Children’s Education Recovery and Childcare Costs

Stella Creasy Excerpts

Tuesday 7th June 2022 Commons Chamber

[Mr Walker]

I want to come on to the attainment gap, which has been mentioned, but I will give way one more time.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

I thank the Minister for giving way. The point that my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) makes is apposite because we know that the vast majority of families picking up on the tax credits to be able to use early years are from wealthy households, and that a lot of families are being priced out of early years childcare because of the cost. I am sure the Minister would agree that the fact that nearly £2.8 billion-worth of tax credits were unclaimed last year is a problem; if there is a subsidy for childcare, we should encourage parents to take it up.

Does the Minister understand how perplexing the situation is? If it was a priority for the Government, we would see them investing in telling parents about it. For example, the Government spent £35 million on adverts about Brexit in last year, but they have spent £150,000 in total on telling parents where they can get tax credits to cover the cost of childcare. Does he understand the concern about that disparity, and what is he going to do about it?

[Mr Walker]

The hon. Lady makes a fair point. We do want to see better take-up of the offers coming in, and the Under-Secretary of State for Education, my hon. Friend the Member for Colchester (Will Quince), has been working hard on that. Perhaps he will say a bit more about it in his closing remarks, but I recognise the issue. Of course, we also provide a lot of direct funding to the disadvantaged through the two-year-old offer, as I think the hon. Lady will recognise.

We know that the covid pandemic has caused considerable disruption to the education of our nation’s children and young people. Evidence shows that that has been significant for all people, in particular the disadvantaged, reversing the years of progress we had seen in closing the attainment gap. The gap between disadvantaged pupils and their more affluent peers had narrowed, both at primary and secondary levels, between 2011 and 2019, following the introduction of the pupil premium. Despite the impact of covid-19, the latest pupil progress data published at the end of March 2022 shows that we are now seeing good progress for many pupils, but we know that certain groups and age groups need more help.

Since 2021, the additional gaps in attainment created by the pandemic appear to have reduced in primary maths and secondary reading. Evidence shows that, on average, primary pupils recovered around two thirds of progress lost due to the pandemic in reading and around half the progress lost in maths. To mitigate the impact on secondary pupils in key stage 3, we committed to doubling the rate of the recovery premium for secondary schools for the next two academic years from 2022-23. That will help schools to deliver evidence-based approaches to support the most disadvantaged pupils, from small group support in reading and maths to summer schools.

We know that literacy is fundamental to children’s education. As mentioned in the schools White Paper, since 2010 the Government have placed the effective teaching of phonics at the heart of the curriculum, introducing the annual phonics screening check in 2012 for pupils at the end of year 1 and incorporating phonics into teacher standards.

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[Mr Walker]

I am happy to do that, and if it would be helpful, I would be happy to meet the hon. Gentleman to follow up and talk through that case in a separate discussion, because it sounds like an important case.

To ensure that schools are able to put in place whole-school approaches to mental health and wellbeing, we are providing £10 million to extend senior mental health lead training to even more schools and colleges. That training will be available to two thirds of eligible settings by March 2023 and to all state schools and colleges by 2025.

The Government are expanding and transforming mental health services for all, with additional investment of £2.3 billion a year through the NHS long-term plan. As part of that work, we are funding mental health support teams to provide specific support, to make links to other health provision and to help to support school staff to deal with issues. Because of the £79 million boost to children and young people’s mental health support that was announced in 2021, some 2.4 million children and young people now have access to a mental health support team, and more teams are on the way, with numbers set to increase from 287 teams today to more than 500 by 2024.

I recognise that people throughout the country are worried about the impact of rising prices, with many households struggling to make their income stretch to cover the basics. Although we cannot insulate people from every part of cost rises, we are stepping up to provide support, as we did during the pandemic. This year alone, we are increasing core schools funding by £4 billion compared with 2021-22. That is a 7% per-pupil boost in cash terms that will help schools to meet the pressures that we know they face, especially in respect of energy costs and pay.

I recognise the strength of feeling when it comes to our childcare system. We want families to benefit from the childcare support they are entitled to, thereby saving them money and helping them to give their children the best start in life. I am proud to be part of a Government who have extended access to early education and childcare to millions of children and parents over the past decade.

In 2013, the Conservative-led coalition Government introduced 15 hours of free childcare for disadvantaged two-year-olds. So far, this has helped more than 1 million children to get a much-needed boost to their early education. To ensure that all children are ready for school, all three and four-year-old children continue to be eligible for 15 hours of free early education a week, and nine out of 10 took up the entitlement last year.

