Childcare Bill [Lords]

Maria Miller Excerpts

Wednesday 25th November 2015 Commons Chamber

[The Secretary of State for Education (Nicky Morgan)]

I beg to move, That the Bill be now read a Second time.

I am delighted to open this Second Reading debate. At the general election, the Prime Minister promised that a Conservative Government would

“give working parents of three and four-year-olds 30 hours of free childcare a week”.

We put the early years at the heart of our manifesto because we know how important those years are for children’s school readiness and future educational success. We also know that working families struggle to find flexible, affordable and high-quality childcare. For many parents, this challenge is the biggest barrier to work. So I am determined—and this Government are determined—to deliver these measures that will give children the best start in life, support parents to work and allow our economy and our society to prosper as a result.

We brought forward this Bill so that we can give working parents an extra 15 hours of free childcare—in addition to the current 15 hours of free early education for all three and four-year-olds. The 30-hours offer will give hard-working parents a real choice to earn more by going out to work or working more hours, if they want to do so. We have not wasted any time in delivering on this commitment. Just one month after the election, we introduced this legislation to the other place and launched a review of the cost of providing childcare—something that providers had long called for to inform a fair and sustainable funding rate.

[Mrs Maria Miller (Basingstoke) (Con)]

My right hon. Friend rightly says that she wants to make sure that her measures are delivering for all children. How is she going to make sure that this Bill delivers for disabled children and their access to childcare, which can be so important for helping parents who want to get back into work?

[Nicky Morgan]

I thank my right hon. Friend very much indeed for that question. She raises an important point. We want local authorities—in fact, they are under a duty—to ensure that they provide places for all children, including those with disabilities.

This Childcare Bill and the 15 additional free hours it provides is, of course, part of an overall package of childcare measures being introduced by this Government. My right hon. Friend has already talked today about the fact that we are spending over the course of this Parliament £1 billion more on childcare every year. I shall come on to talk about this in more detail.

We will conduct an early years funding formula review, as we want to understand how providers cater for children with disabilities and special educational needs. I should also point out for the sake of completeness that our tax-free childcare proposals mean that the maximum amount parents of these children could pay into their childcare accounts is double the amount that could be paid for children without disabilities. Parents can use that money for children with disabilities until they are 18, and for children who are not disabled until they are 12. I hope my right hon. Friend will agree that we are offering a comprehensive package of childcare support for all children and all families.

--- Later in debate ---

[Mrs Maria Miller (Basingstoke) (Con)]

Childcare is not a political football, and I really hope that the hon. Member for Manchester Central (Lucy Powell) is not choosing to make it one. On behalf of my constituents and, indeed, those of Members across the House, we want to make sure that a consistent approach is taken to childcare in the future. That also applies to the children of those constituents and to the providers of childcare as well.

It is important to recognise that there are important differences between Members on the two Front Benches. The Conservative Government are showing a real understanding of the role of childcare, and their proposed measures are vital for working parents. A quiet revolution has been happening in the workplace since the country’s recovery from the recession, with more women in work than ever before, including, to be frank, in this place. It is important to recognise our different approach, particularly the fact that, over the past five years, the Prime Minister has made it central to his work in Government to make sure that shared parental leave and flexible working are in place for all parents and, indeed, in the case of flexible working, for all of us. The Labour party did not deliver those ambitions during its time in office.

There are still many women who are not in work but who would like to be. I am participating in this debate because it is important to support the Bill, which will double free childcare alongside other measures mentioned by my right hon. Friend the Education Secretary, including, for the first time ever, tax-free childcare. As she has said, it will offer more support to working parents than any previous Government have ever offered. May I gently suggest to her that as well as talking about our being the party of working people, she should talk about our being the party of working women? In essence, that is what this Government are delivering through the childcare priorities that she has set out.

It is vital to understand the pressures faced by working parents, particularly those with small children. In the past, women who wanted to return to work found it almost impossible to do so because of the financial pressures on them. It would be entirely wrong for the other place to seek to delay this important manifesto commitment by forcing yet further research and funding reviews, which are clearly not required for this measure to work. I underline the words “manifesto commitment” to make sure that those in the other place listening to this debate do not seek to block an important measure supported by Members on both sides of this House.

Childcare costs continue to be a real pressure, which is why the Bill is really important. I pay tribute to the work of organisations such as 4Children which have provided us all with excellent briefings in advance of this debate. In its briefing, 4Children points out from its research that one in five parents have considered reducing their working hours because of the cost of childcare. That is why this Government measure is so important. We have gone a long way to make childcare affordable, but there is still more to do, and the Bill will help to do that for parents. I hope that the hon. Member for Manchester Central, who is listening to the debate on the Opposition Front Bench, really registers that point and accepts that it is the will of parents.

I welcome the Bill, as well as the Government’s commitment to increase average childcare funding rates paid to providers. I also welcome the preliminary measures that the Secretary of State has outlined to ensure a fair distribution of funding across the country.

