Childcare Bill

My Lords, I beg to move that this Bill be now read a second time. This is an important Bill for the welfare of children in our country, which I believe will be welcomed in all parts of the House. It is the first legislation dedicated exclusively to childcare and the early years—bringing services for young children and their families into the mainstream of the modern welfare state. It flows from the Government’s commitment to improving the life chances of all children and their families; to tackling poverty and disadvantage at their cause; and thereby to the promotion of social mobility. Early education and childcare have the unique potential to help meet all three of these goals—improving the welfare of children, tackling poverty and accelerating social mobility. Significant progress has already been made. Since 1997, we have made free nursery places universally available for three and four year-olds. Virtually all four year-olds and 96 per cent of three year-olds now take up these free nursery places. We have established 700 Sure Start children’s centres, providing integrated childcare, early learning, health and social services in deprived communities. We have also enabled a huge expansion of childcare to take place—600,000 extra places since 1997—and we have transformed support for parents of younger children, through the childcare element of the working tax credit benefiting 337,000 families, and through both a substantial increase in paid maternity leave from 18 to 26 weeks and the first ever paid paternity leave for fathers. Look at this picture as a whole and we are witnessing the creation of a new and large sector of the welfare state, as important for the future of Britain and the welfare of its people as the education and national health services we have come to take for granted. Seventeen billion pounds has been spent on under-fives since 1997 and there is much more to come. The Bill creates the essential framework for government to complete the creation of the national under-fives services, and by government I mean central government and local government working together in partnership with the private and voluntary sectors. I hardly need explain to your Lordships why this new framework is so important. Without high-quality childcare and early childhood services, children from low-income families will lose out twice. First, they are more likely to live in poverty if their parents are not working and earning. Secondly, they will not be benefiting from the pre-school experience which better-off children gain as a matter of course—meeting other children, broadening their horizons and helping their cognitive development. The research is clear that the early years of a child’s life are its most formative. The Institute for Fiscal Studies reported in December last year, from a study of a cohort of children from 1958, that starting education before the compulsory school starting age of five can yield benefits in cognitive tests such as reading and maths at age seven, and this effect remains significant up to the age of 16. The IFS concluded that:"““Controlling for a particularly rich set of child, parental, family and neighbourhood characteristics, we find some positive and long-lasting effects from early education””" The Effective Provision of Pre-school Education project, reporting in 2004, similarly concluded that for those children who attend pre-school for two years, cognitive development at the age of five is four to six months more advanced than for those who have not attended at all. For those who start at the age of two, cognitive development at the age of five can be as much as 10 months more advanced. The EPPE project concluded:"““Pre-school experience, compared to none, enhances””," all-round development in children, and that:"““Disadvantaged children . . . benefit significantly from good quality pre-school experiences, especially””," where they are with,"““a mixture of children from different social backgrounds””." The inspection evidence is also positive. In March 2005, 99 per cent of registered settings had received either a ““satisfactory”” or a ““good”” rating from Ofsted. Since then, Ofsted has added an additional category of ““outstanding”” to distinguish and recognise those providers performing especially well. Ofsted reported further last August on good practice in childcare and nursery education and gave a strongly encouraging picture of the breadth of excellent provision across the country. We now need to take that progress further, which is what the Bill does. In Part 1, the Bill empowers local authorities to be strategic leaders for under-fives and childcare provision in their localities—commissioning, facilitating and planning provision; and championing the rights and needs of parents and children. Equally important, in Clauses 49 and 50 in Part 3 and Chapter 2 in Part 3, is the new and enhanced regime for regulation and inspection which will, we intend, give the same quality and focus to the early years that we have brought to schools over the past decade through Ofsted. In fulfilling their new duties, we expect local authorities to develop early childhood services in partnership with their NHS colleagues in primary care trusts and Jobcentre Plus. Much good work is already under way in these areas. Sure Start local programmes and now children’s centres are providing crucial services that integrate for the first time the support that children under five and their families may need. We have invested