a whole, as my hon. Friend the Member for Leicester South (Jonathan Ashworth) rightly said.
Unfortunately, things are going backwards under this Government. They are presiding over a child care crunch and failing to support families in work. Under this Government we have seen a child care triple whammy of rising costs, falling places and cuts in support to help parents. Since 2010 the number of child care places has fallen by over 35,000, including 2,423 fewer childminders on the Minister’s watch, all at a time when a rising birth rate is putting greater demand on the system. The failure to supply enough places is impacting on costs for families. The problem of insufficient child care supply is hurting the economy and making balancing work and family life a nightmare for parents.
Many Members have spoken about cuts to their local Sure Start centre. The Government’s own figures show that there are now 578 fewer centres than there were in 2010. That figure is calculated from the Government’s own publicly available records, and I must say that it resonates much more with what we hear is happening on the ground. Let us take the Prime Minister’s back yard as an example. Of the 44 centres in Oxfordshire, 37 are due to close. He once famously said that he would back Sure Start, but for many in his constituency that is yet another broken promise.
I agree with the hon. Member for South Northamptonshire (Andrea Leadsom)—I have a great deal of respect for her and for the work she has done on early intervention—that the issue is not just about the fabric of the buildings; it is also about capacity. I wonder whether Ministers can tell us what progress is being made in increasing the number of health visitors by 4,200 by 2015, which is critical in delivering the Sure Start model.
The crisis in places is leading to price hikes that are making it increasingly unsustainable for parents to make ends meet, as the very powerful account from my hon. Friend the Member for Barrow and Furness (John Woodcock) made clear.
Mr David Ward (Bradford East) (LD)
Is the hon. Lady aware that Naomi Eisenstadt, who can be regarded as the mother of Sure Start, told the Education Committee that there were too many Sure Start centres and that phase 3 was spreading them far too thinly?
Lucy Powell
I was not aware of her comments, but I completely disagree. As hon. Members have said, this is a very popular service that people raise with us on the doorstep, unlike many other Government policies.
Lucy Powell
I will plough on and give way later.
Under this Government, average weekly part-time nursery costs have increased by 30%. Put another way, child care costs have risen five times faster than wages. In the past year alone, they have risen at more than double the rate of inflation. It is typical of the Government to pretend that things are going well when the reality is that many parents are finding it an incredible struggle to find and afford the child care they need. On top of the crisis in places and hikes in costs, parents have also seen their support fall. Families with two children have experienced a reduction of about £1,500 a year in tax credits, hitting low-income families the hardest. At the time of the 2010 spending review, the Office for Budget Responsibility warned the Government that cuts to child care support would have a negative impact, saying that they would
“affect the hours worked and participation in the labour market”.
Yet the Government have taken no notice and parents face an increasingly difficult child care crunch.
Lucy Powell
I am going to make some progress.
Let me turn to the Government’s response. They may have deleted reference to it from their website, but the Prime Minister once promised that they would be
“the most family-friendly Government…ever”.
Yet they have wasted three years doing very little. The Minister’s flagship agenda on ratios has been abandoned; the nursery offer for disadvantaged two-year-olds is being met with delivery problems; and their tax break scheme is too little, too late and benefits the richest the most. On child care ratios, the Deputy Prime Minister agreed with us that changing ratios could even increase prices. He said that the evidence was “overwhelmingly against” changing the rules on ratios, and went on to say:
“I cannot ask parents to accept such a controversial change with no real guarantee it will save them money—in fact it could cost them more.”
While we welcome extra support for disadvantaged two-year-olds, one in three councils tell us that they do not have enough places to meet this policy.
Childminder agencies are up in the air, with no clarity about how they will work or what they will do. The Minister is running 20 pilots across the country. So far, we know that at least two of those pilots will charge, although we do not know who will bear the cost. Will Ministers give us a guarantee that childminder agencies will not push up prices for parents?
