Oral Answers to Questions

Debate between Tracy Brabin and Nadhim Zahawi

Monday 24th June 2019 Commons Chamber

[Nadhim Zahawi]

I absolutely agree with my right hon. Friend. The parents whom I have met and with whom I meet regularly tell me that it has made an enormous difference. Parents who hardly saw each other are able to work and to see each other and their child. One lady said movingly that her child came out of his shell because he was able to spend more time with children his age, too.

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

On many occasions, the Minister has told us that what he really cares about is quality and sustainability. Will he explain how he is improving quality when the National Day Nurseries Association’s most recent data shows that 55% of childcare settings plan to spend less on training; that one in five settings are lowering the quality of food served to children to make ends meet; and that more than 40% of settings have cut back on learning resources? On sustainability, 17% of nurseries in deprived areas anticipate closure in the next year. How is that sustainable? Given that the Minister’s priorities are not being met, will he at least acknowledge that some nurseries are struggling and take action to ensure that deprived areas are not disproportionately affected?

[Nadhim Zahawi]

I am sure the hon. Lady will agree with me and the whole House that the organisation that should be responsible for quality should be independent from Government, and that organisation is Ofsted, which states clearly that the overall quality in the sector remains high. Ofsted says that 95% of the providers in the early years register that have been inspected were judged to be good or outstanding. That is a good track record. We can always do better and the hon. Lady is right to say that we have to keep a close eye on funding, because some providers are challenged, but that does not mean that we do down the whole sector. It is wrong to talk down the sector in that way.

Oral Answers to Questions

Debate between Tracy Brabin and Nadhim Zahawi

Monday 29th April 2019 Commons Chamber

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

The Minister may be aware of the recent “Sounds of Intent” report, which showed that targeted music lessons for under-fives helps close the gap, particularly in deprived areas and for children with complex needs. Can the Minister tell us whether he believes that every child should have access to music while at nursery? If so, what audit is he doing on quality? He may agree that putting a CD on at Christmas is very different from having a professional come in on a weekly basis. If he believes that quality is important, what is he doing to ensure that music has a greater role in the early years foundation stage?

[Nadhim Zahawi]

We plan to spend around £3.5 billion on early education entitlements this year alone, and that targets the most disadvantaged in society. The hon. Lady rightly mentions music, which is very much part of the creative portfolio that children under five should be enjoying. Part of our funding, of course, is for making sure that we deliver all that and more in our fantastic early years provision.

Oral Answers to Questions

Debate between Tracy Brabin and Nadhim Zahawi

Monday 4th February 2019 Commons Chamber

[Nadhim Zahawi]

To my knowledge, two local authorities have done the same thing in England, and I urge other local authorities to look into what they can do to help childcare providers to cope with business rates.[Official Report, 21 March 2019, Vol. 656, c. 9MC.]

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

Since 2010, the number of state nurseries in deficit has soared. One in five is now in the red and dozens have had to close. Transitional funding will soon run out and they face serious uncertainty about their future. Last week, I visited Harewood nursery, a much-loved maintained nursery in Pontefract. I was deeply troubled when the headteacher told me that without a cash injection the nursery faces imminent closure. Parents are running a GoFundMe page to keep the doors open. Will the Minister give us an assurance today that maintained nurseries will get funding, at least to tide them over until the spending review, before the end of the current financial year?

[Nadhim Zahawi]

The hon. Lady will know that we had a very good debate on that matter last Thursday, when 13 hon. and right hon. Members spoke from the Back Benches about the provision of maintained nurseries. We are considering how best to handle the transitional arrangements for a number of areas, including for maintained nurseries. My message again is that it would be premature of local authorities to make decisions on maintained nurseries before the spending review, but we are considering transitional arrangements.

Maintained Nursery Schools

Debate between Tracy Brabin and Nadhim Zahawi

Thursday 31st January 2019 Commons Chamber

[Nadhim Zahawi]

I am grateful to my right hon. Friend for that intervention. That message has come across loud and clear today, and this is something that we are very cognisant of.

[Tracy Brabin]

I would like to steer the Minister towards some fantastic research—if he has not seen it already—from the Yorkshire and Lincolnshire maintained nurseries. It contains empirical evidence about the value to local authorities of maintained nurseries and the impact of their closure. It provides clear evidence that we need to solve this funding crisis today.

