Childcare Bill [ Lords ] (First sitting)

Debate between Michael Tomlinson and Pat Glass

Tuesday 8th December 2015 Public Bill Committees

[Pat Glass]

I am delighted to discuss the Bill in Committee on behalf of the Opposition. I look forward to serving under your chairmanship, Ms Dorries. I support the Bill, but as I pointed out to the Minister on Second Reading, good government is about good law, and good opposition is about good scrutiny and challenge. The Bill, which we all support, will be better with good scrutiny and challenge.

The Labour party has a proud record on childcare, supporting women and enabling them to return to work. A Labour Government introduced free childcare for three and four-year-olds, and delivered the first and only childcare strategy across Government. Labour created Sure Start centres serving families and children in every community, expanded school nurseries and more than doubled childcare places. We increased maternity leave from 12 weeks to 12 months, and we increased maternity pay and paternity leave. Labour introduced the right to request flexible working and gave parents help with the cost of childcare through tax credits and vouchers. Childcare was a key part of those plans to support families and to make work pay, and we welcome any investment in it.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

In the spirit of bipartisan, cross-party agreement, will the hon. Lady agree that it was the Conservative party in 1996 that first proposed free entitlement?

[Pat Glass]

You know what, I do not go back that far, but I am happy to concede the point. I do understand, going back an awfully long way to the 1970s, that local authorities were unable to provide nursery education; it was the former leader of the Conservative party, Mrs Thatcher, who introduced that. I am happy to concede those points.

--- Later in debate ---

[Pat Glass]

I thank my hon. Friend. It is right that the Government now accept that supply-side funding through free entitlement is a more effective way of helping parents with the cost of childcare. It is a way of controlling prices and quality. However, the Government’s record in recent years, excepting 1996, is less glowing. Financial support for childcare for most families fell in the last Parliament while costs rocketed by a third—they are up more than £1,500 since 2010.

I know that it is not for the Committee to consider the pre-election promise of tax-free childcare, but I never understood that, because from what I can see it has nothing to do with taxes or Her Majesty’s Revenue and Customs. Tax-free childcare remains undelivered and severely delayed, and early years childcare places have fallen by more than 40,000 since 2009.

The two-year-olds offer, although a good policy, remains undersubscribed. The chief inspector of schools highlighted in his annual report, which was published last week, that

“113,000 children who would most benefit are not taking up their government-funded places. As a result, too many of the most disadvantaged children are not ready to start formal schooling. Children from low income backgrounds often do best in the structured, graduate-led environment that schools offer. However, the places offered by schools for two-year-olds are disproportionately being taken up by children from more advantaged households.”

Those are not my words but those of Sir Michael Wilshaw, the Government’s chief inspector of schools and head of Ofsted, which were published last week.

Sure Start children’s centres are closing up and down the country. Between April 2011 and June 2015, 250 centres closed. A quick glance at the budgets of those centres that remain open shows that many are becoming signposting centres, with budgets that cover little other than a caretaker and a bottle of Domestos. Many others—I have visited quite a few recently—are no longer childcare centres for under-fives, but for the whole range up to 19. That is not necessarily a bad thing, but that is not what they were intended to be and they are certainly not supporting childcare in the early years.

When I was a member of the Education Select Committee, we looked at childcare in some detail and found that more than a third of childcare centres no longer had any children in them. In evidence to the Select Committee on 18 June 2014—I think I chaired that session—the then Minister for childcare, the right hon. Member for South West Norfolk (Elizabeth Truss), said it was not true that the network of Sure Start centres was diminishing greatly. In the face of overwhelming evidence, the narrative appears to have changed: now it is not about buildings, but about services. However, 4Children’s excellent recent report blows that out of the water. It highlights that more than 2,000 children’s centre sites have had their budgets significantly cut in this financial year, leading to a reduction in front-line services, including days and hours of opening.

The recent story of early years support by the Government is one of reducing support for working families, childcare costs going up and the gender gap remaining stuck for the first time in 15 years. Families were promised tax-free childcare now, but it is going to be delayed for another two years. The promise of 30 hours’ free childcare for three and four year-olds has had the thresholds significantly increased, from eight hours to 16 hours of paid work, or £107 per week. The Minister will have to explain that in a little more detail, because this is scary stuff for parents. If they get this wrong, there are significant penalties involved, and the Government are going to have to be very clear about what the eligibility is. I am not clear about that, so I do not think that it is clear to parents.

[Michael Tomlinson]

Does the hon. Lady not think that it is only fair that the threshold has been increased from 8 to 16 hours, given that there is already a 15-hour entitlement that is going to remain? Providers in my constituency have contacted me to say that it is only fair and reasonable, given that 15 hours is being provided universally, that 16 hours should be a minimum in order to qualify for the remaining hours.

[Pat Glass]

I think there are some real issues about this, and I will talk about them later. The early analysis shows that raising the thresholds means that 1.4 million parents have been taken out of eligibility, and those parents tend to be in the lowest income bracket.