heavily in this area and will continue to do so to ensure that by 2010 there is a children’s centre for every community, and 3,500 nationwide. I have written to noble Lords to elaborate on the arrangements for the rollout of those 3,500 centres, setting out important contexts for this Bill. The Bill provides not only a framework for under-five services, but key objectives for these services. Clause 1 requires local authorities to improve the outcomes of all children in their area and to reduce the division between those with the poorest outcomes and the rest. The Government believe, and propose in this Bill, that we should use this unique opportunity of developing under-five services to reduce the inequalities that persist between those from the poorest backgrounds and the mainstream of society. The Bill sets out an expectation that local authorities will encourage all children to reach their full potential and, in particular, concentrate on progressing more rapidly those most disadvantaged. In the words of Clause 1:"““An English local authority must . . . improve the well-being of young children in their area, and . . . reduce inequalities between young children in their area in relation to . . . physical and mental health and emotional well-being . . . protection from harm and neglect . . . education, training and recreation . . . the contribution made by them to society””," and,"““social and economic well-being””." Clause 1 encapsulates the philosophy of Sure Start, which we wish to extend. The Government welcome the early findings from the national evaluation of Sure Start last year, including the issues that it highlighted, which gave us the opportunity to reflect on what works and to modify our policies and practice in line with the emerging evidence. We have since issued guidance for children’s centres, which address many of the issues raised in the report, including the need to improve outreach to the most disadvantaged families. The provision of sufficient childcare is a key feature of the Bill. If parents are to be able to balance work and family life, they need to have access to affordable and flexible childcare. Clause 6 requires local authorities to secure sufficient childcare for working parents in partnership with private, voluntary and independent sector providers. For most parents, most of the time, childcare requirements are met by informal arrangements—not least by grandparents and other relatives—together with existing patterns of nurseries and childminders. This Bill will support parents by enhancing the range of choices available to them, requiring local authorities to plan for childcare to take account of a proper local analysis of what parents use and need in their localities. However, we recognise that there are two groups that may require extra assistance, so we have included two specific references in the Bill in respect of those on low incomes and of disabled children. Clause 6 specifically requires local authorities to,"““have regard to the needs of parents in their area for . . . the provision of childcare in respect of which the child care element of working tax credit is payable, and . . . the provision of childcare which is suitable for disabled . . . children””." Let me say a word more about disabled children, who are, rightly, of great concern to the House. Disabled children and young people currently face multiple barriers that make it more difficult for them to achieve the same outcomes as their peers. Twenty-nine per cent of families with disabled children live in poverty, mainly because their parents are unable to access childcare that meets their often complex and highly demanding needs. By putting the needs of disabled children in the Bill, we are making it clear that local authorities must work with providers, parents and disabled children themselves to develop provision that better meets their needs, and thereby help to reduce poverty in these families. To reflect the fact that some disabled young people develop at a different pace to their peers, the Bill extends the duty on local authorities to secure sufficient childcare for disabled children from the age of 14 to the age of 16. Those extra two years reflect the fact that there may be a need for childcare for longer to provide parents with the support they need, and to give disabled children the opportunity to continue to access provision after the school day. I know some of your Lordships wish us to go further still and extend that duty beyond the age of 16. We will debate this issue fully, and, as I have already indicated to the noble Lord, Lord Rix, the Minister for Children and I will be very glad to discuss it with him and any other noble Lords who wish to join us. But there are two issues I should point out at the outset—not only the cost implications, but the fact that the Bill is concerned with childcare. Provision suitable or essential for young adults with additional needs, including disabled young adults, is a priority that is being addressed by other support systems, including the disability living allowance, the independent living fund, direct payments and the new individual budget pilots that build on Mencap’s In Control projects, all of which allow families to purchase the support that best meets their needs. The Government are fully committed to improving the life chances of disabled children, and I will be glad to set out fully the range of initiatives under way when we discuss this issue specifically. I want to refer particularly