[Nadhim Zahawi]

I am grateful to the hon. Lady for that. As I have said, we will be publishing our own research very soon. I know that this is later than we had originally hoped, and I apologise for that, but it is a complex piece of work and it is important that the researchers take the time to ensure that the findings are as robust as possible. If we are going to make those arguments, we are going to need that data. It will be a helpful contribution to the discussion, and I am prepared to look at any data points that colleagues can offer.

Nursery Sector: Sustainability

Debate between Tracy Brabin and Nadhim Zahawi

Wednesday 10th October 2018 Westminster Hall

[Nadhim Zahawi]

I have so many things to say. The hon. Lady made a thoughtful speech, and I will try to get through as many of the questions asked by her and other colleagues as possible. I hope she will forgive me for not giving way.

In this research, parents also reported wider benefits for their families: a fantastic 86% thought that their child was better prepared for school, and 79% felt that their family’s quality of life had improved. The recently published “Study of Early Education and Development” report evidenced the beneficial impacts of high-quality early education for all children aged two to four on both cognitive and socio-emotional development at the age of four.

The introduction of 30 hours has been a large- scale transformational programme, and change can be challenging for everyone. But we have seen tens of thousands of providers respond magnificently—I want to thank them for that—because of their ongoing commitment to helping families. The evaluation of 30 hours found that three quarters of providers were willing and able to deliver the extended hours, with no negative impacts on their provision or on sufficiency of childcare places. As we have heard from colleagues’ local experiences, the childcare market in England consists of a diverse range of provider types, allowing parents to have choice over their childcare provider. The supply of childcare in England is generally of high quality, with strong indications that existing supply is able to meet parental demand for Government-funded entitlements.

Nearly 80,000 private childcare providers were registered with Ofsted in March this year, and we know that nearly 10,000 school-based providers offer early years childcare. While there are, of course, sad examples of providers closing—as some hon. Members have shared—there is no evidence of widespread closures in the non-domestic childcare market. [Interruption.] Well, let me share the Ofsted data if hon. Members do not believe me. The Ofsted data published in June 2018 showed that the number of childcare places has remained stable since 2012. It is normal for providers to join and leave the Ofsted register, as it is a private market, and it can happen for a variety of reasons.

Most significantly, we have not heard via local authorities, from hon. Members or in the media of eligible parents being unable to find a 30-hours place or a place for any of the free entitlements.

[Tracy Brabin]

I am so grateful to the Minister for giving way. He says that there is no evidence of parents not being able to access the 30 hours. I have spoken to providers and nursery owners who say that they are not offering 30 hours at all.

[Nadhim Zahawi]

The hon. Lady makes an important point. It is up to providers whether they want to offer the 30 hours or not. That is a choice for them to make, but we have seen no evidence of parents being unable to find a place.

As important as the availability of a place is, I am also pleased, and in many ways delighted, that the quality of childcare providers remains high, with more than nine in 10 rated good or outstanding by Ofsted. In January 2018, over 1.2 million children under the age of five were receiving funded early education in settings rated good or outstanding by Ofsted.

We continue to support growth in the childcare sector. We have already invested £100 million in a capital fund to create extra high-quality childcare places in all provider types. We continue to work with councils to support the providers who deliver our free entitlements, through initiatives such as the £7.7 million delivery support fund and through our delivery contractor, Childcare Works.

I was not going to mention the NAO report or Frontier Economics, but I am pleased that the shadow Minister commended the thorough and wide-ranging review that the NAO report mentions—we will say a bit more about that later. Over the next year, Childcare Works will continue to work with local authorities to raise awareness and to support childcare providers to deliver the Government’s childcare entitlements, including the 30-hours offer.

The Government have introduced a range of business rate reforms and measures, which will be worth more than £10 billion by 2023—my hon. Friend the Member for Bolton West mentioned the issues to do with business rates—such as raising the rateable value threshold for 100% relief from £6,000 to £12,000, which means that about 655,000 small businesses pay no business rates at all. A package of support worth £435 million over five years is available to those that have had a large hike in business rates. We are also increasing the frequency of property revaluations from every five to every three years following the next revaluation, to ensure that bills more accurately reflect property values.

We have provided powers under the Localism Act 2011 to enable local authorities to offer business rate discounts as they see fit. In 2015, my predecessor and the local government Minister asked officials to write to all councils to encourage them to use those powers to support access to local high-quality childcare provision. So far, I am aware of only two councils that have chosen to do that. Members could talk to their local authorities about joining in to do that.

