Maintained Nursery Schools Funding

Nadine Dorries Excerpts

Wednesday 1st February 2017 Westminster Hall

[Nadine Dorries (in the Chair)]

Order. Only a few hon. Members have put down their names to speak, but there are rather a lot present. Interventions are welcome, but I will not tolerate their being used as an opportunity to make a speech.

[Helen Jones (Warrington North) (Lab)]

I beg to move,

That this House has considered funding for maintained nursery schools.

It is a pleasure to be here under your chairmanship, Ms Dorries. It may help if I say at the outset that I do not intend to speak for long and will take only a few interventions; otherwise I shall be unfair to colleagues, many of whom want to make speeches.

We are here because we fear for the future of maintained nursery schools—the jewel in the crown of early years education. Maintained nursery schools have an outstanding record of providing for the very youngest children; 60% of them are rated outstanding by Ofsted, and 39% as good. That record of excellence is equalled nowhere else in the education sector. It is not anything like equalled even in the early years sector, where only 17% of other nurseries and preschools, and 13% of childminders, are rated outstanding. One would think that any Government would want to preserve and even expand a system that achieves such a degree of excellence, but unfortunately the reverse is true. The Prime Minister told me last week that she wants

“good-quality education at every…stage”.—[Official Report, 25 January 2017; Vol. 620, c. 285.]

However, when the Government started their consultation on early years funding, it is fair to say that it caused panic in the maintained nursery sector.

The response to the consultation has done little to allay the feeling of panic, because the Government want to fund all providers equally. They tell us that the average amount paid per hour for three and four-year-olds will rise from £4.56 to £4.94, and that no council will receive less than £4.30 an hour, so that providers can be paid at least £4. That would sound extremely reasonable if all providers had to abide by the same rules and do the same things, but they do not. That is the real problem. Even with the transitional funding that the Government have promised, one in 10 nursery schools still think they will have to close by July and 67% believe they will have to close by the end of the transitional funding.

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[Marion Fellows]

I take refuge in my international observer status, which I frequently refer to on the Select Committee on Education. I look at things from a different perspective, but I passionately want children throughout the UK to have the best possible start.

The hon. Member for Washington and Sunderland West (Mrs Hodgson) spoke about maintained nurseries as the jewel in the crown of the education system. She also made the point, which was echoed throughout the Chamber, that there are more maintained nurseries in deprived areas. That is undoubtedly a good thing, because that is where they are needed. If the United Kingdom is to move forward, we need to encourage and help those who are most deprived. Some of us here will not recognise the shocking statistics about parents not reading to their children or even talking to them, but there are such parents, and they and their children are the ones who need most help. That is why early years education is so important.

The hon. Lady said that the end of the two-year transitional arrangement could lead to a quite significant number of closures of maintained nurseries. She spoke about a drop in funding from £5.38 to £5.11 per hour—a huge drop that could lead to closures that I am sure no one in the Chamber wants.

The hon. Member for Cleethorpes (Martin Vickers) reinforced the difference between childcare and early years education. He spoke eloquently and passionately about Scartho Nursery School, which typifies most maintained nursery schools. In fact, it would be difficult to name any hon. Member who has contributed to the debate without speaking passionately about the need to maintain these nurseries.

The hon. Member for Great Grimsby (Melanie Onn) said that she did not want this debate to be lost in the Brexit fog that has now descended on the main Chamber. I could not agree more. At times like this, we have to keep raising these issues and pushing the Minister to listen carefully, change her proposals and make a difference. Some nurseries will not even be offering an additional 30 hours of free provision because of the cost of implementation.

The hon. Member for Halton (Derek Twigg), too, was passionate about the excellent nurseries in his constituency. He described the devastating impact of the removal of transitional funding: the expertise that has been built up in the maintained nurseries in his area in supporting children with special educational needs and disabilities could be lost—and once these services are lost, it is very difficult to get them back.

The hon. Member for Bradford West (Naz Shah) said that nurseries are the part of the education system that has the least gap between children. The evidence on the subject, which the Scottish Government have based a lot of their measures on, shows that if we can get children into nurseries and give them proper education early on, we can carry it forward—the right hon. Member for Chelmsford also mentioned that. I cannot overstate the need for maintained nurseries with excellently educated staff who reach out across the whole sector.

