Government’s Childcare Expansion

Stephen Morgan Excerpts

Thursday 17th October 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Education (Stephen Morgan)]

With permission, I will make a statement on the Government’s plans to deliver additional places in school-based nurseries, and a clarification on Government action on so-called top-up fees for funded childcare hours. I will also update the House on the Government’s response to the consultation on safeguarding requirements in the early years foundation stage framework.

The Secretary of State has promised a new era of child-centred government, working alongside the sector to deliver meaningful long-term reform of the early years system. The Government believe that all children deserve access to a brilliant early education, regardless of who they are, where they come from or their parents’ income. Today marks a significant step for thousands of families, as we begin the first stage of the Government’s plan to deliver 3,000 new or expanded school-based nurseries. From today, primary schools can apply for a grant of up to £150,000 from a £15 million capital funding pot to make the changes needed for their site to accommodate a nursery.

The new or expanded nurseries are set to open across England from the start of the next school year. We have chosen to expand school-based nurseries because schools are at the heart of our communities. School-based nurseries cater for a higher proportion of children with special educational needs and disabilities, and offer a higher share of nursery places in the most deprived areas. To support our most vulnerable children and build on the existing market, the funding will be available for projects that are either school-run or delivered on the school’s site by private and voluntary providers or childminders. Schools will be asked to work with local authorities to demonstrate local parental demand for places. If there are primary schools that are interested in this programme but are not currently ready or eligible to host new nursery places, we encourage them to register an interest for the future. We expect funding to be allocated to successful schools in spring 2025 to support delivery of the first nursery places from September 2025.

As we expand the childcare system, it is crucial that early education and childcare remains fair and accessible to all parents. That is why we are taking action to address situations where parents are facing high and additional charges on top of the funded entitlement hours. Those charges, which may include mandatory fees for nappies, lunch, or additional hours, should not be a condition for accessing a funded place. The vast majority of providers are working hard to make sure that parents can access their entitlements, but any sort of mandatory additional charging or preferential treatment towards parents who purchase optional extras is not acceptable. Over the next few months, my Department will engage with local authorities, providers and parents to develop and clarify guidance on this issue, including on so-called “top-up fees”. We will support local authorities to protect parents from overcharging.

I turn to new childcare entitlements. In September, working parents of children aged nine months and above were able to access 15 hours per week of Government-funded early education for the first time. I can confirm that over 320,000 additional children are now accessing the new entitlement. Delivering the scheme has not been without difficulty and owes much to the collaboration between local authorities, providers and the work of my right hon. Friend, the Secretary of State, who has made ensuring the roll-out a priority. At the same time, we are helping the sector to deliver the necessary places for September 2025. This final, more challenging phase of the roll-out will increase the funded childcare entitlement of working parents to 30 hours per week.

Trust matters in politics, which is why I want to reiterate this Government’s commitment to honouring the promise made by the last Government to deliver these entitlements, but the House should be in no doubt that this will be an extremely difficult task. There remains a significant shortage of staff and places. The Government’s spending watchdog has said that, in order to deliver the roll-out, in some parts of the country we will need to double or even triple capacity in order to provide the additional hours. There are substantial gaps to fill, left behind knowingly by the Conservative party. We must be honest with families about the fact that in some parts of England, while parents may receive the hours they were promised, they may not get their first choice of nursery or childminder.

I assure the House that we will continue to work tirelessly to bridge the gaps in time for next September, and our plans to expand primary school-based nurseries will help us to deliver these entitlements. Our priority is to provide high-quality education and care for children while ensuring their safety, in order to give every child the best start in life.

Today the Department published its official response to the consultation on proposals to strengthen safeguarding requirements in the statutory early years foundation stage framework. These reforms are set to be implemented from September 2025. The changes to be made to the framework are based on lessons learned from tragic past events, responses to our consultation, and feedback from safeguarding experts and the sector. The consultation received 1,470 responses, with strong support for all the proposals. The Department will therefore implement all the proposals, including those on safer recruitment, child absences, safer eating, safeguarding training, and paediatric first aid training. There will also be new proposals on providing employment references and supporting whistleblowing. These changes will formalise existing best practices, and will ensure that all early years educators have the knowledge and support that they need to deliver safe, high-quality early education and childcare.

As many parents know, childminders are a key part of the early education and childcare market, providing choice and flexibility. We are already delivering childminder start-up grants to help new childminders with the costs of registering, and on 1 November we will introduce new flexibilities for childminders to help them join and stay in the profession. These changes will create a new category of childminder who can work entirely from non-domestic premises. The total number of people who can work together under a childminder’s registration will increase from three to four. Childminders will also have more flexibility to operate for more time outside domestic premises, for instance from a community hall or school. These new flexibilities will further support the Government’s commitment to rolling out expanded childcare entitlements and giving children the best start in life.

