Free Childcare: Costs and Benefits

Thangam Debbonaire Excerpts

Tuesday 19th February 2019 Westminster Hall

[Thangam Debbonaire (Bristol West) (Lab)]

Thank you, Mr Davies. I am very grateful to my hon. Friend the Member for Bristol North West (Darren Jones) and to other colleagues, who made excellent points. I will try to do what I always swore I would and not say things that others have covered.

Both parents and early years providers in Bristol West report problems with the current system, including the cost to the economy in lost work and skills when parents are unable to take up childcare because of the complexity of the system or its inappropriateness for their needs. However, I will focus on the social costs, in particular the social cost to gender equality and the social and economic cost to lone parents.

In 2015, the OECD published statistics on net childcare costs as a percentage of average wages for a two-earner, two-child couple. The eurozone average was 14%, but in Malta the cost was 0%, in Austria 3%, in Sweden 5%, in Iceland 5% and in Germany 5%. In the UK, the cost was 55%—higher even than the United States. I just put that down as a marker for two-parent families. For single parents, there are of course often benefits and benefits in kind that help even out the additional burden of being the sole provider and income earner, but there is no doubt that free or very low-cost childcare is a great contributor to gender equality and to single parents’ ability to provide for their families.

Other Members have mentioned parents using childcare for economic benefit, so I want to focus briefly on its impact on gender equality, and particularly on its use for training, job interviews and voluntary work, which are essential for women re-entering the workforce, leaving violent partners or needing to fit childcare around being a lone parent. A single parent cannot get free childcare to go to a job interview or just to clean up the house and go to the shops, which is unbelievably difficult for a lone parent with young children. Free childcare also helps those starting up in business. Again, that has a particular impact on women, who often choose that route into employment after having children. Of course, all that benefits the economy, but there are also social benefits, which include older relatives’ ability to participate in the workforce or in other activities when they no longer have to offer to provide free childcare to enable their daughters or female relatives to do training, job interviews and so on.

Continuing on the theme of gender equality, of course men and women love their children and want to be with them, but men and women also want to provide for them, contribute to the wider world and develop their skills. If high quality, affordable childcare is widely available—the OECD defines “low cost” as less than 10% of average wages, although in the United Kingdom it is nowhere near that—that allows men and women to make decisions based on what is best for them and their children, rather than on the probable inequality of their wages, which further reinforces the inequality of their wages.

I have friends in the Netherlands, where the childcare system is far from perfect, but where there is at least a cultural understanding that when someone becomes a parent, whether they are a man or a woman, they should work fewer hours, and that men and women have an equal responsibility for picking up children from childcare or school. I am constantly amazed that, when I pick up friends’ children from school in the Netherlands, there are roughly equal numbers of men and women, and nobody notices because it is not a thing. I have friends who moved to four-day working weeks after they became parents. That is the norm. That means that each child is in childcare for three days per week and with parents for a total of four, but it allows both parents to maintain their work and play a full and active role in their child’s life, as so many parents deeply want.

In my constituency of Bristol West, childcare providers and state-maintained nurseries report problems with the take-up of free childcare by families on low incomes in general, but particularly by single parents—usually women—who struggle to fit the complexity of the system around their needs and those of their families. The OECD has documented the consequent restrictions on their economic participation.

There are other social benefits involving gender. Childcare that is free at the point of delivery, such as Sure Start —a wonderful achievement of the previous Labour Government, of which I will always be proud to bear the legacy—provides many other benefits for women. My friend Jude Grant, who is now a Labour councillor, used to run a domestic abuse support service in the north-east out of a Sure Start centre. Why did that matter? She did that in parallel with a support service for women with post-natal depression, and both those services could operate completely confidentially. When a woman went through the door of that building, everybody—including, importantly, their partners—thought they were going in for a bit of a playgroup. It meant that they could get advice, information, support, guidance on developing a new life and economic support, which was often critical for those women.

Jude has told me of her memories of teaching women how to set up bank accounts and how to organise their finances—things that their abusive partners had never let them have any control over. Their domestic abuse support was not just about recovery from emotional, sexual and physical abuse, important though that was. Having free childcare on site provided both the practical support, so that the children were well cared-for, and the confidentiality and the reduction in stigma that allowed them to move on to safe lives. I pay tribute to my friend Jude and many others who did similar things in Sure Starts across the country. As a domestic abuse specialist, I was grieved greatly to see all those specialist services gradually shut down as Sure Starts across the country were reduced.

[Alex Cunningham]

My hon. Friend has tempted me to tell a story about a young woman who came to me when I was a member of the council. She had many of the problems that have just been described. I said, “One of the things you could do is go to the neighbourhood centre and meet people, because they have childcare people and things like that.” She said, “Okay, I might do that.” Her entire life was home, school, shop, home, and all of a sudden she had an extra place to go. She eventually got into employment. I found her at the till in Tesco, not buying but working, and she recounted the fact that she had come to see me. Such opportunities are absolutely critical.

[Thangam Debbonaire]

I am grateful to my hon. Friend for adding that example from his caseload. I could tell many a story of people I worked with in Sure Start centres across the country who had similar tales to tell about having that stigma-free, confidential safe space in which their children could be cared for, but with other services wrapped around it. That was transformative for women’s lives, and it grieves me greatly to see them gone.

I have several questions for the Minister. I believe he is an honourable gentleman who wants the best for children and families across the country. I have asked Treasury Ministers and other Children’s Ministers—not this Minister—about funding for early years, and I have not really got satisfaction. There is a tendency for each to refer me to the other side. I raised early years childcare funding two weeks ago on the Floor of the House when the Education Committee presented its report on the subject.

I will ask the Minister a few questions. First, what will his Department do about the exclusion and complexity of the current system, particularly for women and lone parents, that other hon. Members have described? Secondly, what will he do about the difficulties for lone parents in getting childcare and its impact on their getting training and job interviews? That is critical for getting lone parents, who are often skilled but unable to work owing to childcare problems, back into employment. Thirdly, has his Department carried out a gender impact assessment of the current childcare system? Fourthly, has his Department assessed the impact of the system specifically on low-income families? Fifthly, has his Department had time to review the Select Committee report? It is not all about funding; there are related issues.

I plead with the Minister to consider what has been said today. The impact on families of high quality childcare that is free or affordable at the point of delivery is immense.

[Chris Elmore]

As ever, my hon. Friend champions the people of Bristol West and those in our society who most need help and are most vulnerable. Does she agree that the Department for Education could learn from what is happening in Wales? The Welsh Government announced yesterday a 30-hour offer and investment in 150 new or redeveloped childcare centres, to ensure that all working families benefit. It will not be based on income but on genuine need, which will be met via Government intervention. That shows the difference that a forward-thinking and progressive Labour Government can make.

[Thangam Debbonaire]

I applaud the Welsh Government and I look forward to seeing the impact of that, which may have lessons for the UK Government.

I believe that, like the Labour party, the UK Government want to champion people getting into work. We are the Labour party—the clue is in the name—but the Tory party also says that it wants people to be in good quality jobs and to be able to do those jobs without constantly worrying about what is going on at home or about childcare, or about not being able to make it to childcare. I have heard that as a Whip, when people I am whipping say to me that they need to leave before a vote otherwise they will not be able to pick their child up from childcare. That is manageable as a Member of Parliament—just.

I urge the Minister to answer my questions and those of other hon. Members, and to recognise the economic and social value of free childcare to the entire country.

[Geraint Davies (in the Chair)]

On behalf of the Scottish National party, in a late change, I call David Linden.