The Government’s tax-free child care policy is too little, too late for parents. The extra investment in child care the Government are promising is dwarfed by the £7 billion a year of cuts they have already made for families with children. The scheme does not start until 2015, and it excludes families with children over the age of five. It benefits families earning up to £300,000 a year, helping the richest the most while leaving low and middle-income families struggling to make work pay, particularly for second earners. This policy will do nothing about costs.
By contrast, Labour has a plan to tackle the child care crunch. Our policies will make a real difference to mums and dads, get our economy moving, and help parents to tackle the logistical nightmare they face. As my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) rightly pointed out, seven out of 10 mums said they would work were it not for the high costs of child care. Expensive child care is acting as a drag on our economy. If our employment rate for mothers moved up to the average of the world’s top five nations, 320,000 more women would have jobs and tax receipts would rise by £1.7 billion a year. The Government gloat about their record, but most of the jobs they have created for mothers returning to work are part-time, low-paid jobs. Over 1 million of those people want to return to full-time work, but the full-time jobs do not exist.
Labour Members take the child care crunch seriously; we are not as complacent as Government Members. We would expand free child care for three and four-year-olds from 15 to 25 hours per week for working parents. That is worth over £1,500 a year. This is a fully costed Labour commitment. We would pay for this policy by ensuring that the banks pay their fair share, increasing the bank levy to an extra £800 million a year.
For school-aged children, many parents increasingly struggle to find decent before and after-school child care. The Government abandoned our extended schools programme. We will set down in law a guarantee that parents can access wraparound child care through their local school if they want it. This will stimulate innovation and collaboration to meet the logistical nightmare described by Members today.
Child care is at the heart of the cost of living crisis for many families. While parents cry out for action from this Government, all we have seen is in-fighting and prevarication while costs have soared and provision fallen. Our offer of 25 hours free child care for working parents of three and four-year-olds will make a real difference to families struggling to make ends meet. I hope colleagues on both sides of the House will support our motion.
Oral Answers to Questions
Lucy Powell Excerpts(10 years, 6 months ago)
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Elizabeth Truss
I thank my hon. Friend for his question. Unfortunately, the number of childminders halved under the previous Government. We are determined to see the number increase. We are allowing all good and outstanding childminders to offer early education. We are also enabling the establishment of childminding agencies, which will be a one-stop shop for new childminders who want to join the professions and will enable parents to find the home-based care that they want for their children.
Lucy Powell (Manchester Central) (Lab/Co-op)
The truth is that under the hon. Lady’s Government, the number of child care places has fallen. As a result, the costs are going up. Families who are already struggling to make ends meet cannot afford to work. When will she get a grip of the child care provision for two-year-olds and older children and tackle the child care crisis that is facing families across the country?
Elizabeth Truss
First, I welcome the shadow Minister to her new position and congratulate her on her well deserved promotion. I am delighted to be working with her on this issue. As I have pointed out, we reported today that 92,000 two-year-olds are in early education places. That compares with 20,000 two-year-olds in 2010. This Government have made massive progress.
Oral Answers to Questions
Lucy Powell Excerpts(11 years ago)
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Michael Gove
My hon. Friend is absolutely right. No young person can confidently take their place in the world of work unless they are secure in literacy and numeracy. That means having secured a GCSE equivalent or better.
Lucy Powell (Manchester Central) (Lab/Co-op)
Does the Secretary of State agree that teaching assistants play a vital role in raising standards in numeracy and literacy in many of our schools, especially those facing the most challenging circumstances? Can he therefore assure me that teaching assistants will not be the next target of his ever more regressive education policy?
Michael Gove
The only target for our education policy is to ensure that all children have a chance to succeed. Of course it is the case that teaching assistants and others can play a part, but the single most important person is the teacher. We need to make sure that the changes we have made to attract more talented people into teaching, building on the work done under the last Labour Government, continues.
Children and Families Bill
Lucy Powell Excerpts(11 years, 2 months ago)
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Lucy Powell (Manchester Central) (Lab/Co-op)
It is a pleasure to follow the hon. Member for Blackpool North and Cleveleys (Paul Maynard), who raised several important issues that I hope will be considered.