This is not my debate or my area, but it is quite useful to turn briefly to what is happening in Scotland, as I do quite often. The political will in Scotland is different. The First Minister has made it her main priority to close the attainment gap, and the Scottish Government believe that the best way to do that is through transforming early years education and giving all children the best start in life.

[Nadine Dorries (in the Chair)]

Order. Ms Fellows, could you begin to wind up so that the other two Front Benchers have time to speak?

[Marion Fellows]

Yes. Let me just say that, as a former councillor, I know how partnership nurseries work in Scotland—the local authorities help to fund and give their expertise to privately funded nurseries—and perhaps the Minister would like to think about that. What is needed is political will. I urge her to take on board what she has heard this morning and make the changes necessary to retain maintained nurseries in England.

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[Marion Fellows]

You have done your slagging off.

[Nadine Dorries (in the Chair)]

Order.

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[Caroline Dinenage]

If the hon. Lady sits down, I will make a little progress. [Interruption.]

[Nadine Dorries (in the Chair)]

Order. Ms Jones, you may get a chance to wind up at the end.

[Caroline Dinenage]

I put it on record that I want to preserve and promote the quality and expertise of maintained nursery schools. Social mobility is a high priority for the Government. That includes committing to the task of spreading existing best practice in high-quality early years provision across the whole system. We want all children, whatever their background and individual needs, to access the high-quality early education they deserve, wherever they come from. Nursery schools can play a valuable role in spreading that quality throughout the early years system, and many already do. I recently visited Sheringham Nursery School in Newham and saw at first hand the high-quality teaching and excellent system leadership it was providing to nurseries, private and voluntary providers and childminders across the local area. Many Members have already mentioned that issue.

Since I was appointed as Minister for early years in July, I have had many positive—but some challenging—conversations with nursery head teachers, staff and other early years professionals from across the country in an attempt to understand the issues these schools face. I have had a healthy flow of emails and letters from head teachers, governors and MPs on the subject of nursery schools. I really do understand the challenges they face. I have a very valuable one in my constituency, and I recognise the impressive support such schools have in their communities.

As my right hon. Friend the Member for Chelmsford (Sir Simon Burns) and the hon. Member for Manchester Central (Lucy Powell), who is no longer here, have mentioned, I spoke to the all-party parliamentary group on nursery schools and nursery classes last week. I was concerned by suggestions, as misquoted by the Opposition spokesperson, that 45 maintained nursery schools thought they faced closure. As a result, I asked my officials in the Department for Education to contact Pen Green, which is the maintained nursery that conducted the survey. Because the survey was confidential, Pen Green has gone to the relevant maintained nursery schools to ask whether it can pass us their names. I urge Members and those in the sector to speak to us. I would like my officials to speak to every single one of those 45 nurseries that think they face imminent closure so that we can get to the bottom of the issues.

It is clear that one of the key issues facing nursery schools is funding, which is related to the introduction of the early years national funding formula. I want to be quite robust about this: the Government are not making any cuts to early years funding. In fact, we are spending more money on this than any Government. By the end of this Parliament, we will be spending £6 billion a year on childcare. [Interruption.] We all know that some of our Labour friends and colleagues live in a fluffy bunny world of economics, where money grows on trees and we can all spend what we want, but £6 billion a year of taxpayers’ money is more than any Government have ever spent on this area. It includes more than £300 million a year for a significant uplift to our funding rates. For example, Warrington is seeing a 19% increase, Great Grimsby is seeing a 17% uplift and Manchester Central is seeing an 18% increase. [Interruption.]

[Nadine Dorries (in the Chair)]

Order. I do not ever tolerate in my debates chunnering from the Back Benchers when anyone is speaking. Please desist.

