Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Education on the potential merits of subsidising access to wraparound care for (a) vulnerable children and (b) children of key workers.

The department regularly meets a range of stakeholders, which includes discussion of parent’s access to childcare.

The Government appreciates that the wraparound childcare sector, like many sectors, is facing unprecedented financial pressures as a result of the COVID-19 pandemic. It is for this reason that the Government has made a range of financial packages of support available for businesses to access throughout the current crisis. This includes tax relief, business loans or cash grants through the Coronavirus Job Retention Scheme (CJRS) and the Self-Employed Support Scheme (SEISS), as well as a £594 million discretionary fund for councils and the Devolved Administrations to support local businesses that may not be eligible for other support, during the current national lockdown.

Additionally, the Government has encouraged all local authorities to consider what local grants could be used to bolster the childcare sector in their areas, to safeguard sufficient childcare provision for children of critical workers and vulnerable children. This includes funding streams such as the Holiday Activities and Food Programme. The expanded programme, which comprises a £220 million fund to be delivered through grants to local authorities, will be expanded to reach all local authority areas over the Easter, summer, and Christmas holidays in 2021.

The Government is also acutely aware of the impact that coronavirus has had on young people. That is why more than £60m of the unprecedented £750m package for the voluntary and charity sector has been directed towards organisations supporting children and young people. This is on top of £200m government investment in early intervention and prevention support initiatives to support children and young people at risk of exploitation and involvement in serious violence, through the Youth Endowment Fund.

In addition to wraparound childcare providers, parents / carers can also utilise the following to support their childcare needs:

• In the most recent national lockdown, the Government has chosen to keep early years settings open for all children. Vulnerable children and children of key workers can also continue to attend access out-of-school settings, for example breakfast clubs and after-school clubs.
• Nannies, which are still able to continue to provide services, including in the home; and
• Parents are also able to form a childcare bubble with one other household for the purposes of informal childcare, where the child is under the age of 14.

Tax-Free Childcare also provides working parents with 20% support on childcare costs up to £10,000. Eligible working families with children under 12 (or under 17 if disabled) will receive up to £2,000 per child per year (or £4000 per child per year for disabled children) towards their childcare bills.

TFC can be used for activities out of school hours.

Low income working parents may be eligible for support through the Universal Credit childcare offer, which covers up to 85% of eligible childcare costs, or through Working Tax Credit, which covers up to 70% of costs. Both can be used for childcare that is outside school hours.