Thank you, Mr Hollobone. It is always a pleasure to make a contribution in Westminster Hall, but especially on such an important issue. I congratulate the hon. Member for Winchester (Steve Brine) on setting the scene, as he so often does in these debates. I was involved in many of the debates in which he was Minister. Today, he is asking the questions and making constituency-based requests, and I am very happy to support him and others. I put on the record my thanks to the Library for the briefing on this topic. We do not often say so, but the Library briefing for this debate was quite good. Its opening statement says:
“The Institute for Fiscal Studies (IFS) has estimated, for example, that ‘a quarter of private nurseries might have been operating at a significant deficit’ during the national lockdown, compared to 11% before the pandemic. With regards to the impact of lower attendance, the IFS has estimated that ‘for every 5 percentage point drop in fee income between 5% and 25% compared with pre-crisis levels, an additional 3–4 percentage points of providers are likely to face a significant deficit.’”
Over the years, my constituency has seen large growth in nursery provision, based on the high employment opportunities and the need for nursery provision—it was a growth market. Since the coronavirus outbreak in March, however, there has been a real sea change, and nursery care and childcare providers have contacted me regularly. I understand the severe difficulties for a sector that is essential for the proper functioning of the working economy. I was reminded of the essential nature of childcare during lockdown when inundated with requests for help to allow people to go to work. I repeat the valid
point raised by the right hon. Member for East Hampshire (Damian Hinds) about the problem of taking away grandparents’ ability to mind children, as has been the norm for generations, by forcing them to work into their late 60s. There is a lack of childcare that was once a given. The opportunity for aunts, uncles, siblings or grandparents to help out is not happening. Life is changing.
Nursery providers need investment to deal with the high level of provision that is expected of them. If they are to provide wraparound childcare, they need transportation to and from school, workers who are equipped to deal with the needs presented, and to be able to pay them a living wage. Sometimes people in nursing provision and childcare do not get the living wage, but they should and must. That is not possible with the funding that they receive.
Covid-19 has simply exacerbated and accelerated the issue that needs to be resolved for the future of nurseries. Nurseries, which are absolutely essential, will be a casualty not of coronavirus but of not being recognised as a vital component in the cogs of education. An Early Years Alliance statement points to the fact that only a quarter of providers surveyed said that they expected to make a profit between now and March 2021. Some 51% said that they would need emergency funding to stay open for the next six months. Two-thirds or 65% said that the Government had not done enough to support providers during the covid-19 pandemic. The survey found that one in six early years providers could close by Christmas 2020 without additional funding. On behalf of others, we must make the plea to the Government to step up. If nurseries were to close due to financial restrictions and problems, there would be an impact on people’s ability to work.
I will finish with some of the good things. The Duchess of Cambridge highlighted the essential nature of early years intervention and the impact of the first five years of life. She referred to five big insights, which included a visit to a farm in my constituency, which is why I wanted to mention it; we are pleased to have royalty in Strangford any time. That leaves no doubt as to the value of good nursery provision. It is time for the Government to stand with the Duchess of Cambridge, to fund the sector properly and to make the changes to keep businesses open.
Early years intervention by trained professionals makes a difference to individual children and, as Duchess Catherine has said, makes a difference across generations in our community. Let us show today that we in this House are prepared to support the nursery sector for our future generations.
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