Oral Answers to Questions

Debate between Nadhim Zahawi and Dan Carden

Monday 25th June 2018 Commons Chamber

[Nadhim Zahawi]

I thank my hon. Friend, who has been a great advocate of early intervention. She is absolutely right. On top of the £1.4 billion programme for troubled families, the Government are looking at reducing parental conflict. We know that many children in need have suffered from domestic abuse. The landmark Bill that we are bringing forward bears witness to our hard work across government to deliver this. However, she is absolutely right to say that early intervention is important and the Government take that very seriously.

[Dan Carden (Liverpool, Walton) (Lab)]

5. What assessment he has made of the effect of the Government’s policy on funded childcare on the financial viability of childcare settings.

[The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)]

The rates that we provide to childcare providers were based on the review of childcare costs, which was described as “thorough and wide-ranging” by the National Audit Office. We have recently commissioned new research to further understand providers’ care costs.

[Dan Carden]

Last week, the National Day Nurseries Association found that nurseries faced an annual deficit of £2,000 per child on the 30 hours of childcare policy. That means that nurseries are struggling financially; a skills shortage as workers quit the sector; and fewer nurseries for parents to send their children to, or more nurseries with under-qualified staff. When will the Minister conduct an honest review of the chaos that he has caused across the sector?

[Nadhim Zahawi]

Thirty hours is a success story. The summer numbers are 340,000 children aged three and four benefiting from 30 hours a week free childcare. For those parents taking advantage of that, that is a £5,000 saving a year. We are conducting a review to look at the economics of the model, as we have done in the past, when we raised the hourly rate from £4.65 to £5. It is a huge success story, and clearly the hon. Gentleman is running scared.

Oral Answers to Questions

Debate between Nadhim Zahawi and Dan Carden

Monday 14th May 2018 Commons Chamber

[Dan Carden (Liverpool, Walton) (Lab)]

15. What assessment he has made of the effect of the Government's policy on funded childcare on the financial viability of childcare settings.

[The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)]

By 2019-20, we will be spending an extra £1 billion annually on higher funding rates to deliver 30 hours of free childcare. The rates are based on our review of childcare costs, which was described as both thorough and wide-ranging by the National Audit Office. We have commissioned new research to understand providers’ current costs.

[Nadhim Zahawi]

We are spending record amounts on childcare—£6 billion in total. If we look at parents who got their 30 hours of childcare for three and four-year-olds, we see that 377,000 codes have been issued for the summer term. The system is working.

[Dan Carden]

Evidence to the Treasury Committee shows that the Government’s scheme is making childcare cheaper only for those already using it and failing to bring parents into work. How have Ministers created a system that pushes child carers into poverty and out of business, and prices out the poorest families in most need, like those in north Liverpool?

[Nadhim Zahawi]

Mr Speaker, you will not be surprised that I disagree with those words. A lone parent has to earn just over £6,500 and a couple just over £13,000 to be eligible for the 30-hours three and four-year-old offer. The Secretary of State spoke about the two-year-old 15 hour disadvantage offer and that same 15 hours for three and four-year-olds as well. The evidence is clear that the money is being targeted at those who are in most need.