[Caroline Dinenage]

Thank you, Ms Dorries. Members will also know that I have committed supplementary funding for maintained nursery schools of £55 million a year. That is not for two years, as the hon. Member for Washington and Sunderland West (Mrs Hodgson) misquoted, but until at least the end of this Parliament, so that current funding rates can be maintained. It will be £56 million this year. I cannot remember who it was, but one Opposition Member said that we need to spend more money and that we are doing it on the cheap. I would like to take a moment to think about that figure: £6 billion a year is a huge amount and is taxpayers’ money, but it is the right amount and it reflects the Government’s commitment to providing the high-quality, affordable childcare that hard-working parents need.

[Caroline Dinenage]

I am more than happy to speak to the hon. Gentleman and any concerned providers in his constituency. We took a view to try to make the funding fairer across the country. We have also set in place a 95% pass-through rate, so that 95% of the money that local authorities get will go on to providers, and that will help. In some cases, local authorities were keeping back up to 30% of the funding.

I need to make some progress. We know that for historical reasons there were clearly unfair and unjustifiable funding differences between areas and between different types of providers. That is why we introduced the fair funding formula which maximises the amount passed on to providers while ensuring that all local authorities are adequately funded to secure sufficient early education, including that provided by maintained nursery schools. I recognise that nursery schools have costs over and above other providers because of their structures and because of the nature of the communities they serve. That is exactly why I announced the additional £55 million a year for local authorities to allow them to maintain existing levels of maintained nursery school funding at least until the end of this Parliament. The Opposition spokesperson asked me how that money will be distributed. It will go to the local authorities, with the presumption that 100% of it will be passed on to the maintained nursery schools. It will not be part of the 95%.

The hon. Member for Great Grimsby (Melanie Onn) asked about SEND funding. In our early years national funding formula response, we said that through legislation we are requiring local authorities to set up a SEN inclusion fund and publish the eligibility criteria and value of that fund at the start of the year. It will be a local decision on eligibility, but it will be made in consultation with the local early years provider. It should be focused on low levels and emerging SEN, so that we do not have the issues with having to wait so long to prove that children are eligible.

Looking ahead, Members have asked me to share what I see as my future priorities for nursery schools. Those have developed out of the conversations and discussions I have had with head teachers, staff and early years experts, and they build on examples of innovation and partnership working that many, but not all, nursery schools currently demonstrate. Nursery schools should focus on the needs of disadvantaged children and children with special educational needs and disabilities, but all of them can drive early years system improvement by providing pedagogical leadership. We can work in partnership with other local childcare providers, including childminders, to deliver better quality and practice. We can maximise the use of their skills, experience and resources to become more sustainable.

As Members know, we have committed to consulting openly on the future sustainability of nursery schools. That is the right approach. Nursery schools operate within a changing world and it is important to recognise that it might not be the case that nursery schools should provide more of the same, and in the same way. We need to ensure that they are focused on where they can have the greatest impact. The landscape for the delivery of children’s services is evolving. Partnership working is the norm in many areas, but practice is variable. Some local authorities, but not all, make full use of their nursery schools by commissioning services and asking them to co-ordinate or deliver quality improvement for their areas. System leadership of that sort makes very good use of nursery schools’ expertise and experience, and I want to encourage more of that.

However, some local authorities hardly engage with their nursery schools, leaving them isolated rather than drawing on the expertise and specialist resources they offer. The schools landscape is changing as more secondary and primary schools opt to convert to academy status and join multi-academy trusts. Moreover, all public bodies, including schools, are grappling with tight budgets. That will mean looking at how to deliver better value for money and getting the balance right.

We have a lot to bear in mind as we consider the future, but I think that we are coming from a strong starting point, given the tremendous track record nursery schools have in delivering rich learning experiences and high-quality early education to disadvantaged children, including those with special educational needs and disabilities. Our consultation will explore the vision in more detail, including the best ways to bring it about. I hope that those in the sector will take part and share their experience, wisdom and views with us once the consultation is launched. They certainly have not been shy in sharing those views with me so far. I appreciate it, and I sincerely hope they will continue to be honest and frank with me as we move forward together. The steps I have outlined will ensure the continuation of the important contribution that nursery schools make to the early years sector and the future opportunities of young children in deprived areas.

[Nadine Dorries (in the Chair)]

Ms Jones, would you like to wind up in the few seconds left?