Draft Childcare (Early Years Provision Free of Charge) (Extended Entitlement) Regulations 2016

Tulip Siddiq Excerpts

Monday 5th December 2016 General Committees

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

It is a pleasure to face the Minister again under your chairmanship, Mrs Gillan. It will come as no surprise to anyone listening that the Labour party welcomes any initiative to extend free childcare, but examining the regulations and the explanatory memorandum provides another opportunity to touch on several important concerns about the policy that have been expressed by Labour Members and sector leaders since it was first announced. None the less, the Opposition do not intend to divide the Committee on the regulations, as above all else we want swift progress ahead of the national roll-out of the entitlement.

The regulations are largely practical in providing a statutory framework for the policy, but the context presents a challenge to their feasibility. Childcare providers and local authorities will be keen to know whether they can truly expect to meet the demands being placed on them. Before I ask about the pressures faced by providers and authorities, I will say that the Government’s response to the early years funding formula consultation, which has somewhat changed the terms of the guidance we are discussing, offered some much-needed changes, which I welcome wholeheartedly.

Maintained nursery schools offer an excellent education to some of the most disadvantaged young children, so the guarantee of their supplement throughout this Parliament is welcome. It removes at least one unnecessary challenge for local authorities in fulfilling the measures outlined in part 4 of the regulations. Furthermore, the Opposition welcome the recognition in paragraph 9.8 of the draft explanatory memorandum of

“issues with the way the funding system currently works to support children with SEND”.

The extra funding offered for disabled children is certainly a welcome change in step, but the response from providers and sector leaders still shows the latest offer from the Government to be insufficient to achieve the requirements set out in the regulations and the policy more broadly. The difference between the cost of delivering free entitlement places, per the regulations, and the funding received from Government remains significant. Sector leaders at the National Day Nurseries Association and the Pre-school Learning Alliance have been clear that unless the gap is closed entirely, it will be difficult to secure free childcare, per part 2 of the instrument. Does the Minister believe that the concerns over the latest funding announcement are well founded? Can she say with certainty that the current offer is sufficient to implement the regulations?

Given the duties on local authorities outlined in part 4, Committee members may wish to note that the chair of the Local Government Association’s children and young people board said:

“Both councils and childcare providers are under severe financial pressures”,

and that councils

“remain very concerned that the increase in funding will not be sufficient”.

That is important because the main difference between the 2014 regulations and the draft 2016 regulations is a 20-page definition of a working parent. The decision to restrict the additional entitlement to working parents will therefore produce significant bureaucracy for local authorities and may ultimately confuse parents about whether they actually qualify. I would appreciate the Minister’s reflections on whether local authorities are equipped to handle the regulations. Specifically, it would be good to hear whether her Department has considered the extra bureaucracy being generated and whether it has a plan in place to deal with that.

I welcome the analysis in paragraph 9 of the explanatory memorandum—on the Government’s consultation—regarding the delivery of the extended entitlement, but I was surprised by some significant omissions. I am worried that there is no mention of the fact that almost two thirds of the early years providers responding to the same consultation said that they were concerned about funding. I am surprised that a memorandum covering guidance to support parents into work makes no mention of the fact that of the 25% of providers who thought there would be an impact on disadvantaged families, just 4% thought that impact would be positive. I hope the Minister will comment on some of those omissions, which constitute some of the most important findings of that consultation. The guidance seems to be missing a long-established trend in the early years acknowledged in Sir Michael Wilshaw’s annual report: that the increase in early years places has not kept pace with the increase in the early years population. How confident are the Government that there is sufficient capacity to meet demand for the extended entitlement?

The instrument before us has several laudable aims: to impose a duty on local authorities to secure early years provision; to have high quality within that provision; and to provide proper framework of eligibility. However, the positive aims, which I welcome, must be backed up with adequate resources and, most importantly, proper funding to guarantee the long-term viability of the scheme. Members of Parliament from both sides of the House and across the country have been campaigning relentlessly on behalf of early years providers and families in their constituencies to get the needed support. In particular, I thank my right hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) and my hon. Friends the Members for Manchester Central (Lucy Powell), for Kingston upon Hull East, for Ashfield, for Dagenham and Rainham, and for Ealing, Southall for all the work they have done.

The idea of 30 hours of free childcare is absolutely welcome but it must be fully funded. My fears are that it is not, so I would appreciate reassurance from the Minister t his afternoon.