Childcare

Vicky Ford Excerpts

Monday 13th September 2021 Westminster Hall

[The Parliamentary Under-Secretary of State for Education (Vicky Ford)]

It is an absolute pleasure to serve again under your chairmanship, Sir Roger. I would like to begin by congratulating the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) on securing this important debate on childcare. Every parent wants their child to have the best possible start in life, and high quality, accessible childcare is a really important part of that. Many right hon. and hon. Members have taken time this afternoon to thank childcare workers, and I agree with them: childminders, playworkers, and each and every member of our early years staff deserve our admiration, our gratitude and our thanks. I also thank Joeli Brearley for having started the e-petition that prompted this debate. Parents such as Joeli value the strengths and opportunities that our childcare sector delivers, and my Department is committed to maintaining a sustainable network of early years providers.

I recognise the strength of feeling about our childcare system, and the Government will continue to consider ways of making childcare more accessible for parents. Many right hon. and hon. Members have pointed out the special importance of childcare to women—to mothers—and as someone who once had three children under the age of four, boy, do I remember that juggling balance that so many Members have mentioned. It has been particularly impressive to hear so many fellow women MPs speak with such passion today. However, I would also like to thank the male colleagues who have taken time to join us in this debate, because it is vital that we all stand together.

I also recognise the importance of the quality of our early education and childcare. Earlier this summer, I visited the Guildford Nursery School and Family Centre and saw how committed its staff are to giving children the best start in life, like so many other hard-working nursery staff and childminders across the country. It has been a true delight to hear so many Members of Parliament mention providers in their constituencies.

Access to high quality early childcare is important because it has such positive benefits for a child’s educational and life outcomes. As we know, childcare is important in helping parents to be able to work. I am proud to be part of a Government who have extended access to early education and childcare to millions of children and parents over the past decade. In 2013, the Conservative-led coalition Government introduced 15 hours of free childcare for disadvantaged two-year-olds. That has helped more than 1 million children to get a much-needed early boost to their education. I encourage all hon. Members to encourage families from lower-income backgrounds to take up that offer, because when they do so children do better at school and it gives them vital skills that set them up for life.

Back in 2017, the Conservative Government announced 30 hours of free childcare for working families, which enabled hundreds of thousands of parents to return to or take up paid work, and many of those families have saved thousands of pounds. Working families can also get help from the Government’s tax-free childcare scheme, which offers a 20% contribution towards their childcare fees and is worth up to £2,000 a year for children aged up to 11 or £4,000 for children aged up to 16 if the child is disabled.

[Stella Creasy]

Will the Minister give way?

[Vicky Ford]

I will give way to the hon. Lady, but before I do so I want to congratulate her on her beautiful baby. I hope she is getting a bit of rest.

[Stella Creasy]

I would get even more rest if this place moved with the times and the law and provided proper maternity cover.

The Minister is talking about the take-up of the 30 hours of free childcare. As has been said, the evidence shows that the vast majority of people taking it up—70%—are from the higher-earner income bracket, and that just 13% of eligible families from the bottom third of the income bracket are taking it up. Why does she think that is the case? Does she recognise that the way it is funded at the moment means that we are excluding some of the poorest families because they cannot afford the rest of the cost of childcare? What does she think is happening?

[Vicky Ford]

I thank the hon. Lady for her question. When it comes to the take-up of the two-year-old offer, which is particularly targeted at disadvantaged backgrounds, there is a huge discrepancy between different parts of the country. For example, there are parts of London where up to 70% of families have taken it up, and other parts where it is far lower. That is why I encourage Members to get in touch with me if they want and I will tell them about the take-up in their area. As I said, there are areas where seven out of 10 families are taking it up and are continuing to do so. I will talk more about disadvantaged families later.

As the hon. Lady is aware, the Government can also help with 85% of childcare costs for universal credit claimants even if they work only a few hours a week. I know it can be challenging to claim, but it is important to recognise that it is there. In my own jobcentre, the job coaches are working closely with parents to help them with making a claim that so that they can get back into work.

Wraparound childcare is also important as it not only supports parents so they can work but can benefit children and young people’s mental health and wellbeing, and their educational and social development. I was absolutely delighted to go around the country this summer looking at our holiday activities and food programme, which has ensured that thousands of school-aged children on free school meals have had access to childcare as well as exciting activities and food. I thank all Members who visited their HAF programmes this summer. It is the first time that we have ever had anything like that type of project for our children. Of course, we piloted it for three years, but this year it has been all across the country, and local authorities are already setting out their plans for Christmas.

The Government invest a significant amount in early education and childcare, including £3.5 billion for each of the past three years on funding our entitlements for two, three and four-year-olds. In November 2020, the Chancellor announced another £44 million investment for this financial year to help local authorities increase their hourly rates paid to childcare providers. All local authorities have seen an increase of at least 8p an hour in the two-year-old entitlement. The vast majority of areas have had an increase of 6p an hour for three and four-year-olds. Significant increases were also made for hourly rate entitlements funding in 2019.

Several hon. Members from London constituencies mentioned the cost of childcare in London. It is important to note that we pay a higher funding rate for those entitlements in areas where business costs are higher. The average hourly funding rate for a three or four-year-old across all of England is £4.91, but the equivalent for London is notably higher at £6.11. The hon. Member for Hampstead and Kilburn (Tulip Siddiq) may be interested to know that in her constituency, the amount we pay to Camden is one of the highest in the entire country at £8.51.

