Oral Answers to Questions

Tracy Brabin Excerpts

Monday 10th September 2018 Commons Chamber

[Nadhim Zahawi]

I am grateful to the hon. Lady for her question. Maintained nurseries offer a valuable service to communities such as hers and others around the country, and we are conscious of the value that they provide. Both I and the Secretary of State have visited a number of them. Decisions about the future funding of maintained provision will be taken at the spending review, but I repeat that it would be premature for local authorities to make decisions about the future of their maintained nurseries before seeing the spending review outcomes.

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

The National Day Nurseries Association survey last week exposed the scale of closures caused by underfunding the 30-hour entitlement—a rise of nearly half over a year. Bright Beginnings in Stockport said that

“the reality is we can’t provide Outstanding nursery care on the funding provided.”

The Ark nursery in West Sussex said that it was

“closing because of a decade of underfunding.”

Windymiller, in my own constituency, on the estate where I grew up, closed its doors a few months ago due to funding pressures. Those are not outliers. Four in 10 providers fear that they will have to close in the coming year. These are viable businesses that just cannot square the circle of frozen funding and rising costs. If the Minister will not listen to us, will he at least listen to them?

[Nadhim Zahawi]

Let me attempt to address that point specifically. National average hourly funding rates for local authorities for three and four-year-old entitlements increased from £4.56 an hour to around £5 an hour in April 2017. Our rates compare very favourably with the published research on the costs of childcare by Frontier Economics, which shows that the mean hourly cost of delivering a place is £3.72 an hour. I know that this is technical, but it is worth listening to, because the hon. Lady keeps going back to points that she clearly has not followed the details of. The research also showed that the average cost of two-year-olds’ places was £4.30 an hour, and our average funding rate is £5.92 an hour. All local authorities saw a 7% increase in the two-year-old rate in April 2017. We continue to monitor this, but those are the facts, and I hope that she will look and them and think about what she is saying about them publicly.