Parents’ need for childcare does not stop when their children reach primary school age. Since July, we have allocated more than £130 million to local authorities to begin delivering these new places to parents of primary school age children as part of the national wraparound childcare programme. Initial delivery plans indicate that this programme will deliver up to 200,000 new childcare places, at either end of the school day, available in over 50% of all primary schools. However, we want to go further to support hard-working families and tackle disadvantage, which is why we committed ourselves in our manifesto to introducing free breakfast clubs in every primary school.

Breakfast clubs can have a tremendously positive impact in helping children to arrive at school on time and ready to learn, while also helping working parents to have more choices in the workplace. From April 2025, free breakfast clubs will be available in up to 750 early adopter schools. That will be part of the test-and-learn phase, but new breakfast clubs, once rolled out nationally, will be available to every state-funded school with primary school age children, and will give parents more affordable childcare choices while also helping families with the cost of living. Children will be able to start the school day ready to learn, which will give them the best start in life and in their education.

This Government are determined to break down barriers to opportunity. That must start before school, with high-quality early education that is both available and affordable. We inherited a pledge without a plan, so this Labour Government must work to deliver the change that families need. We will deliver places in new nurseries, tackle unfair “top-up fees”, and ensure that every child can have the best start in life. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I should explain to newer colleagues that interventions are not made during statements by Ministers or responses from shadow Ministers. I now call the shadow Minister to respond to the Minister’s statement.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

I thank the Minister for giving me advance sight of his statement.

Labour Members may take this opportunity to create a fictitious narrative about the alleged failures of the former Government on early years and childcare, but it will not wash with us and it will not wash with the British public. That is simply because our record on childcare is strong, so let me take this opportunity to remind the Government and the House exactly what it is.

In 2010, we extended the three and four-year-old entitlement, commonly taken as 15 hours a week for 38 weeks of the year. In 2013, we introduced 15 hours of free early education a week for disadvantaged two-year-olds. In 2017, we doubled the three and four-year-old entitlement to 30 hours per week for working parents, as well as introducing tax-free childcare, which meant that for every £8 people paid in, the Government would automatically add £2 to support childcare costs—on top of the free-hours entitlement. In March 2023, we announced the biggest expansion of childcare by a UK Government in history. It was intended to give working parents access to 30 hours of free childcare a week, from when their children were nine months old until they started school, and to save families an average of £6,900 a year. Our reason for doing that was simple: childcare is one of the biggest costs facing working families today, as well as one of the biggest barriers to parents returning to work if and when they wish to do so. I want to take this opportunity to thank early years providers, local authorities, membership bodies, and other key partners who have made delivering this possible.

I welcome the fact that the Government have finally agreed that rolling out our childcare expansion will empower parents to make the choice that is best for them, and are committed to doing so. I am, however, disappointed that they did not do more to spread awareness among parents of the childcare entitlements that became available in September. Will the Minister tell us whether there was any unspent budget for this, and will he now commit himself to increasing the publicising of childcare roll-outs so that parents are rightly aware of their entitlements?

Of course the Opposition welcome the expansion of childcare and support the idea of utilising unused space in schools, which provides a single point of contact for parents with multiple children, but will the Minister tell us how many childcare places the first 300 new or expanded nurseries will provide? The Government previously pledged to deliver 3,000 nurseries to support 100,000 childcare places. What will be the timeline for the delivery of the rest of those nurseries, and are the Government still committed to the creation of 100,000 childcare places across the country in the long term?

The Education Secretary has confirmed that early years and childcare are her No. 1 priority, which I wholeheartedly support. However, the Government’s education tax will mean that children in classes in which one child is five years old, or is due to turn five by the end of the year, will be subject to the Government’s retrograde education tax regardless of their age. Will the Minister confirm that that is indeed a broken promise? How can the British public trust the Education Secretary’s word that she will prioritise early years and childcare when she has already broken a promise within the first 100 days of a Labour Government?

[Stephen Morgan]

I thank the shadow Minister for his response, and welcome him to his place. I know that he will want to be a keen champion for the early years sector, and I was glad to hear him welcome the update that I have given to the House.

As I said in my statement, Labour is committed to the delivery of expanded entitlement across Government. The last Government left significant challenges, but we are not shirking that responsibility. With Labour, the early years sector can rest assured that we will be working tirelessly to deliver a wider sea change in early education, as well as high and rising standards throughout the education system.

