Question to the Department for Education:

To ask the Secretary of State for Education, if he will make an assessment of the potential impact of rising energy bills for childcare providers on the cost of childcare in the next two years.

The government recognises and continues to assess the impact rising energy prices and inflation are having on nurseries, childminders and other childcare providers. Rising global prices of energy are likely to mean rising energy bills for childcare providers over the next two years, and that is why the government is taking action to support businesses, including those in the early years and childcare sector.

The Secretary of State meets regularly, and will continue to work closely with, his cabinet colleagues in the Department for Business, Energy, and Industrial Strategy and HM Treasury to monitor the impacts on the early years and childcare sector.

On Thursday 8 September, my right hon. Friend, the Prime Minister announced measures to tackle current issues in the UK energy market, including the introduction of an Energy Price Guarantee to limit the price suppliers can charge customers for units of gas and electricity.

Typical UK households will pay no more than £2,500 a year on their gas and electricity bill for the next two years from Saturday 1 October. This will save the average household £1,000 a year based on current energy prices from October. This will be in addition to the announced £400 energy bills discount for all households and together they will bring costs close to where the energy price cap stands today. This will support childminders operating from their own home who are on domestic energy tariffs.

There will be a new six-month scheme for businesses and all non-domestic energy users, including charities and public sector organisations. Providers in all educational sectors will therefore be eligible, including providers of childcare on non-domestic premises like nurseries.

After this initial six-month scheme for non-domestic customers, the government will provide ongoing, focused support for vulnerable sectors. There will be a review in three months’ time to consider where this should be targeted to make sure those most in need get support.