This is an important Bill that will impact on children and their parents—on how families function and how the state supports them in so doing. I support many aspects of the Bill and the spirit of this debate, which has been conducted in a very comradely fashion. Some of the Bill received pre-legislative scrutiny, and it is much better for that. However, there is concern inside and outside the House about some of the proposed changes, particularly to child care, that are being foisted on a sector that is fairly united in its opposition to them. It is therefore disappointing that so much of that aspect did not go to consultation before the Bill came before us.
For many families in the current climate, life is tough and getting tougher as they are paying the price for this Government’s failed austerity drive, and the Bill does little to alleviate the pressure on them. However, I raised a number of these issues in a recent Adjournment debate, so I will not go into them now.
Reform of the adoption system is welcome, especially if it means that more children can be placed with a loving family more quickly. However, as always seems to be the case with this Government, progress comes with a price tag. I am concerned about local authorities such as my home authority, Manchester, which will lose 44% of its early intervention grant to help to pay for these adoption changes. Cutting the early intervention grant by £150 million a year—not increasing it, as the Minister stated—to pay for adoption changes is more than robbing Peter to pay Paul: it is counter-productive.
Mr Timpson
I hope that the hon. Lady heard me refer to the adoption reform grant, which was recently made available to local authorities to the tune of £150 million to bring about the reform of the adoption system that we need. That money is being specifically targeted to bring about the changes that she wants to see.
Lucy Powell
I thank the Minister for clarifying that, but he might want to refer to his Department’s own website, which says that the money for these adoption changes is coming from a cut to the early intervention grant. If he wants to bring forward other changes, I am sure that all Labour Members would welcome that.
Early intervention work with families prevents them from entering the care system in the first place, saving money for local authorities and the state. The Government are in danger of failing the early intervention test and I know that my hon. Friend the Member for Nottingham North (Mr Allen) will continue to hound them on that issue. I add my voice to his efforts on behalf of vulnerable children and families in my constituency.
I am also worried, given the context of this debate, about the safeguarding of looked-after children. The Bill is a missed opportunity. The Government need to do more to shore up safeguarding capacity in the system, particularly given the massive cuts to local government, and social workers need to be given more support to carry out their duties and to safeguard our children.
Catherine McKinnell
My hon. Friend is making a compelling argument. The Minister seems to be shaking his head at what she is saying. I have visited local Sure Start centres in my constituency and they are all earmarked for closure in 2016. Does my hon. Friend share their concern and mine about the capacity to safeguard children without that network of centres?
Lucy Powell
I agree with my hon. Friend. In addition, my local authority in Manchester is experiencing a huge cut to its children’s services budget, which is having a massive impact on how the local council provides for children in care. That is particularly worrying.
As I said in my recent Adjournment debate on child care, the child-care crisis is one of the most fundamental issues facing families today. Part 4 of the Bill relates to child care and many elements have been met by a chorus of disapproval. Childminder organisations have welcomed the changes to allow Ofsted to charge for early reinspection at the request of the provider, but there is deep concern at opposition to plans to create new childminder agencies. Providers, the third sector, parents and the Government’s own advisers also have deep reservations about measures to change child-care ratios. Indeed, an unpublished report being sat on by the Secretary of State apparently says that changes to ratios will lead to a deterioration in the quality of care and will not help parents reduce their costs. I have previously asked for that report to be published and I repeat that request tonight. The Minister is in danger of driving down quality while costs balloon.
There are many concerns about the proposed childminder agency changes, and I echo those raised earlier by my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier). Childminders are concerned that agencies could charge them high fees for registering and that plans for Ofsted to cease inspecting agency-registered childminders could confuse parents. Indeed, the Pre-School Learning Alliance has questioned why the Government would create another layer of bureaucracy that will see many parents and childminders pay more while duplicating the work of several organisations.