My hon. Friend the Member for Winchester (Steve Brine) mentioned the spending review. As hon. Members know, we are already working on a multi-year spending review. In the Department for Education, we are absolutely continuing to press the importance of early years care and education right across Government as part of that spending review. Given that we are in the middle of spending review negotiations, it would not be appropriate to launch a separate independent review of childcare at this time because the outcomes of such a review would not be able to feed into the speeding review that is happening right now. We expect the outcome of the spending review to be announced later this year. My hon. Friend also mentioned closures.

[Fleur Anderson]

Will the hon. Member give way?

[Vicky Ford]

Hang on, this is important. We do not recognise the description of a 35% increase in closures. Between August 2020 and March 2021, approximately 2,000 settings joined the early years register while around 4,000 left. However, the overall number of childcare places has stayed broadly the same, suggesting that some of these closures were mergers, and in parallel some providers are increasing the number of places they offer.

The hon. Member for Lewisham West and Penge (Ellie Reeves) mentioned access to childcare for vulnerable children. It is important to remember that our early years pupil premium provides up to £302 per eligible child per year, specifically to improve outcomes for disadvantaged three and four-year-olds. She also suggested that three and four-year-olds not having access to the full 30 hours of childcare could have a negative impact on their educational development. In fact, the Sutton Trust admits that its research does not conclude that more formal childcare results in better educational outcomes. The evidence for the positive impact on educational outcomes of attending more than 15 to 20 hours of childcare per week is limited. Over that number of hours, it is helpful for childcare, but less so for educational outcomes. There is evidence that those exiting the market are less likely to be providers in disadvantaged areas of the country.

[Angela Crawley]

Will the Minister give way?

[Vicky Ford]

I really want to get some of this on the record because it is important to providers. Between June and December last year, a lower proportion of childcare providers leaving the early years register were from the most deprived quintile in comparison to other areas, with 12% of providers that left the market located in the most deprived areas.

What is important is ensuring that there is sufficient childcare and the Government’s priority is to track whether there are enough childcare places locally for parents. It is encouraging to see that the proportion of parents using formal childcare appears to be similar to before the pandemic. Every six weeks, the Department calls local authorities across the country to discuss childcare provision at the local level. At no time since June 2020, when provision reopened more widely after the first lockdown, has any local authority reported a significant lack of sufficient childcare places for parents who need them. The number of places has stayed broadly stable over the past five to six years, despite an average 3% decline in the number of births each year since 2017.

Throughout the pandemic, settings have continued to access a range of business support packages, such as the coronavirus job retention scheme, if they experienced a drop in their income or if parents were unable to attend their usual place. We are also supporting the early years sector by ensuring expert training and development is available to the workforce. That includes an investment of £20 million in high quality, evidence-based professional development for practitioners in targeted disadvantaged areas, which will give early years settings in those areas the skills to help the disadvantaged children who will benefit most from this assistance.

In June, we announced another investment of £153 million over the next three years, including funding for training of early years staff to support the very youngest children’s learning and development, especially in areas such as special educational needs and disabilities.

[Fleur Anderson]

On the issues raised by the Minister about sufficiency, are councils’ childcare sufficiency reports used to make an assessment of whether there are sufficient places or not, and of the impact of the sufficiency of places on childcare costs in an area? For example, in my borough of Wandsworth, there may be a sufficient number of places but they are not necessarily in the right areas. We have heard reports of childcare places in the most deprived areas closing more than others, and that may be happening across the country. Does the Minister have a sufficient assessment of sufficiency reports to know this?

[Vicky Ford]

I thank the hon. Member for her great interest in this subject. We see the number of providers joining and entering the market through the Ofsted register, and we have looked at the providers joining and entering based on areas of deprivation. As I said, those leaving the market are less likely to be providers in disadvantaged areas of the country. Only 12% of those leaving the market were in the most deprived areas.

In the last statistics in March 2021, there were reported to be about 1.3 million places in childcare settings. That has stayed stable over the past five to six years, despite the fact that year on year, for the past few years, we have seen on average a 3% drop in the number of children being born. We have regular contacts with local authorities, and we are not hearing about systemic failures in any local area or about parents not being able to access childcare. They may not be able to get exactly the place or the flexibility they would most like, but there is not a systemic shortage.

High quality childcare, delivered by trained, dedicated staff makes a real difference to children’s outcomes. I include and value childminders when I talk about high quality, dedicated staff.

[Wera Hobhouse]

We have said here a number of times that one in 10 childcare workers lives in poverty. Does the Minister think that is acceptable?

[Vicky Ford]

I think it is extremely important that businesses involved in the childcare sector pay the national minimum wage. The 8p and 6p an hour by which, as I said, we have increased the average early years funding, have been more than enough to meet the increases that have been announced in the national minimum wage. That was certainly true in those 8p and 6p increases that we gave last year.

What is really important is the quality of our childcare. Parents not only want childcare, but they want to know that their children are loved, safe and well educated, so high quality childcare is important. We have achieved so much here. The last time we assessed our five-year-olds, nearly three quarters—three out of four—of our country’s youngest children had achieved a good level of development. That is a massive improvement, because back in 2013 it was only one in two of our children.

I know that there are many questions about funding. My officials are in regular discussions with the Treasury as we prepare for the forthcoming spending review. Throughout the pandemic, the early years sector has been a cornerstone of protecting livelihoods and family life, letting our youngest children enjoy their early education with minimal disruption and helping to secure a positive future for each one of those children. I reiterate my deepest thanks to all those who work in early years.