Childcare Bill

Matt Rodda Excerpts

2nd reading
Friday 29th October 2021 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

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

Before I start, may I thank the Clerks and the Whips who have helped me to get to this point today? In particular, I thank the Lord Commissioner of Her Majesty’s Treasury, the hon. Member for Castle Point (Rebecca Harris), for her kindness and indulgence over a number of weeks.

I begin by recognising the contribution and hard work of the army of childcare providers in this country. Each day, thousands of families entrust their children to professionals who have dedicated their lives to caring for this nation’s young people. It is a vocation and it can be challenging, but without it we would all be so much worse off as a country.

The impact of the coronavirus pandemic and the necessary measures taken to keep us all safe have had a huge impact on children, and we now have an opportunity to work even harder to make up for the time that has been lost. We will all have seen in our constituencies the childcare providers who went all out to support the children of key workers. They put themselves in the frontline to keep our country going, while ensuring that children could continue their early years learning, even in the most stressful and difficult of situations.

I want every family in Reading, Caversham, Woodley and the whole United Kingdom to have the best possible start in life when it comes to their own childcare arrangements. I know that all Members of the House share that wish. We all want every young person to have the best possible start, and we all want to bring an end to the inequality that results from where someone is born, which can, even before their first birthday, shape their opportunities in life.

As the Chancellor of the Exchequer said in the Budget on Wednesday,

“the first 1,001 days of a child’s life are the most important.”—[Official Report, 27 October 2021; Vol. 702, c. 277.]

I genuinely welcome the announcement of investment in early years provision that the Chancellor made this week. It is clear that he and I, and I believe the whole House, share a view that we must level up childcare and early years provision in this country to support our children, support their families and, ultimately, support our economy. All the evidence shows that children who access early years education go on to achieve so much more.

This short Bill is entirely complementary to those Budget commitments and the House’s shared aspiration for our country’s children, and I will explain why. I will focus on three areas: first, the importance of a good start in the early years; secondly, the current system and where there is room for improvement; and thirdly, why it should be a national conversation and why we should have a serious debate about the future childcare system we want.

Every £1 invested in the early years is the equivalent of £8 invested in later education. Imagine any other industry or sector in which a £1 investment produced an £8 return every time—we would all be rushing, cheque books in hand, to invest. That is exactly what early years provision and childcare do for our children. Along with the love and support of parents and extended families, they provide a balanced and well-rounded introduction to life, which in turn reduces the cost to the country later. Every £1 invested gives children the skills and confidence that they need to learn, grow and thrive. It is what I wanted for my children, and what I want now for the nation’s children.

A well-resourced and comprehensive childcare offer in the early years is an engine that can drive social mobility. Early intervention, through early years provision, gives children a greater chance of accessing higher education and of securing apprenticeships. Those interventions really open doors later in life.

Every Member will have visited primary schools in their constituencies and heard from teachers of reception and year 1 classes who tell us that there is a marked difference in the development of children who have been immersed in early years support compared with those who have not. More people are accessing childcare now than a generation ago. The Nuffield Foundation reported that almost all children attend some form of early years education or childcare arrangement before entering school. That is a huge step forward for the country.

My Bill seeks not to amend or change the current provision in any way, but to champion it and to do all we can to ensure that everyone who is entitled to support knows about it and gets what they need. Clause 3 places a new duty on the Secretary of State for Education to prepare a strategy that promotes the availability of childcare and the benefits of early years provision to all eligible parents. As that is a devolved matter in the other nations of the United Kingdom, the Bill relates only to England. It would make the Secretary of State the named champion of childcare in England and it would compel the Department for Education to consider how the whole Government and the wider public sector, together with voluntary and private partners, can support and promote this important sector.

Crucially, the strategy would also have to consider how that information was delivered to parents in disadvantaged groups, which is levelling up. That is important because the research from the sector and think-tanks—I mentioned the Nuffield Foundation, which has done some excellent work on it—suggests that the children who would benefit most from free early years childcare are, sadly, least likely to access it.

According to the Nuffield Foundation, a third of children eligible for the funded two-year-old places are missing out, which is a tragedy. I want those children to access the help and support their families are entitled to, so that they can reach their full potential when they start primary school.

[The Parliamentary Under-Secretary of State for Education (Will Quince)]

indicated assent.

[Matt Rodda]

I am grateful for the Minister’s support and I know that he believes passionately in this agenda. Clause 3 seeks to do that by using the power of the Government and of the wider public sector and other partners to promote childcare availability to children who need it most—a modest ask that could make a huge difference to our whole country.

