Childcare: Affordability and Availability

Sam Tarry Excerpts

Tuesday 21st February 2023 Westminster Hall

[Sam Tarry (Ilford South) (Lab)]

It is a pleasure to serve under your chairship, Ms Fovargue.

It is worth mentioning that many of the MPs here—perhaps all of us—have children. In fact, many of us have quite young children. The hon. Member for Stroud (Siobhan Baillie) has had a baby since she became an MP, my hon. Friend the Member for Hampstead and Kilburn (Tulip Siddiq) has had at least two children while being an MP—[Interruption.] Of course, I could not forget my near neighbour, my hon. Friend the Member for Walthamstow (Stella Creasy)—I was just coming to her. I have seen a number of us, at different times, going through the Division Lobby holding small children. I believe that many MPs care about this issue, beyond any slogans or stories they have heard from their constituents; balancing being a good parent and giving your child the best start in life with representing up to 100,000 constituents, who often have far greater problems, is a real concern.

I think everyone in the House would agree that early years education is essential in supporting children’s development and ensuring that every child is given the best start in life. For many children, nursery is the most important source for learning vital social skills and understanding the world around them for the first time. The benefits for children starting their education of an early introduction to reading practice and letter recognition cannot be overstated. Children from disadvantaged backgrounds, including many in Ilford South, start falling behind their peers before they can even start school.

A decade of Government austerity and under-investment has allowed early years education and provision to fall by the wayside. Parents and carers of all descriptions have had to pick up the bill. The OECD says the UK now has the second highest childcare costs among leading economies. That is no good. We are also one of the most faltering G7 economies in terms of growth and the state of our economy.

Since 2010, over 1,300 Sure Start centres have been closed. In some areas, those centres have been slashed by 85%. All the while, the Government’s so-called free childcare offer is, in my view, desperately underfunded and excludes many of the most disadvantaged children from receiving the support they need. As a result, recent studies have found that parents are putting off having more children due to excessive childcare costs. Put simply, families have been priced out of having children.

Since the Conservatives took office, average nursery costs have increased by 44%. According to Pregnant Then Screwed, the financial burden of childcare has meant that 17% of parents have had to leave their job, and 62% say they work fewer hours because of childcare costs. As many hon. Members have said, it is primarily women who bear the brunt of those costs, which further increases the motherhood penalty and the gender pay gap.

Many parents with pre-school-aged children are now locked into what the TUC refers to as a Catch-22: as a result of the UK’s miserable statutory maternity pay, mothers face immense financial pressure to return to work early, leaving them to cope with those sky-high childcare fees. The current basic statutory maternity and parental pay rate equates to 47% of the national living wage. Statutory maternity pay was £151.97 in 2021-22—a £5-a-week real-terms fall since 2010-11. Parents are now forced to choose between staying at home to look after their children or working just to cover the exorbitant childcare costs, and that hits women, in particular, incredibly hard.

The impact on children of this failing system is also immense. Young children with complex needs require one-to-one support when they join settings, but they are often forced to wait months even to meet an occupational therapist, let alone to receive the dedicated support they require. Too often the nurseries I have spoken to have to fund that out of their already stretched budgets so they can put in place childcare for children with special educational needs and disadvantaged children. That poor access to good childcare is clearly a significant driver of inequality throughout a person’s life.

I recently spoke to Leah from Barney Bear’s Nursery in Ilford. She has three nurseries in my vicinity, and at least one in my constituency, which I have visited on a number of occasions. It is a brilliant childcare provider in my constituency. I talked to her about the current state of play in the sector, and she told me that she knows of three local nurseries that have been pushed to the brink of closure by the lack of sufficient increases in the hourly funding rate. Those Ilford nurseries cannot come close to covering their overheads or providing the quality of childcare that future generations deserve. She said:

“More and more nurseries are closing; it is a worrying time for nursery owners and staff…Our children are our future, and Early Years development is crucial…This Government need to do more! Help our nurseries thrive, provide free training, increase the funding rates, remove business rates, and bring back sure start centres.”

I hope the Minister will consider those things as we work together to tackle this problem.

The expected announcement on extending free childcare in the upcoming Budget is welcome, but without significant investment it will fail. Joeli Brearley, the CEO of Pregnant Then Screwed, said:

“The 30 hours ‘free’ scheme does not currently work for providers as it is knowingly underfunded by the Government. Providers must make up this shortfall by charging more for younger children.”

The massive staffing vacancies have to be addressed at a national level, and a national pay scale for childcare workers should be introduced. That is not an optional extra, as some in Government would have us believe. It has to be part of our national economic infrastructure.