On the work on costs—I want to address the issue of costs—funding is inevitably and understandably high on our agenda during any discussion about free early education entitlements. My Department continues to pay close attention to the matter. I do not want colleagues to go away with the impression that this Minister thinks funding is not a challenge. We are, however, clear that getting the funding right is critical to the successful delivery of free entitlements.

[Tracy Brabin]

Will the Minister give way?

[Nadhim Zahawi]

I am coming on to something the hon. Lady raised, but I shall give way happily if I have time at the end.

This year, we shall be enhancing our annual survey of childcare and early years providers with more detailed research. Again, I commend my hon. Friend the Member for Bolton West on his research, and I am interested in getting deep into the evidence on provider finances and childcare fees for two to four-year-olds. We have also commissioned independent research that involved site visits to a representative sample of early years providers to provide us with robust, up-to-date evidence on the costs of delivering childcare, including operating costs such as business rates. That is part of our ongoing monitoring of 30-hours implementation, and we shall consider the next steps once we have the findings on costs.

I shall now turn to some of the comments made by colleagues. My hon. Friend the Member for Bolton West mentioned VAT. Under European law, registered childcare providers deliver an exempt service, which means that they do not charge VAT on their services. The exemption is obviously designed to ensure that tax does not fall on individuals using welfare services, such as nursery services. However, goods and services purchased by the providers are subject to VAT, which causes understandable frustrations in the sector, but the rules cannot be changed within the existing legal framework. There may be opportunities to make changes to the VAT system in the future, but our rights and obligations remain unchanged until negotiations on our departure from the European Union are complete.

On the point my hon. Friend and many colleagues made about nurseries going out of business, the Ofsted data in itself is interesting. It shows that the number of childcare places available has remained stable since 2012. I also remind hon. Members that childcare providers do not have to offer the free 30 hours—that is entirely up to them—although, since the roll-out of 30 hours of free childcare, we have seen a sizeable majority of providers increasing the number of free hours available to parents, with no evidence of an impact on their funding.[Official Report, 16 October 2018, Vol. 647, c. 8MC.]

My hon. Friend the Member for Rugby (Mark Pawsey) and other Members mentioned the issue of nurseries charging parents. The Government have been clear that the funding is intended to deliver free high-quality, flexible childcare. It is not intended to cover the costs of meals, consumables or additional services, so providers can charge parents for such things. However, parents must not be required to pay any fee as a condition of taking up a place. Our guidelines state that providers should ensure that their charges are clear to enable parents to make an informed choice.

A number of colleagues mentioned financial support for parents in connection with disadvantage. I remind hon. Members that, in addition to the investment that we are making, under universal credit working parents may claim back up to 85% of eligible childcare costs, compared with 70% of costs covered under the outgoing tax credits system.

The hon. Member for Bethnal Green and Bow (Rushanara Ali) raised another issue to do with disadvantage, pointing out that two-year-olds cannot access the disability access fund, the early years pupil premium or the SEN inclusion fund. In 2017, we increased the funding rates for all disadvantaged two-year-olds by 7%, and we pay a higher rate for them because we recognise the higher costs associated with two-year-olds. The two-year-old funding is, by its nature, already targeted to the disadvantaged in that age group.

Oral Answers to Questions

Debate between Tracy Brabin and Nadhim Zahawi

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.

Family Hubs

Debate between Tracy Brabin and Nadhim Zahawi

Tuesday 24th July 2018 Westminster Hall

[Nadhim Zahawi]

Let me just make some headway. I will come back to my hon. Friend if time permits, because I have a lot to say about this subject

We share a common view about the importance of effective local support for families. That is why the Government’s legislation and funding is designed to give local authorities the freedom to decide the best way to deliver their services, based on their understanding of their local needs and the character of their areas. My hon. Friend the Member for Mansfield mentioned that, for every council that is not doing well, there is a very good example of one that has done well for its families. We welcome the development of family hubs as a way to meet local need. We encourage local authorities to adopt the family hub approach, which aims to build stronger relationships and co-locate services, if they believe it would deliver improved outcomes for their areas.

We already know that many councils are moving toward that model of support, working with local statutory, voluntary—as the hon. Member for Strangford mentioned —community and private sector partners. When I was promoted to Minister, one of the first meetings I had was with Lord Farmer and the team that put together the manifesto. I have already promised my hon. Friend the Member for Congleton that I would visit a family hub in Essex and I still plan to do so.