I am also concerned about plans to remove the existing duty on local authorities to assess the sufficiency of child care in their area. I have spoken before about the child-care crisis facing families hit by the triple whammy, including a reduction in the number of places. Indeed, my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) has highlighted the closure of Sure Start centres in some parts of the country and my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) also raised that point earlier. More than 400 centres have been lost since this Government took office and 4Children has highlighted that 55% of children’s centres no longer provide any on-site child care, while 50% of those that still do report that those places are massively over-subscribed.
Sufficient child care is a prerequisite for parents—mainly mothers—returning to work. Removing the duty on local authorities to ensure sufficient child care will not help parents who are trying to get back into the workplace. It is a backward step that sends the wrong message to families who struggle to find the right child care.
Involving fathers more in bringing up their children is important and the Government’s proposals for sharing leave are positive, provided that safeguards are in place for women. Indeed, there are still many issues to resolve for women to achieve equality in the labour market, especially returning mothers. I welcome the move to extend the right to request flexible working. It is a further important step to ensure that work for parents pays and it builds on the revolution in family-friendly practices introduced by the previous Labour Government.
Given the unprecedented pressures faced by parents and carers today, it is important that we create a system where families and individuals are able to manage home and work life for the economy as well as for themselves. However, I am not convinced that watering down guarantees for employees, with provisions being transferred from statutes to a code of practice, is the best way to highlight the importance of flexible working for family life.
The Government say that this Bill is about supporting vulnerable and disadvantaged children and families. However, as my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) has said, one group is conspicuous by its absence. Young carers do an amazing job caring for relatives such as parents, siblings or grandparents who have a disability or a mental health issue or who suffer from substance misuse. Although new rights for adult carers are proceeding in the draft Care and Support Bill, the Children and Families Bill does not include equivalent provisions for young carers. Many are concerned that this is a missed opportunity. The Bill is a key opportunity to consolidate and simplify the law for young carers and to provide them with rights equivalent to those given to adults. I hope that the Government will take note of the many representations that are being made on the issue and introduce proposals to ensure that young carers will be covered by the Bill. I look forward to debating the Bill further in Committee.
Child Care
Lucy Powell Excerpts(11 years, 2 months ago)
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Lucy Powell (Manchester Central) (Lab/Co-op)
Thank you, Mr Deputy Speaker, for granting this debate on the important subject of future child care policy. As a pregnant mum, I am only sorry that this debate has ended up at the slightly non-family-friendly time of 9.32 pm, but that should not take away from the importance of the issue and the child care crisis facing many families in my constituency and across Britain today. I wanted to bring this matter to the Floor of the House as the Government have made several important announcements on this issue that they have yet to bring it to the House.
Why is debate so important now? First, families are being hit by a triple whammy of the Government’s making: rising costs of child care; reduction in financial support; and, for many, a financial disincentive to work. I will say more about those issues shortly.
Secondly, not only were the Government’s recent announcements on changes to child care regulation—a loosening of ratios between carers and children, and a greater requirement for qualifications—not brought to the House for debate, they have been widely derided by parents and providers and are confused and dangerous. What is more, there is little evidence that those proposals will have any impact on costs whatsoever.
Thirdly, for many weeks now we have read in the papers and heard from Ministers—not least in the mid-term relaunch of the coalition by the Prime Minister and Deputy Prime Minister—about a new package of financial support for parents to help to meet the costs of child care, yet these proposals raise many questions. I would like to put them to the Minister this evening.
Finally, I would like to begin a broader debate—it is an important one for this House to have—about what the shape of future child care policy should be. It is vital to the economic future of the country that we enable as many women as possible—and, in some cases, men—to return to work at the level and pay they were receiving before having children. Not only would that pay for itself, but there would be wider social benefits to society from more early years development.