I turn to clause 2—I am approaching the Bill from the bottom up, which may be appropriate in the world of levelling up—which addresses the elephant in the room: what sort of childcare system do we want in this country? Much like clause 3, the clause does not seek to change current provision. I want to be clear about that to all Members present, and I believe we can work consensually on this important matter. I stand here today not to present answers but merely to facilitate a debate, with the support of the Minister and of other colleagues.

Governments of all political parties have been involved in shaping the childcare sector available to families today. From the Sure Start revolution of the last Labour Government to the new family hubs recently announced by the current Government, every Government have left their fingerprints on the sector. I am afraid this has led to a patchwork of provision in which postcodes, rather than local need, may determine services and in which anomalies have unfortunately been allowed to flourish. This does little to close the educational attainment gap, about which I spoke earlier.

Some areas are blessed with maintained nurseries, and Reading is one of those lucky areas. It is a system in which teacher-led provision, maintained by local authorities, provides the early years foundation curriculum in a more formal setting. I pay tribute to the maintained nurseries in my constituency and in other parts of Reading for their excellent work. However, local authority funding is currently challenged and there has been a decline in the number of places available across the country. Some maintained nurseries, luckily not in my area, have closed their doors.

Other communities are fortunate to have well-run provision in the private and voluntary sectors, either independent or linked to a primary school or multi-academy trust. There is a good mix between early years, as a precursor to school, and other long-established community providers that have often cared for successive generations of each family.

Consistency varies across the country and funding arrangements, due to their complexity, can be off-putting. Some two-year-olds may be eligible for free childcare depending on household income or entitlement to certain benefits, such as universal credit or tax credits. People who earn less than £16,000 before tax and are in receipt of tax credits will be eligible for a free place for their two-year-old. If their child is entitled to disability living allowance or personal independence payment, they may also be eligible for a free childcare place at the age of two.

However, everything changes when the child turns three, when all children become eligible for 15 hours of free childcare regardless of whether their parents are working. Working parents may be entitled to an additional 15 hours a week, taking it up to 30 free hours, but these extra hours are available to some other parents depending on household income and circumstances. My description shows how the system is complicated and difficult for parents to understand.

Although the system for three-year-olds does not sound too dissimilar to the arrangements for two-year-olds, I am afraid it is. The eligibility for two-year-olds is aimed at the lowest paid and the unemployed, but the eligibility for the additional 15 hours for three and four-year-olds is for those who work more than 16 hours a week and who have a household income up to £100,000. This means that the additional hours are disproportionately going to the children of wealthier parents who are in work and whose educational development is less likely to be held back. Unfortunately, this extra money is going to those slightly better off families.

My Bill does not propose changing the thresholds, but clause 2 would require the Secretary of State to appoint an independent person to lead a review of childcare schemes across England.

[Duncan Baker (North Norfolk) (Con)]

Will the hon. Gentleman give thought to why there is 15 hours of free childcare only in term time, when many people are trying to go back to work and a full-time job requires them to work in the school holidays, too? Why will the Government fund childcare only outside the school holidays?

[Matt Rodda]

The hon. Gentleman makes an excellent point, and the review I propose would, indeed, cover such issues.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

The hon. Gentleman talks about an independent person. Does he not see the benefit of the Children’s Commissioner? They are already in place and effectively already have that role, or will the independent person be under the Children’s Commissioner?

[Matt Rodda]

I will go on to make some further suggestions for the type of independent review, and I am grateful for that suggestion on the Children’s Commissioner.

The Bill does not propose changing the system itself, but it would allow the Government to appoint an independent person to lead a review of free childcare schemes in England. I believe this could have the same powerful impact as previous education reviews led by respected figures with cross-party support. I am thinking of—this goes back a bit into history—the Dearing review of A-levels in the 1990s, or the more recent Augar review of higher education funding. Sometimes, getting a fresh perspective can tease out problems and help to construct collaborative and co-operative solutions that are driven by the sector. Clause 2 would bring together, under the leadership of that independent person, providers, parents, research organisations and others that they saw fit, to take a proper look at how we take childcare forward in this century.

[Mr Richard Holden (North West Durham) (Con)]

I am particularly interested in this Bill, as a former special adviser at the Department for Education. Clause 2 sets out the different things that the review must consider. Would the hon. Gentleman consider, perhaps in Committee, including the strategy to increase awareness, as set out in clause 3(3)? Some of the most disadvantaged people do not take up the provision that is currently available, so a review could be helpful if it also considered how to better engage those groups with what he is trying to achieve.

