Child-care Ratios

Stephen Twigg Excerpts

Thursday 9th May 2013 Commons Chamber

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Education to make a statement on the Government’s plans for changes to statutory regulations for child-care ratios.

[The Parliamentary Under-Secretary of State for Education (Elizabeth Truss)]

The Government announced in January, in the “More great childcare” document, the intention to give nurseries more flexibility over staff-child ratios where they employ suitably qualified staff. We have consulted on what those qualifications should be. The consultation closed at the end of March. We are now considering the responses and will make further announcements in due course.

The current system of child care is not working for parents. Too many parents in the UK are struggling to juggle their work and child care arrangements. Families in England pay some of the highest costs in the world, with 27% of their income going on child care, compared with 11% in countries such as France. We also know that this Government spend more than £5 billion on child care, which is twice the OECD average, and as much as countries such as France and more than countries such as Germany. As well as our new schemes, such as tax-free child care, we need to ensure that we get better value for money for the investment that the Government put in, so we are looking at other countries, such as France, Ireland, Holland and Germany, which manage to combine high quality and affordability in their child care provision.

At present, we have the tightest ratios in Europe for children under three. We also have the lowest staff salaries. Nursery staff here earn £6.60 an hour on average, which is barely above the minimum wage. Annual earnings are £13,000, which is well below the averages of £16,000 in France, £20,000 in Denmark and £22,000 in Sweden. The ratio for two-year-olds in England is 4:1, whereas it is 6:1 in Ireland, 6:1 in Germany and 8:1 in France, while in Denmark and Sweden—countries that the shadow Secretary of State has explicitly advocated—there are no national staff ratios at all.

Our proposals will allow nurseries that hire high-quality staff to exercise professional judgment. This is exactly the same concept that we have used in academies, giving high-quality institutions the autonomy to make decisions for themselves and to exercise professional judgment. The ratios are not compulsory. This is about professionals in the child care sector being able to exercise their judgment and to deliver an affordable, high-quality service to parents. Our evidence suggests that—[Interruption.] Well, the Department for Education economists have looked at this in detail, and our evidence suggests that nurseries will be able to pay higher staff salaries and reduce costs to parents.

Let us remember the legacy of the previous Labour Government. The real cost of child care, which every family in this country faces, has risen by 77% in real terms since 2003, and child care inflation is going up by 6% every year. If we do not do something about this by reforming the supply of child care, it will become prohibitively expensive and many parents will not be able to afford to go out to work. We also want to encourage more providers to use the higher ratios for three and four-year-olds and to hire high-quality staff. All the international evidence from organisations such as the OECD suggests that the higher the quality of the staff, the better the outcomes for children. The previous Labour Government have admitted that, during their period of office, they got this wrong. The number of childminders halved, child care costs doubled, and Beverley Hughes, the former children’s Minister, admitted that Labour had got it wrong.

[Stephen Twigg]

Well, yesterday we were told that the Government were pushing ahead with their plans to weaken child-care ratios despite widespread opposition. Late last night, however, the ink was not even dry on the Gracious Speech when we learned that the Government might in fact be U-turning on their policy. Is not this yet another example of chaos and incompetence at the heart of Government policy making?

When the Minister came to the House in January to announce this policy, we told her that she was threatening the quality of child care, doing nothing to address the spiralling costs of child care and dismissing the advice of her own experts. Since then, the—[Interruption.]

[Mr Speaker]

Order. The shadow Secretary of State is trying to make his points, yet there is a quite separate exchange being conducted at the same time. That should not be happening, and I say to the hon. Member for Devizes (Claire Perry), whom it is always a delight to see in the Chamber, that she arrived late for the urgent question. She cannot therefore participate in it on her feet, and she certainly should not do so from her seat.

[Stephen Twigg]

Since that announcement in January, the scale of public opposition to the Minister’s plans has been overwhelming. The Government’s own adviser on childcare, Professor Cathy Nutbrown, has said that the ratio plans make “no sense at all”. Today, the Minister has said that all the evidence demonstrates that what she is doing is right, but who supports her proposals? Is not this yet another episode of bad policy making by the Education Secretary? First we had the fiasco of shutting down school sport partnerships. Then we had the disastrous attempt to bring back CSEs and O-levels. Now we have a child care policy that is rejected by parents, nursery providers and the Government’s own experts. Will she think again and rule out this damaging policy once and for all? What lessons will she and her Secretary of State learn from this latest shambles? Does not this show once again that this Government have no plan for hard-working families?

[Elizabeth Truss]

I have already outlined what our plans are; we announced them in our “More great childcare” proposal. Our plans have the support of Sir Michael Wilshaw, the chief inspector, who commented on them in a recent speech. He has accepted the principle of higher-qualified staff having more professional autonomy. Andreas Schleicher of the OECD also supports our plans. Of course opinion is divided within the British academic establishment, as it is on many education issues. I would point out to the hon. Gentleman however that these policies are alive and well in France, Ireland, Holland and Germany. There is not a single country, including Scotland, where the ratios as are low as they are here in England. Furthermore, he has not come up with any response on what he plans to do about the appallingly low wages in the child care sector or the high levels of staff turnover, or with any ideas about how he is going to reduce costs. Is this another spending commitment that he is pledging when his party has already pledged many more spending commitments than it has the money to pay for?