In 2017, the Conservative Government announced 30 hours of free childcare for working families, to save families up to £6,000 a year. Because of that, thousands of parents have been able to return to paid work or increase their hours, while saving thousands of pounds a year. We have also introduced tax-free childcare, which provides working parents with up to £2,000 of support to help with childcare costs for children under the age of 12. With universal credit, parents can claim back 85% of eligible childcare costs, compared with 70% under the old system.

We invest a significant amount of funding in early education and childcare, including more than £3.5 billion in each of the past three years on early education entitlements for two, three and four-year-olds. In 2022-23, we have increased the hourly funding rates for all local authorities—by 21p per hour for the two-year-old entitlement and, for the vast majority of areas, by 17p per hour for the three and four-year-old entitlement.

[Stella Creasy]

rose—

[Mr Walker]

I give way to the hon. Lady one more time.

[Stella Creasy]

Many parents listening to the debate might have a simple question for the Minister: what does he expect them to do with a child who is under the age of two, so that we do not see women in particular having to leave the workforce because no employer is going to wait two years for them to have childcare?

[Mr Walker]

The hon. Lady raises an important point. As the parent of a nine-month-old, I definitely recognise the challenge. [Interruption.] The Under-Secretary of State for Education, my hon. Friend the Member for Colchester, refers to the support that is available through tax-free childcare and universal credit, but of course we recognise the challenge. I have to say that I do not see anything in Labour’s plans that would fix it.

To support childcare for families with school-age children, the Government are investing more than £200 million a year in our holiday activities and food programme. The programme provides free holiday club places, with healthy meals, enriching activities and free childcare, to children from low-income families, benefiting their health, wellbeing and learning. Last summer, our programme funded free holiday places for, in total, more than 600,000 children and young people in England, including more than 495,000 children who were eligible for free school meals. That means that hundreds of thousands of children from low-income families are benefiting from healthy food and extracurricular activities, thereby helping to level up children’s educational outcomes, provide better nutrition and improve their wellbeing, behaviour and social skills.

The Government are continuing to invest more than £200 million a year in the holiday activities and food programme, with all 152 local authorities in England delivering the programme. We are also committed to continuing support for school breakfast clubs. The Department for Education is investing up to £24 million to continue its national school breakfast programme until July 2023. This funding will support up to 2,500 schools in disadvantaged areas, which means that thousands of children from lower-income families will be offered free nutritious breakfasts to better support their attainment, wellbeing and readiness to learn. The enrolment process is still open to schools that wish to sign up to the national school breakfast programme.

We recognise that we must ensure that childcare works the best it can for families’ lives now. The Government are committed to continuing to look for ways to improve the cost, choice and availability of childcare. With safety and quality at the heart, as a first step we will consult on ratio requirements by the summer to give providers more flexibility and autonomy to make decisions about their settings and the needs of their children. We will continue to work across Government to ensure that parents are given the information that they need to access support from tax-free childcare, universal credit, and other entitlements. We will actively consider how we can ensure a sufficient supply of childminders, giving more parents access to an affordable and flexible type of childcare, as well as creating further flexibilities to enable parents to be able to spend Government funding on childcare that best meets their need.

The Government are committed to helping families and giving every child the best start in life, and we back that with significant investment at the spending review. We are investing £695 million in the Supporting Families programme to provide targeted support to 300,000 of the most vulnerable families. We are also providing a further £600 million for activities and healthy food for children in the school holidays, and we are delivering on our manifesto commitment to champion family hubs. Family hubs bring together services for children of all ages. We will invest £302 million to transform Start for Life and support local authorities to create the network of family hubs in 75 local authorities across England.

I am proud of our record in supporting children and young people both before and during the pandemic. The Government have ensured that supporting our children and young people is at the heart of our recovery plans, with the latest evidence suggesting that real recovery is taking place. Those on the Labour Front Bench have no plan other than to keep promising more of other people’s money. Nowhere in their proposed plans are detailed costings of their proposed interventions on childcare. We will continue to follow the evidence and provide investment where it makes the greatest difference.

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[Stella Creasy (Walthamstow) (Lab/Co-op)]

I am delighted that we are having this debate today, because, frankly, it is long overdue. Indeed, in the past couple of years, this place has debated wind turbines more than it has debated the future of childcare in this country. We can all make the jokes about hot air, but the reality is that our children deserve better.

I want to focus my remarks particularly on this question about childcare costs. According to the TUC, one in three parents with pre-school children are spending a third of their pay on childcare. The cost of a full-time nursery place for a child under two—those children whom we do not seem to know what to do with—has risen £1,500 over the past five years. The honest truth is that these challenges are not about the pandemic. They pre-empted the pandemic; they have been exacerbated by the pandemic.

Our childcare system is more dysfunctional than the Home Office. We have to ask ourselves what we can do to fix it. Having the debate is the first step. Again, I want to declare that I am a big fan of the “Derry Girls” and “Countdown”, but we have spent more time, particularly in the Queen’s Speech, thinking about privatising Channel 4 than we have about sorting out childcare.

