Oral Answers to Questions

Munira Wilson Excerpts

Monday 4th November 2024 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Munira Wilson (Twickenham) (LD)]

Two thirds of early years places are delivered by private and voluntary providers. Further to the shadow Education Secretary’s question, what assessment has the Department for Education made of the impact of last week’s national insurance rise on those providers? How much more does the Department expect that parents will have to pay in nursery fees? How much additional cost will the Department have to bear to fund existing and planned so-called free hours for parents?

[Bridget Phillipson]

As was announced at the Budget, we expect to provide £8.1 billion for the early years entitlements in 2025-26, which is an increase of about 30% on the previous year. We will continue to deliver the roll-outs, because this Government have sought to protect education priorities in the Budget.

On the hon. Member’s precise question, we are looking in more detail at what the changes mean for providers in the early years sector, and we will have more to say shortly. Alongside the changes to the national insurance employer contribution rate, we are increasing the employment allowance to £10,500 and are expanding this to all eligible employers, so smaller providers may pay no national insurance at all in 2025-26.

[Munira Wilson]

Alongside formal childcare, many parents want to have the option of spending more time at home with their babies in those precious early months that are so crucial for a child’s development. Does the Secretary of State agree that at less than half the minimum wage, statutory maternity pay is far from “excessive”? What discussions has she had with ministerial colleagues about boosting support for those parents who want to spend more time at home, rather than being rushed back to work, in order to give families real choice in how they care for their children?

[Bridget Phillipson]

I agree that it is important we get the balance right. That is why the Deputy Prime Minister and the Secretary of State for Business and Trade are looking carefully, as part of our wider reforms to employment support and employment law, at what more we need to do around parental leave entitlements. I share the hon. Member’s concern about the comments we have heard from the now leader of the Conservative party, the right hon. Member for North West Essex (Mrs Badenoch), about maternity pay. I want to make sure that parents have choices about what works for them, what is best for them and what best supports their children’s development in those crucial early years.