Let me now deal with some of the hon. Gentleman’s specific points. It is clear to me from my consultation and engagement with parents and providers so far that we have inherited a pledge without a plan, and the consequences of that are inherited delivery challenges relating to workforce and places. I appreciate the points that the hon. Gentleman made about the workforce; I believe by resetting the relationship with the workforce, we can have a much more positive relationship with the sector in the future.

Over 300,000 children have benefited from the entitlement offer since September this year, which demonstrates that we are actively engaging and working with parents to promote opportunities to take up the offer. We will continue to do so.

On school-based nurseries, the pilot during the testing phase is for 300 places from April. Our ambition is for 3,000 places over the course of this Parliament. I look forward to working with the hon. Member constructively to bring about the change that early years education so desperately needs.

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

I thank the Minister for all the work he is doing to right a much overdue wrong. It is extraordinary to hear the shadow Minister trying to claim credit for something this Government have finally done today, putting to rest the concerns that many of us tried to raise with the previous Government. I thank the Minister for being honest enough to finally publish the data about the numbers of people we need working with our children to make these plans happen. The previous Government always avoided the question and now we can see why, because the data shows that we will need an extra 35,000 people working in our childcare sector by autumn next year to fulfil all our pledges, and an extra 6,000 by the end of this year. Will the Minister tell us more about his workforce strategy? We take our hats off to the people who look after our children. I know this Government want to invest in them, but we need a lot more of them. What can we do to make that happen?

[Stephen Morgan]

I thank my hon. Friend for her tireless work speaking up for children, young people and parents up and down the country. As she rightly says, we are working hard with the early years sector to recruit the staff we need, including through the extended recruitment campaign Do Something Big, so that we attract more people to work in the early education system and ensure there are good training pathways into careers in early education. We are resetting relationships with staff across the education sector to ensure they are respected and valued for the important work they do. School-based nurseries currently have lower turnover and have the option to use some staff flexibly between reception and early years in primary schools. I am looking forward to cracking on with delivering on those commitments.

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson, who has two minutes.

[Ian Sollom (St Neots and Mid Cambridgeshire) (LD)]

I am suffering because of the length of time that my hon. Friend the Member for Eastbourne (Josh Babarinde) took earlier. I will try to stick to two minutes, Madam Deputy Speaker.

I thank the Minister for sight of his statement. The Liberal Democrats believe that flexible, affordable childcare and early years education is a critical part of our society. High-quality early years education is the best possible investment in the future and contributes to economic performance in the present as well. Most importantly, it is the most effective way to narrow the gap between rich and poor children.

Broadly, we welcome the Government’s promise to expand access to affordable childcare and early years education. Under the previous Government, we saw what happens when big promises on childcare are not backed up by the funding and resources needed to deliver them. The Conservative Government’s plans risked exacerbating the problems that parents already faced: a lack of childminder places and eye-watering fees.

The number of childminders in England fell by an estimated 26% between 2018 and 2023. Last year, a report found that 35% of nursery managers would limit the number of places they offered unless the Government helped with recruitment. I note from the Minister’s statement that the Government are taking steps to improve recruitment and retention in the childcare and early years sector, but does the Minister agree that a career strategy is also needed for those working in early years, including a training programme, so that all those working with young children are properly trained and supported? Will he give assurances that the places announced today will be properly supported by committing to a full review of the rates paid to providers for free hours, to ensure they cover the actual costs of delivering that high-quality childcare?

[Stephen Morgan]

I thank the hon. Member for his statement and welcome him to his place. As he identified, there are some core challenges for the early years sector in delivering the Government’s agenda to expand childcare entitlement. As I made clear in my statement, today’s announcement sets out key steps we are looking to take to deliver for children and ensure that they have safe, supported systems to help them succeed in life. I know that he will support our ambition of ensuring that every child, no matter where they come from, can succeed in life.

The hon. Member was right to focus on disadvantage, which is a key priority for me as a Minister. If we are serious about breaking down barriers to opportunity, we need to think about the impact of the scheme on the most disadvantaged in our society. The number of childminders involved in the system has halved over the years; we want to reset that relationship. The new flexibilities announced today will make a big difference. Finally, he will appreciate that funding is a matter for the spending review.

[David Burton-Sampson (Southend West and Leigh) (Lab)]

I thank the Minister for finally bringing forward a realistic plan for expanding childcare. Residents, and certainly parents, in Southend West and Leigh will welcome the announcement. Will he provide assurances that childminders, who are a vital part of childcare arrangements, will still be a key focus? Will he give a further idea of how they will be supported?