In most of the families in my constituency—one-parent and two-parent households—all the parents are working. Indeed, 16,000 families in Hampshire could benefit from the Bill. This measure will be a seismic change for those families, and it is important to put it in place. In Hampshire, we are well placed to take advantage of the new measures, because 90% of our providers are good or outstanding, according to Ofsted. We have more than 1,400 early years providers in the county, doing a fantastic job providing private and independently owned places to deliver this key public service.

We are, however, still recovering from past measures that were put in place with good intentions but that unintentionally did some damage. In the past, thousands of childminders left the sector because of the pressure they felt from the administrative burdens on them. That was a great shame, because those childminders provided excellent or good childcare for many working parents, particularly those looking for after-school care. Undeniably, Government funding for free places was top-sliced, as my hon. Friend the Member for York Outer (Julian Sturdy) mentioned in his intervention, because of a lack of focus on the detail of how that could be prevented.

Indeed, parents have in the past been overwhelmed by the complexity of what was on offer. Initiatives were so complex, badly communicated or overlapping that many of our constituents found it difficult to understand how they could access them, and they also provided additional complexities for employers. I therefore welcome the Secretary of State’s commitment to making the system simpler, which is an admirable place to start.

For a Second Reading debate, the hon. Member for Manchester Central rather over-focused on the financial details. They are important, but so are other things. I will draw the attention of the Secretary of State and her Ministers to a few of them. The first is the importance of making sure that we have stability for parents in terms of their access to childcare. If working parents do not have long-term, permanent contracts, they may have breaks in employment or variable hours during the working week. We need to make sure that there is stability in the childcare on offer to the children involved. Perhaps the Under-Secretary of State for Education, my hon. Friend Member for East Surrey, will touch on how he will ensure that there are grace periods, so that parents with an underlying eligibility who have short breaks in their employment can still access childcare if at all possible.

My second point is on flexibility, building on some of the points made by the hon. Member for Manchester Central. Some 45% of women with children do not work full-time. Many work atypical hours, but many work less than a full working week. Flexibility should take account of both types of work pattern so that the cost of childcare is not higher than it should be, relative to the hours those women work. This should be at the heart of the proposals that Ministers are introducing, not left to the discretion of local authorities. I hope Ministers will consider this further, to make sure that a great policy works in practice for women and parents who need it so badly.

[Emily Thornberry]

From my study of the Blue Book, it seems that childcare will not be available to parents unless they have a weekly income level per parent equivalent to 16 hours a week worked at the national living wage. That seems to contradict the idea of people, particularly women, being able to work flexibly.

[Mrs Miller]

I thank the hon. Lady for bringing that up. I am not about to have a Committee debate on the Floor of the House. I hope she is on the Committee because she will bring undoubted expertise to it, to judge from her earlier comments. I am simply setting out the issues that I think should be debated in the course of the Bill’s passage through the House, and I leave the Ministers to answer the detail of the hon. Lady’s point.

On the business model of the providers, the hon. Member for Manchester Central, speaking for the Opposition, highlighted the need to make sure that the provisions work for the providers. Unlike many services that Governments deliver, childcare is delivered predominantly by private and independent providers. It is important that there is an understanding of the business model according to which providers work, and, as was touched on earlier, it is important to make sure that any funding regime takes into account the realities of business life for providers.

I applaud the announcement today of an increase in the average hourly rate that will go to providers, but this will work only if there is a guarantee that the money made available is not top-sliced by local authorities, which may seek to use it to prop up services that apparently support the childcare sector. Some of those services are important, but most important is that the money gets to the providers to provide the care for our children. Making sure that more of that money gets through will ensure the quality of that care.

Another aspect that I hope the Secretary of State will be able to consider as the Bill passes through the House is the knock-on opportunities for staff. Apprenticeships should be made available to those working in the sector in the quantity that will be needed to staff this new initiative.

I thank my right hon. Friend for her response to my intervention about special educational needs. That point was raised with me by Contact a Family, which has undertaken an excellent piece of research that shows that 40% of families with disabled children cannot take up the 15-hour childcare offer that is currently available. That is 10 times more than the families of non-disabled children. Parents of disabled children often feel that staff do not have sufficient training or that providers can refuse a place for a disabled child. Denying a child that opportunity to develop is unacceptable. Denying parents the opportunity to work is unacceptable. I am delighted to hear that there is a focus on ensuring that the support for children who are disabled to get such childcare is manifest. I applaud the work that has been done and hope that it continues.

In conclusion, I am hugely fortunate to come from an area, Basingstoke and north Hampshire, that has a strong childcare sector—strong because we have a strong local economy as a result of the measures that this Government have put in place. Our unemployment levels are at a record low, but this is not the case all over the country. We need to have a strong scheme to ensure that the childcare sector can flourish in every constituency up and down the country.

In my constituency, more than 40 group settings have said that they want to provide the 30-hour offer and 92 childminders have expressed interest in being part of the early implementation of this groundbreaking offer for parents. I believe that Hampshire County Council is registering its interest in being an early adopter of the policy. I hope that, with support from the Government, the council is able to do that, because we need to ensure that such excellent counties are in the vanguard of delivering this exciting new policy. I commend Ministers for the incredibly hard work they have put into this measure and for bringing it before the House today.