First, let me address the crisis currently facing the majority of families—a crisis of this Government’s own making. It is a triple whammy. Families with small children are seeing the costs of child care soar. Recent reports suggest that fees have gone up by 6% in the last year. Costs are set to increase further with the severe reduction in available places owing to this Government’s slashing of funding. Some 401 Sure Start centres have closed since the Government came to office, despite the Prime Minister’s pledge to “back Sure Start” during the election. Many more, such as those in my constituency, have ceased to offer any day-care provision at all. In addition, cuts to local authorities’ early years budgets have meant school nursery places falling. The choice for families has dropped greatly and, with the shortage of supply, costs are going up and up. On top of that, the Government are slashing financial support for most families, especially those on low or middle incomes. For those on the lowest incomes, the maximum allowance of child care costs that can be claimed through tax credits has been reduced from 80% to 70%.
Jim Shannon (Strangford) (DUP)
I thank the hon. Lady for bringing this important issue to the House. Not everyone can call on grandparents, uncles, aunts or other family members to provide care—that is true right across the United Kingdom, including in my constituency of Strangford—hence the importance of the child care systems that are already in place. Does that not underline the point that an extra tax allowance should be available for those who are working, to enable them to take full advantage of child care services?
Lucy Powell
I thank the hon. Gentleman for that. It is a good point that many people rely on paid child care, not the support of their families, which is why this evening’s debate is so important.
The allowance of child care costs that can be claimed through tax credits has been reduced from 80% to 70%, losing a family with two children £30 a week or £1,560 a year. With the introduction of universal credit in April, things are set to get even worse for the lowest-paid families. A recent report by the Children’s Society, “The Parent Trap”, found that the lowest-income working families will have to pay up to seven and half times as much towards their child care costs under universal credit, leaving many unable to continue working. Over the coming years, the 1% uprating of tax credits and maternity pay will leave all recipients worse off in real terms. Many middle-income families have seen tax credits cut completely or their child benefit cut.
The third element of the triple whammy for families is that the crisis is creating disincentives either to work or to work more. Moreover, the introduction of universal credit builds in even greater disincentives, especially for lone parents. A recent report by the Resolution Foundation, “Counting the Costs of Childcare”, found that for lower to middle-income families, the extra income generated by a second earner is almost entirely lost on child care costs, leaving lower or middle-income-earning households no better off in work than out of work. That just cannot be right. With the introduction of universal credit, Barnardo’s has calculated that a lone parent family—with two pre-school children—working 16 hours a week would be zero pounds—yes, zero pounds—better off if they increased their hours to full time. This is a perverse situation that needs looking at urgently. This is a real crisis for many families—who in turn are opting to work fewer hours or not work at all, which in turn is costing our economy and costing the taxpayer—and it is a crisis of this Government’s making.
One of the Government’s flagship policies to address the triple whammy was announced a couple of weeks ago, yet the Minister’s plans to loosen the ratios of childminders to children—to 1:4 for under-twos and 1:6 for over-twos—have been met with anger and derision by parents and providers. What is more, there is little or no evidence that these plans will have any impact on costs at all, yet there is evidence—especially from France, which the Minister is so keen to look to—of quality being compromised. Parents are overwhelmingly against these proposals. A recent survey by Mumsnet found that 94% are happy with the current arrangements. I have been contacted by many anxious parents. If parents are not happy with the quality and care options they have, they are more likely to opt to stay at home and look after the children themselves.
Providers are also united in their opposition to these proposals. Some 94% of respondents to a Pre-school Learning Alliance survey of members said that the quality of care would be compromised if ratios were relaxed in this way. I have been contacted by many working in the sector. Their comments are damning. Neil Leitch from the Pre-school Learning Alliance said:
“We are absolutely appalled by this fixation to alter ratios...This is a recipe for disaster.”
June O’Sullivan, chief executive of the London Early Years Foundation, one of London’s highest rated providers and providers of the excellent and well-used nursery we have here at the House of Commons, said:
“It beggars belief that a minister can wreak havoc on a sector that has explained the negative consequences of her actions....France is now the country with the highest sickness level in Early Years in Europe.”
Kids Academy, which operates in the north-west, contacted me to say:
“We oppose these changes and believe they are fundamentally wrong.”
Even the Minister’s own child care adviser, Professor Helen Penn, has described the plans as “grotesque”.