[Stephen Morgan]

Childminders are a key part of the childcare market, providing more choice and flexibility for parents. From next month, the Government plan to implement new flexibilities to help childminders join and stay in the profession. That will include enabling childminders to work from non-domestic premises, as I mentioned in my statement, and increasing the number of childminders who can work together; that will improve children’s access to new experiences out of the home and encourage socialisation. As we seek to deliver a sea change in our approach to early years, we want partners, including childminders, to work closely with us to push for better.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

There are countless millions of free childminders available. The love between a grandparent and a grandchild is the purest love: love without responsibility. I declare a personal interest. Will the Minister assure me that he will incentivise grandparents to look after their grandchildren, and that nothing in the tax or benefits system will discriminate against mothers who want to look after their children full time? Will he build on the Conservatives’ scheme of transferrable allowances?

[Stephen Morgan]

Families have an important role to play in supporting children in the first few years of their life. We are committed to breaking down barriers to opportunity for every child, in every part of the country, and our childcare system has a key role to play in that.

[Shaun Davies (Telford) (Lab)]

As a former school governor and a dad, I see the amazing work that preschools and nurseries do up and down the country. These measures will be a key way to break down barriers to opportunity and get the country growing, as the Minister says. Will the Minister commit to ensuring that children in care and the children of those in the armed forces are prioritised for the additional care places? Will he reassure childminders that we are on their side, because childminders in Telford have missed the memo from the Government on this set of improvements?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I remind hon. Members to ask short questions.

[Stephen Morgan]

Since joining the House, my hon. Friend has already become a champion for children and young people in his constituency. He raises a number of points—about childminders, support for children in care, and military families. As I represent the heart and home of the Royal Navy, I take those matters very seriously. I will certainly consider the points that he raises as we design a system fit for the future.

[Greg Smith (Mid Buckinghamshire) (Con)]

I am incredibly proud of the previous Government’s massive expansion of the childcare offer, and I am genuinely pleased that the new Government are carrying on with it. When it comes to the expansion of in-school nurseries, what mechanism will be put in place to ensure that rural communities, like mine in Mid Buckinghamshire, get a locked in, fair share of those new facilities?

[Stephen Morgan]

Our party wants to govern the whole country. In the election in July, we won many rural seats, and we will take the views and ambitions of rural communities seriously. If the hon. Gentleman wants to raise particular points with me to ensure that the roll-out works well in his constituency, I am very happy to meet him to discuss those issues.

[Alistair Strathern (Hitchin) (Lab)]

With so many families struggling to find affordable childcare across my Hitchin constituency, I really welcome the Minister’s announcement today, and I will encourage local schools to take part in the pilot scheme. I particularly welcome the focus on the exclusionary nature of top-up fees. Those fees run counter to the nature of the scheme, and all too often leave those most in need of affordable childcare unable to access it. Will the Minister assure us that as he takes the vital, robust action needed to clamp down on top-up fees, he will work with the sector more widely to ensure the viability of providers, who were all too often left on the brink by the previous Government’s mismanagement of childcare?

[Stephen Morgan]

I thank my hon. Friend for his question. I have heard that message loud and clear from parents in constituencies up and down the country. Where providers seek to put up fresh barriers to access, we will not tolerate them. We will make guidance in this area as clear and consistent as possible to support hard-pressed families as we deliver this sea change in early years provision.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for this welcome news. Within seven months, my party colleagues in Northern Ireland have designed a scheme to slash childcare bills by 15%, saving parents up to £660 per month. The Northern Ireland childcare subsidy scheme has saved parents about £1 million in the month of September alone. Some 13,000 children signed up in the first four weeks. That is DUP delivery. Does the Minister have any plans for implementing greater support on a UK-wide basis, so that better communication and better partnership can blossom and grow?

[Stephen Morgan]

I always enjoy responding to questions from the hon. Gentleman. On my visit in April to Belfast, I heard that childcare is a huge issue for the community. I assure him that there is more we can do to support our colleagues in Northern Ireland. We have already committed to a meeting with the relevant Minister to discuss these issues.

[Darren Paffey (Southampton Itchen) (Lab)]

I thank the Minister for his statement and welcome these measures, which will do an awful lot to help hard-pressed families in my constituency. Does he agree that the Conservatives suffer from something of a blind spot in looking back at their record, which contains years in which funding fell short of the delivery costs? They ignore the exodus of early years professionals and the fact that 1,400 Sure Start centres have been closed, yet they continue to believe that we have never had it so good. Will the Minister join me in thanking early years professionals in Southampton Itchen, who can finally count on a Government who are child-centred, and could he outline how these measures will be targeted at so-called childcare deserts?