[Matt Rodda]

I am grateful to the hon. Gentleman for that intervention; he makes a thoughtful point. He is absolutely right that there is a connection between raising awareness of this vital sector and the role of the review, and I would be grateful to work with him on that. As a former civil servant in the Department, I am very aware of the pressures and difficulty of trying to make the most of our ability to communicate with parents and the difficulty of reaching hard-to-reach groups.

The review would seek answers and pragmatic, practical solutions to the challenge that we have discussed today. That is very much what is needed at this stage. It is not just me calling for this; over 13,000 people signed a petition requesting a review. The National Day Nurseries Association has stated that childcare providers want the system to change in order to ensure that it works for all parents. The national day care alliance estimates that the childcare sector is facing other issues, which could also be discussed by the review, such as the potential shortfall of around £2 billion a year in Government funding, which the alliance believes is needed to meet the costs associated with providing free childcare on offer. As a result, nurseries are forced to charge higher costs to fee-paying families to cross-subsidise those eligible for free care. This, I am afraid, is robbing Peter to pay Paul and drives up the cost of childcare for everyone in the country.

Finally, during the recent debate in the Petitions Committee, the hon. Member for Chelmsford (Vicky Ford), the then Minister, said a review would not be appropriate before the comprehensive spending review. We have now had the Budget and the CSR, so I believe the timing is right. I am grateful to the current Minister for engaging. I believe that, as a new Minister, he may have a wonderful opportunity to take this forward. This is the perfect time to look at the system and ask ourselves whether it is the very best it can be.

The Chancellor spoke on Wednesday of moving to a post-covid economy. To support that post-covid economy, we need a post-covid childcare system that underpins and supports as many parents as possible back into work. We need a system that works for parents, providers and the whole country, but most importantly we need to invest in our children. I will work with anyone in this place to ensure that our children are given the best possible start in life.

As I draw my remarks to a close, I would like to spend a moment, with the House’s indulgence, thanking some of those who have so graciously supported this work. This place can be a maze of process and procedure but, with patience and good humour, the Whips and the Clerks are there to help. I again pay tribute not only to the hon. Member for Castle Point (Rebecca Harris), but to the Clerks and other people who have supported me. I also thank the media, including Grazia magazine, which is also campaigning on this issue, and others who are supporting me. I would like to offer my thanks to my hon. Friends the Members for Stretford and Urmston (Kate Green) and for Hampstead and Kilburn (Tulip Siddiq), who have supported my endeavours with this Bill and provided sound advice where it was needed. To the Minister, I say once again that I believe—and I believe that he sees it in this way—that politics does not need to be confrontational. It does not have to be angry, as we have seen in the last few days. We can work together and seek compromise, and find better solutions, precisely because we are working together.

The Minister has been generous with his time, and despite our political differences, he has engaged in constructive debate and discussion. Whatever happens today, I hope that in his contribution he will consider the good faith that I bring to the Bill, and will feel able—perhaps because of his own experience—to meet me and representatives of the sector to see how we can progress this issue.

I believe that investing in early years education is one of the first duties of Government. It is the right thing to do, and now is the time to do it. I commend the Bill to the House.

[Several hon. Members rose—]

--- Later in debate ---

[Matt Rodda]

With the leave of the House, I beg to withdraw the motion that the Bill be read a Second time. I wholeheartedly thank the Minister for his genuine commitment to this important issue and the way that he has engaged with me. I am extremely grateful to him and look forward to working with him. I listened carefully to his speech and those of others Members. I want to express my thanks and my genuine pleasure in working in a cross-party way. I believe that we as a House have shown something very positive today: that we can work across the House in a thoughtful and measured way to achieve something of great national importance.

I am deeply grateful to everybody who has spoken and for their thoughtful suggestions, which I wholeheartedly agree with. I particularly thank the hon. Member for Beaconsfield (Joy Morrissey) for her point and the hon. Member for North West Durham (Mr Holden) for his knowledgeable points, which showed his experience in the Department, along with the hon. Member for Guildford (Angela Richardson) and many others for their thoughtful and timely points. I look forward to working with the Minister and colleagues across the House on this important matter. I beg to ask leave to withdraw the motion.

Motion and Bill, by leave, withdrawn.