I thank the Minister for her contribution, but the source I have, which I believe and which is very credible, says that it is 42% of families, so we will have to figure out who is right. I would just like to point out again that under the Labour Administration in Wales the uptake of Flying Start provision for two-year-olds stood at 86% last year.
Labour believes that the Government have failed to deal with unacceptable local variations in the information that is available to families who could benefit from the childcare offer for two-year-olds. I have seen it myself, when knocking on doors in my constituency, and the Public Accounts Committee has heard that only 30% of parents are even aware of the family information services. That weakens the value of the childcare already on offer, when the socioeconomic gap in educational attainment is large and the benefits that come from high-quality provision for disadvantaged children are clear for everyone to see. Extending the entitlement to 30 hours a week for working families is likely to place further strain on quality and access for the most disadvantaged children, so we need to tread carefully. Labour believes that that is due to the policy criteria, the capacity of the sector and the quality of the provision that can be offered under the current funding rates. Will the Minister to outline in her response how her Department will improve the quality and consistency of the information available to parents and also explain how providers can double provision with the funding they currently have?
It is clear that Government measures to help working families have been insufficient and have led to the justified anger seen in the petition. Over the last Parliament, the cost of a part-time nursery place for a child under two increased by 32%. A family paying for that type of care now spends in excess of £1,500 more than they did in 2010, and wages have been largely static, which adds to the pressures on working families. The member of the public whose Facebook post prompted the conversation we are having spoke for many when he said:
“Myself and my wife work full time and pay over £800 per month for childcare…If we had another child, I would have to give up my job, as it’s simply outrageous the amount we have to pay”.
On the Facebook page are other poignant comments by people who are struggling to make ends meet because of childcare costs. That individual’s experiences are also reflected in research by the Resolution Foundation, which shows that more than a third of mothers who want to work are unable to do so because of high childcare costs. That issue was referred to by the hon. Member for Aberdeen North (Kirsty Blackman), and my hon. Friend the Member for Wirral South spoke extensively and eloquently about the problems of the current labour market. She told us the story of Linda from Merseyside. I can safely say to her that there are countless other Lindas, not just in my constituency but across the country, who will be able to relate to that story. Of course, childcare is not only a women’s issue—a point that has been made—but it is no secret that the pressures of childcare fall disproportionately on women, in lots of situations, especially the one that the hon. Member for Aberdeen North mentioned.
I want to come back to the tax-free childcare scheme that the Government speak about. The Government talk about helping those who are just managing, but the cap on working tax credit means that in 11 local authorities the average cost of part-time childcare now exceeds the support on offer. Furthermore, the tax-free childcare scheme, which I am sure the Minister will mention, has been poorly communicated and twice frustrated by Government delays. Research has indicated that the scheme will only deliver for those on high incomes, meaning that it may not support the families who need it most. Labour believes that it is proving to be a wasted opportunity in addressing the root cause of mounting childcare costs, not least for those struggling to make ends meet.
I also want to touch briefly on the funding formula and the lack of places. We believe that the extortionate costs that parents face—different Members have mentioned that over and over again in this debate—are the result of reduced funding being given to providers and the shortage of places available. Under the new early years funding formula, many providers will receive a much lower hourly income for free early education places, which is a disgrace. That reduction is happening when providers are experiencing higher running costs and expanding provision to keep alive the Government’s pledge of 30 hours of free childcare a week. Anyone who listened to the last Education questions will know that I have raised the issue over and over again.
The Family and Childcare Trust reveals that the number of English local authorities reporting a shortage of free early education places for three and four-year-olds has more than doubled. Figures from the House of Commons Library show that the number of places available has fallen by 45,000 since 2009. The figures speak for themselves. The Department for Education recently announced that it was paying £3 million for a private consultancy to find the 45,000 places needed to make the 30 hours’ free entitlement work. That is a choice figure. The costs that providers face, such as business rates and pension auto-enrolments, are fuelling the rapid increases in childcare costs. However, what worries me is that more than one quarter of local authorities will lose money through the funding formula
while being asked to manage the costs and to double the childcare entitlement. A 2015 report by the Institute for Public Policy Research explored the possible consequences of such a funding gap. It said:
“Underfunding the 30 hours offer would lead to a smaller, less flexible market as providers…either exit, reduce the breadth of services that they offer, take on fewer children, or refuse to offer the free hours…This would reduce parental choice and potentially push up costs for paid hours or other services outside of the free offer, such as childcare for most under-3s”.
I will draw my remarks to a close, because I want to hear what the Minister has to say. In addition to their punitive funding formula, the Government have as yet refused to commit to supplementary funding for nurseries beyond the two years. Nurseries have been clear, both in the conversations I have had and in writing to all Members of the House, that the cocktail of funding pressures will ultimately push them into an unsustainable financial situation. My hon. Friend the Member for Warrington North eloquently referred to that in her speech. I hope the Minister will put an end to the uncertainty and immediately commit to funding to guarantee the long-term future of nursery schools.
Labour believes that working parents are bearing the burden of the Government demanding unachievable expansion in provision while providing woeful under- funding. It is no secret that the autumn statement is happening this week. We demand that the Chancellor provides parents and teachers across the country with the funding to keep nurseries open, to reduce the costs of funded places and to meet the Government’s 30 hours promise to parents. I hope the Minister will be able to offer even the slightest encouragement that those figures will be in the Chancellor’s autumn statement.
I finish by echoing the words of my hon. Friend the Member for Warrington North, who secured this debate. The early years cannot just be seen as an add-on. They are crucial to social mobility and to children reaching their full potential. Most importantly, they are crucial to the future of our country and the productivity of our economy.
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