What we are discussing today is how we can ensure that strong, effective local services provide effective support for families and children. I would like to take this opportunity to talk about the work that the Government are doing to deliver that. The strengthening families manifesto argues that Government should be working to put in place a nought-to-19 model across the country. We know others advocate for a sharper focus on younger children, proposing that children’s centres focus on a nought-to-two age range. The shadow Minister talked about that early intervention.

My view is that both of those models, depending on local circumstances, could work and provide much needed support to families, just as I am sure that there are other models that can work, too. Let me be clear, it is for local authorities to determine the model that they believe will work best for them, based on their area’s specific needs and on the history of local provision, local community circumstances and priorities.

[Tracy Brabin]

The difficulty for some councils—in Kirklees, for example—is that 50% of their budget has been cut since 2010, so they are having to slice the pie into even smaller slices. Should the pie not be bigger?

Oral Answers to Questions

Debate between Tracy Brabin and Nadhim Zahawi

Monday 25th June 2018 Commons Chamber

[Nadhim Zahawi]

I do agree that access to childcare is very important. I will look at the specific details the hon. Gentleman mentions, but suffice it to say that we are investing £50 million more to help schools to open a nursery setting.

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

May I push the Minister further on the report from the National Day Nurseries Association, which was mentioned by my hon. Friend the Member for Liverpool, Walton (Dan Carden)? Not only is there, as mentioned, an annual funding deficit of £2,000 per 30-hours child, but a third of nurseries are having to limit the funded places they offer and a third of nurseries are being paid late for the work they do. To support our childcare providers, will the Minister tell us how many local authorities will see a real-terms funding increase in the next academic year?

[Nadhim Zahawi]

The hon. Lady rightly speaks about the important research by the NDNA. Our own research demonstrates that 80% of providers are willing and able to offer places, and one third have actually increased their places.

Oral Answers to Questions

Debate between Tracy Brabin and Nadhim Zahawi

Monday 14th May 2018 Commons Chamber

[Nadhim Zahawi]

Mr Speaker, you will not be surprised that I disagree with those words. A lone parent has to earn just over £6,500 and a couple just over £13,000 to be eligible for the 30-hours three and four-year-old offer. The Secretary of State spoke about the two-year-old 15 hour disadvantage offer and that same 15 hours for three and four-year-olds as well. The evidence is clear that the money is being targeted at those who are in most need.

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

The latest evidence that the 30-hours policy is underfunded came in the shape of a survey of providers conducted by the National Association of Head Teachers. It showed that a quarter of providers believe that 30-hours children have displaced three and four-year-olds who are entitled to only 15 hours of free childcare—the children most likely to be disadvantaged. Will the Minister tell us whether this was in the plan for this policy? If not, does he not agree with the chorus of voices telling him it is time to relieve the financial pressures on providers so that the poorest children do not miss out?

[Nadhim Zahawi]

This year, we will be enhancing our annual survey of childcare and early years providers with more detailed research on provider finances and childcare costs. This will provide us with robust, up-to-date evidence on childcare costs. I remind the hon. Lady that funding to local authorities for three and four-year-olds, delivered through the early years national funding formula, has increased from £4.56 to £4.94. As of April 2017, our funding rate to deliver the entitlement for two-year-olds increased by 7% in every local authority.

Oral Answers to Questions

Debate between Tracy Brabin and Nadhim Zahawi

Monday 29th January 2018 Commons Chamber

[Nadhim Zahawi]

I thank the hon. Lady for her question. The Government have always been clear that providers can choose whether to offer parents 30 hours and what pattern of days and hours they offer. Our evaluation indicated that a higher proportion of providers were willing and able to offer 30 hours, with no evidence that financial implications were a substantial barrier to that.

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

May I welcome the Minister to his place? The Government promised 30 free hours of childcare for all working parents of three to four-year-olds, yet it has been revealed that only a third of providers can offer all the hours for free and that four in 10 do not think they will be able to offer the scheme at all next year. The situation will only get worse if Ministers go ahead with the real-terms cuts in funding of up to £600 a year per child. Will the Minister rethink these cuts, pay providers fairly and keep the promises made to families?

[Nadhim Zahawi]

We have seen no significant issues with parents gaining places with providers for 30 hours. Of course we keep monitoring the situation, but there are no significant issues. Actually, the numbers are very promising at the moment.