Childcare in this country does not work for the children, especially if they are aged under two, because they do need more than a packet of crisps and a pint of coke during the school holidays. Parents face bills running to hundreds of pounds a week for at least the first two years, often pricing all but the wealthiest out of the workplace. Children from disadvantaged backgrounds feel the pinch most of all. They are already 11 months behind their peers when they start primary schools because many of them cannot be in childcare to get that early years learning that we all said is so important. We know that that has got worse during the pandemic, with 76% of schools reporting that that cohort of children—the children from the poorest backgrounds—needed additional support compared with the pre-pandemic cohorts.

Even when the Government do invest in childcare, it does not get any better, particularly if parents have a child who might need care during the school holidays. Parents are spending over £800 a year more for after-school care than they did in 2010, with the average family spending more on these activities than they do on their weekly shop. Little wonder that this childcare system does not work for parents or for employers, who are losing talent from our economy at a rate of knots. Some 40% of mothers have said that they had to work fewer hours than they would have liked because of childcare costs, and that figure rises to more than half of women in households on incomes of less than £50,000.

This weekend alone, we saw evidence of a jump of 13% in women aged 24 to 35 not working in the past 12 months. It does not take a rocket scientist to work out who those women are, but it does take a Government who want to prioritise families—I say families, because we know that dads are getting a raw deal too. The mums are disappearing and the dads cannot be there for their kids as they want to be either.

The uptake of paternity leave in this country has dropped to a 10-year low, with only one quarter of new dads choosing to take it. Let us be clear what they are taking: two weeks. Anybody who has had a new-born knows that it takes a lot longer than two weeks to work out what on earth to do with it. Just 27% of eligible fathers are taking up that offer of just two weeks’ paid leave, down from 170,000 in 2021, compared with 650,000 women who took maternity leave, although many of them then faced the discrimination of not being able to return to work. That is a loss of 100,000 men compared with those who took paternity leave in the previous year. The number is falling.

A separate study by the Chartered Institute of Personnel and Development showed that more than three quarters of men feel there is a stigma to taking just those two weeks to care for their children, let alone asking for flexible working. Where does that stigma come from? I do not know. Maybe somebody could leave a note on my desk to tell me why caring for children and wanting to have a career is a bad thing.

Employers want to be able to offer these things, because employers and businesses are ahead of the Government here. They know that offering flexible working, helping families to work and have a career but also be able to care for their children, is one reason why many of their employees stay with them.

The current situation does not work for Government or those running nurseries—those heroes we all know who look after our children. National Day Nurseries Association data shows that the Government is the biggest purchaser of places, but they are frankly short-changing the industry hand over fist. Providers are making a loss of £2 an hour on every Government-funded child they take, forcing them to cut their margins, underinvest in staff and overcharge other families to try to make ends meet.

Even when childcare is subsidised, it does not work. The estimated shortfall in funding for a three or four-year-old is more than £2,000 a year, and it is nearly £895 a year for a two-year-old. Little wonder so many nurseries are going out of business and childcare is increasingly becoming an indulgence of the middle classes, rather than part of the infrastructure of an effective economy.

In this debate, it is parents who we do not hear from in this place most of all. I pay tribute to the amazing work that Joeli Brearley and Pregnant Then Screwed, and people such as Anna Whitehouse at Mother Pukka, are doing in giving a voice to real parents. These are genuine comments I have had in the past week alone:

“Nursery fees for two kids cancel out my whole wage. My employer is consistently in the top 10 global best employers (they are great) so if I can’t make it work, god knows how others do.”

“All my wage goes on childcare for two days a week, which works out at the same price as rent for a flat.”

“I’m a teaching assistant. My monthly nursery fee for 4 days a week is £300 more than my entire monthly salary—I’m lucky to have a supportive family who help me with some of the cost, otherwise I wouldn’t be able to work. I’m trying to complete my teaching degree, make a career for myself and support my child, but my god do this government make it so hard!”

“£1870 a month for 5 days a week for me to pay childcare to return to work. More than I earn!”

“This summer it’s going to be a nightmare trying to work and find affordable childcare for an 11-year-old, 5-year-old and 3-year-old.”

“I attempted to re-enter the workforce once my twins were in reception—I had to give up as there was no childcare provision during the summer holidays of 2021. I wasn’t expecting to still be at home when the children were 7.”

“No one warns you or helps you pay £2,400 per month in childcare so that you can go back to work. I’ve always been a career woman, so why should we have to choose?”

“I have returned to work 4 hours a week to fit around my partners working hours. If I returned to my normal hours I would take home less than £10 a day, minus the cost of petrol. Totally ridiculous that there is no help until the age of 3.”