As reported in The Independent recently, a report commissioned by the Minister’s Department, but which has yet to be published, is believed to conclude that these plans will lead to a “deterioration” in the quality of care and will not reduce the costs to parents. Perhaps the Minister will take this opportunity to tell the House if and when she will publish this important report that she commissioned. The evidence from France is sketchy too, with many believing that quality has been compromised.
As the Minister failed to come to House at the time to debate the proposals, I hope that she will take the opportunity this evening to answer a few questions. Which stakeholders, parents and providers has she found to support these changes? What evidence does she have that the changes will do anything to reduce child care costs? Will she publish the evidence that she has received on quality and costs?
I turn now to the issue of additional financial support, on which the Government have provided a running commentary in the newspapers. Perhaps in recognition of the effect of the Government’s own policies on places and funding as well as their severe cuts to tax credits and family support, they have been briefing for some time now about a new package of financial support. However, on the face of what they are proposing it appears that not everyone will benefit, and how it will be delivered remains a mystery.
We are led to believe that the Government, if they can agree among themselves, are to offer a tax break of up to £2,000 a year per child to each household. This would be paid for by scrapping the child care voucher scheme and only
“a bit of extra money”.
By my reckoning, many families who currently benefit from the voucher scheme, especially dual-earning couples who currently get nearly £3,000 a year of tax breaks each, would be worse off under this proposal. Can the Minister today guarantee that no family in receipt of child care vouchers would be worse off under her new proposals?
Will the Minister explain how the tax-break scheme will work? Many people in the sector, and leading experts, think that there are only three different options for how it can work—through the employer, which places an extra burden on them; via self-assessment; or through providers, who would need to claim it back and then supposedly pass it on to parents. So which of these unappealing options does she favour? Will she say more about when these long-awaited proposals will be brought forward?
I am conscious that it is getting very late, but I would finally like to set out what I would like to see as the scope and framework for future child care policy, as I believe the scale of the crisis we face—and its impact on the economy—requires more radical thinking. The Government’s proposals are just tweaking at the edges. Before we even get into this debate, it would be useful if the Minister clarified what the current Government spend is on child care and child care support. I have heard her use different figures, ranging from £5 billion a year to £7 billion. Which is it? How is she calculating it? The OECD figures that she is fond of quoting, indicating we spend more than most, do not compare like with like, as children start school younger here than in many other European countries, a cost that is included.
Starting with what we currently spend on child care, we then need to look at how much the economy would benefit from more women returning to work immediately following maternity leave. All the evidence shows us that women—I am afraid it is still women—who take a break from work and their careers suffer a pay gap for the rest of their lives, very rarely returning to the level, hours and pay they were on previously. In many cases, they work part time on low pay for years after having children and do not return to their previous job.
So, we not only need to eradicate the disincentives to work, as outlined earlier, but we need to make the case to the Treasury of the long-term added value to the Exchequer of the tax revenue from women returning to their existing jobs. The recent Institute for Public Policy Research report “Making the case for universal childcare” argues that point extremely well. It argues that over a four-year period, there would be net return to the Exchequer of over £20,000 per parent from a returning mother, even when 25 hours a week of free child care is provided over that same four-year period.
Once this case is made, I believe we should look at investing up front the extra tax generated from parents earning more and working more, through more radical child care support. In my view, that should be focused on the points at which parents make decisions about how and when to return to work, especially when their maternity leave comes to end or when they have had their second child. These are critical moments of choice, but too often child care policy is centred on older children; by then, the parent might either have chosen to return to work or already have managed to struggle along with the extra support—however welcome it is when it comes. We need a parent-centred child care policy.
Critical to this parent-centred approach is parental leave and flexible working. I welcome the Government’s bringing forward proposals for parental leave to be shared between both parents—as Labour would have done. This is an important component to changing the nature and culture of workplace attitudes to having children, and I believe it will enable more parents to stay in the work force.
I know I have raised a number of big issues in this evening’s debate, and that we can only scratch the surface in half an hour. I hope, however, that this will help to develop some of the issues on the table.