The “Levelling Up” White Paper set out a mission that by 2030 the number of primary school children who were achieving the expected standards in reading, writing and maths would be increased. That cannot be done without investing in early years. We already see the impact of the failure to do that, with children from disadvantaged backgrounds being 11 months behind their peers in terms of development by the time they get to primary school. Investing in early years is what bridges the gap.
We know that our early years sector is in crisis. Since 2019, 500 non-domestic early years childcare settings have closed, 300 in the last year alone. Some 65% of those closures took place this summer. In total, there are 5,500 fewer providers of early years services than there were just a few years ago, and 95% of those providers say that it is the current levels of funding and investment that are driving them out. Crucially, that is happening most in the areas that need that provision most: 15% of closures are happening in deprived areas.
I really hope that the Minister will listen to the case I make today, because it should be a no-brainer. It is not just about seeing children as part of our future and it being worth investing in them as infrastructure. Some 64,000 more women of working age are out of work today than were last year, and 35,000 of them say that caring commitments stop them going to work. I tabled amendment 2, because our economy cannot afford not to realise that childcare is infrastructure. We must realise that making sure people have the right roads and resources to get to work must include ensuring that their children can be cared for.
A report by the Centre for Progressive Policy shows that if women had access to adequate childcare they could increase their earnings from £7.6 billion to £10.9 billion. What would that mean for the Exchequer, which should be here supporting this amendment? The Women’s Budget Group estimates that 1.7 million women are prevented from taking on work for childcare reasons. That costs the economy £28 billion a year. Amendment 2 and unlocking resources for childcare would be a win-win for our economy and for our communities. It would be an investment that would save us money. It is also right that developers should play their part.
Comparing Ofsted and Office for National Statistics data shows that since 2014 the rate of population growth outstrips the growth of the childcare sector in 116 out of 149 local authorities, including 15 of the 20 areas with the highest population growth. The National Childbirth Trust now tells parents to put their not yet born children on the list for childcare providers, because there are not any and getting one is almost impossible.
I see the problem first hand in my local community. The brilliant Walthamstow Toy Library is about to be yet again kicked out of its building because developers want to turn it into flats. Those developers looked completely blank at the idea that they would invest in
providing a space for that service because it has such an impact on our local community. That is happening across the country: vital resources that help parents get to work and to develop our children are not getting the funding that they need. The Minister could change that if she would just make it explicit that the provision is not about educational settings. The list that she has now covers nurseries that are attached to schools, but what we are talking about is any form of childcare and revolutionising the funding that is available.