“Cheapest nursery I found within walking distance of my flat was £1603 a month!”

“The worst thing about this is that it is seen as the status quo. A justification for pregnancy and parental discrimination. So we get hit twice. No career and blamed for it too. I now work freelance and when I was hired by a client in the same profession for private work, they had assumed I had left an office to start a family.”

The truth, though, is that those experiences are not the worst thing—the worst thing is that investing in childcare is not a loss leader; it is a benefit to our economy because of the increase in tax take, the lower universal credit that is paid, and the equality, prosperity and productivity it brings to us all. Free universal childcare from the end of parental leave to the start of school would bring £25 billion extra funding into the Exchequer through those factors. That would cover 90% of the additional cost outright. But instead of investing, we have a Government murmuring about trying to cut corners by tweaking childcare ratios. I say to the Minister—he and I have children of a similar age—that, if he wants to take five kids of that age at the same time, I will happily lend him mine so that we can see just how possible that is. Our economic competitors recognise that this is the wrong way round as well. Some people claim that they have higher ratios, but we already have higher staff to child ratios than other similar countries. We have 13 children for every staff member in pre-school compared with six children in Sweden and eight in the Netherlands.

As I said, there is money to spend on childcare, but this Government are not spending it. It is our money as taxpayers. Those tax credits could be a valuable part of helping parents to make ends meet when it comes to childcare. The Government are not telling people that they are entitled to tax credits, yet the Government got back £2.8 billion alone last year in unclaimed childcare tax credits. If the Minister needs people behind him to go to the Treasury to demand that money back, I am with him, because that money alone would pay for 500 million hours of childcare as a first step towards having a universal system. But I do not hear any evidence that the Department is going to claim our tax money back so that our children can have that childcare.

The truth is that we cannot solve the cost of living crisis without solving the cost of childcare. We cannot have a productive economy unless every single talented person can make the right choice for their family about working life. A party cannot claim to be the party of the family when it is abandoning particularly mums but dads too. The Minister knows that he could have support to do this, but we need it to be a priority, even more so than saving “Derry Girls” and putting up the wind turbines.

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[Will Quince]

I may not agree on that particular point, but where I do agree with the hon. Lady is that the take-up of tax-free childcare is far too low. I am looking very closely at that and at what more we can do as a Government to promote it. I would certainly encourage all Members from across the House to promote our childcare offer more generally, of which tax-free childcare is only one part.

More broadly on the point about childcare, I will say this: I have two young children, and I get it. They have both been through nurseries and childminders, and I understand the costs. I know that many parents up and down our country are paying as much, if not more, than their rent or their mortgage on childcare costs. We are very much committed to ensuring that all families get the support they need when they need it.

We are already supporting families and investing to support the cost of childcare. We are offering free childcare to every three and four-year-old—that is the 15 and then the 30-hour offer. We are providing free childcare to disadvantaged two-year-olds—that is the 15-hour offer. We are cutting the cost of childcare for working parents through our tax-free childcare offer, which I have just mentioned to the hon. Lady, and of course paying up to 85% of the childcare costs for those on universal credit, supporting the families who need it most. In total, that comes at a cost of £5.1 billion.

[Stella Creasy]

Obviously, “Frozen II” has many lessons that we all need to follow, but one is not just to “Let It Go” but to be truthful to yourself, so can the Minister clarify this? He said he did not agree with the figures I cited from the National Day Nurseries Association, which has been looking at the impact of the subsidy, but he has just said how much money it costs.

Obviously, many parents would say to him that 15 hours’ or indeed 30 hours’ free childcare is not the childcare they need in order to maintain their jobs. Is he saying that the Government believe that the money they are currently providing fully covers the cost of childcare? If he does not think there is a £2,000 differential between the cost of childcare for a three-year-old and what the Government are paying, what does he think the gap is?

[Will Quince]

I thank the hon. Lady for her intervention, and I will come on in just one moment to exactly the funding we are putting into childcare. However, in total, it is £5.1 billion. On the free entitlements alone—the entitlements the hon. Lady references—it is £3.5 billion.

I know that there is more we need to do, and that is why I am working across Government to take a renewed look at the childcare system, finding ways to improve the cost and availability of childcare and early education for families across England. We do have some of the very best early years provision in the world, and I will continue to be hugely ambitious for working parents, ensuring flexibility and reducing the cost of childcare wherever we can.

A number of hon. Members across the Chamber during this debate have raised international comparators, which are of course important. So far, I have visited the Netherlands, and I will be visiting Sweden and France. I hope to visit more because it is very important that we take an evidence-based approach to this issue and look at the international comparators. [Interruption.] On day trips, I hasten to add, on the Eurostar—these are certainly not jollies. We are very much looking at the evidence and ensuring that we get it right. It is a hugely complex issue.