--- Later in debate ---

[Stephen Morgan]

I thank my hon. Friend for his question and congratulate him on being selected for the Select Committee. I agree that we should be shocked by the Conservatives’ response to today’s statement. This Government are focused on the issues that make the biggest difference to working people across the country, so that we can deliver the change we need. Today’s announcement is an example of how we will go about doing that. I am very keen to meet my hon. Friend to discuss these issues further, and I appreciate his thanks to those in the sector for the hard work that they do in his constituency.

[Oliver Ryan (Burnley) (Lab/Co-op)]

I hugely welcome the news about funding for schools, children and parents, and for school-based nurseries in particular. I hope the Minister will look fondly on applications from Burnley, Padiham and Brierfield in due course. I wonder whether he thinks that the capital allocation in the statement is sufficient for his ambition. Does the Minister agree that this Government are delivering on their promises within their first 100 days?

[Stephen Morgan]

I thank my hon. Friend for his question. I am absolutely delighted to hear of his enthusiasm for the scheme, which will make a huge difference to communities up and down our country. We are starting a test-and-learn phase in April; the roll-out will be in September. We want to learn from that approach, and I would be delighted to work with him on this matter.

[Markus Campbell-Savours (Penrith and Solway) (Lab)]

I strongly welcome the proposed expansion of childcare, which I am sure will help many families in my Penrith and Solway constituency. Can the Minister outline how this measure will be targeted at the areas of the country with the greatest need, and at areas that are considered to be childcare deserts?

[Stephen Morgan]

We are absolutely committed to being a child-centred Government, and it is vital that we deliver the programme in the areas in most need. That means making sure that we understand where there are gaps in places and in the workforce, and we look forward to working closely with the sector to ensure that the scheme makes the biggest difference in communities that need it the most.

[Mr Luke Charters (York Outer) (Lab)]

This announcement is particularly fitting, as my son started preschool today. Many hard-working parents in York Outer welcome today’s news, but many feel that some providers are taking the biscuit when it comes to funded hours, abnormalities, unfair top-up fees and even restrictions on the days of the week on which funded hours can be used. Will the Minister meet me so that I can pass on York Outer parents’ concerns about the funded hours scheme?

[Stephen Morgan]

I am very happy to meet my hon. Friend, and I wish his son good luck as he starts nursery today.

[Adam Jogee (Newcastle-under-Lyme) (Lab)]

I have sore calves after this morning, Madam Deputy Speaker. A child-centred Government are exactly what people in Newcastle-under-Lyme want, but the disgraceful state of special educational needs and disability provision in our schools means that we have more to do. How does this announcement, which I welcome, sit alongside our commitment to overhauling the SEND system?

[Stephen Morgan]

I thank my hon. Friend for his question. We are reviewing the early years SEND funding arrangements to ensure that they are suitable for supporting the needs of children with SEND. For children with more complex needs and an education, health and care plan, funding is available via the high needs block of the dedicated schools grant. Local authorities should have SEND inclusion funding for children with low and emerging needs. Disability access funding is also designed to support disabled children’s access to entitlements.

[Andrew Cooper (Mid Cheshire) (Lab)]

We can probably all agree that every child should have the opportunity to reach their full potential, regardless of their background and circumstances, who they know and where they come from. None of that should shape people’s lives more than their talent, creativity or determination. I welcome the emphasis on the importance of early years provision. Particularly in these years after the pandemic, measures such as early speech and language interventions can make all the difference. Does the Minister agree that now is the time to take early years provision seriously?

[Stephen Morgan]

I thank my hon. Friend for his question; he is absolutely right. The pandemic had a huge impact on children’s lives, and our investment in early interventions around speech and language is absolutely key. I look forward to working with him to deliver that successfully in his constituency.

[Madam Deputy Speaker]

The final zinger of a question is from Josh Simons.

[Josh Simons (Makerfield) (Lab)]

We’ll see! I am intrigued to hear Conservative Members’ attempts to defend their record. Moments ago, the hon. Member for Christchurch (Sir Christopher Chope) said that the right hon. Member for North West Essex (Mrs Badenoch) is “preoccupied with her children” and cannot be the Leader of the Opposition while spending time with her family. This comes after she herself said that maternity leave has “gone too far”. Does the Minister agree that whereas this Government are working hard to back the hope that children represent, Conservative Members are, in the end, the same old Tories?

[Stephen Morgan]

I thank my hon. Friend for his question. Early years provision was cast off under the Tories, and we are bringing it back into the fold as a crucial part of our education system. We are committed to giving every young person the best start in life, and I look forward to working with him to make that happen.