to young looked-after children, who are, rightly, another prime concern of your Lordships. We have come a  long way in raising the profile of looked-after children since the launch of Quality Protects in 1998. The Children Act 2004 placed a new duty on local authorities to promote the educational achievements of looked-after children. That duty applies to all such children regardless of their age. Children’s centres, and the new duty to improve outcomes in this Bill, will make a further significant contribution. Under Clause 3, local authorities will have to ensure that they are proactive in providing for those from the most disadvantaged and vulnerable backgrounds, who will include looked-after children and their carers. Local authorities must also ensure that the information and advice that they provide to parents is accessible to such carers. Part 2 empowers and requires local authorities in Wales to secure sufficient childcare and provide information to parents. These provisions broadly follow the English provisions in Part 1. The Welsh Assembly Government are committed to the same goals as the Department for Education and Skills for England in empowering local authorities and ensuring that parents have a choice and the information necessary to balance their working and family lives. As I have mentioned, Part 3 brings together the existing regulatory regimes for childcare and early education in a coherent way in conjunction with Clauses 49 and 50 in Part 3, which provide for inspection of such provision. Part 4 contains important measures on the provision of information and data. To achieve the key objectives of the Bill in improving the outcomes of children, we need to enhance the quality and accuracy of  information about children’s experiences of early-years provision. Clause 99 allows for  the collection of individual child-level information to become standard across all local authorities in England, with equivalent provision for Wales in Clause 101, to improve the accuracy of  the funding allocation  for the free entitlement for three and four year-olds  and support  the delivery  of other services. That data will be particularly important in underpinning the extended right to free universal provision for three and four year-olds enshrined in Clause 7, which we intend to extend from the existing 12 and a half hours a week to 15 hours a week for all parents. In the final part of my speech I shall highlight two other key related issues: the new early years foundation stage framework we are introducing for all young children; and the quality of the workforce essential to delivering it. The purpose of the early years foundation stage is to promote the five Every Child Matters outcomes for all children. Clauses 39 to 48 in Part 3 set out requirements for the new early years foundation stage, comprising ““learning and development requirements”” and ““welfare requirements””. Those two elements are equally important. Between them they will set out what providers must do to ensure that children are well cared-for and able to develop appropriately for their age. The Effective Provision of Pre-school Education evidence tells us that integrated education and childcare deliver the best outcomes for children, particularly those from the most disadvantaged backgrounds. The EYFS will bring together the existing separate arrangements for care and education and build on the well received foundation stage and the Birth to Three Matters framework. The early years foundation stage is intended to ensure quality provision. No matter what provision parents may choose, they need to know that their child will benefit from a good-quality experience. The purpose is not formal teaching or tests, but provision that is play-based and focused around the needs of the individual child. Alongside these statutory reforms, we are taking significant steps to improve the quality of the early years workforce, which will be key to the successful delivery of the early years foundation stage. An essential part of the 10-year childcare strategy is the transformation fund. Amounting to £125 million a year between 2006 and 2008, it will improve quality without providers passing the costs on to parents. The funding will enable local authorities to increase the number of private, voluntary and independent settings that employ staff qualified to level 3 and level 6. We are aiming to have a cadre of early years professionals, qualified to graduate level, in every full-day setting by 2015. I shall say a word about safeguarding. The main changes that we will promote in this area are set out in the Safeguarding Vulnerable Groups Bill, which is now published and will be debated at Second Reading soon. However, Ofsted registration of childcare providers, as set out under this Bill, will also ensure that checks have been carried out on the suitability of those employed in registered settings. I have set out the philosophy, objectives and main provisions of the Bill. I look forward to the contributions of noble Lords in all parts of the House as we debate it further in Committee. Our aims are simple: to give every child in this country the best possible start in life from the moment of their birth; and to give parents all the assistance that we can in that vital task, consistent with their own parental responsibility. These objectives are critical to the health and well-being of a modern society. I commend the Bill to the House. Moved, That the Bill be now read a second time.—(Lord Adonis.)