I could not agree more with the hon. Gentleman on that. Embarrassingly, I have to confess that even I did not understand or appreciate what was available to me—I was not that well educated on that. When I got elected to this place in 2019, I could no longer get childcare vouchers from my former employer, which is what I had before, and so for many months I did not benefit at all from the tax-free allowance. I then realised that I could open up this account. I did not know that for my eldest child, who is now at school, I could use it to pay for wraparound care; I thought it only applied until my children started school. I confess that I did not know this, so I am sure that many parents out there just do not know what is on offer to them. We need a much better public information campaign about what is on offer. The other point to make on how the system is not working is that the maximum childcare support in universal credit has been frozen since 2016, which means that it covers fewer and fewer hours for those low-income families.
The hon. Gentleman delicately pointed out that early years provision has been somewhat overlooked by the Treasury in some of the recent funding settlements for the Department for Education. Let me put it slightly more starkly: based on what was announced in the autumn statement in 2022, setting the core schools funding aside, the rest of the Department’s day-to-day spending, which includes the early years, is set to be cut by £500 million, or 2.3%, in real terms over the next two years. If that means a cut for early years provision, as logic would dictate it does, that would be disastrous and short-sighted. I hope that the Minister will specifically address that point about the budget for early years provision in the next few years.
The Liberal Democrats have set out a clear plan for childcare that is flexible, affordable and fair. We believe the Government should expand the offer of free, high-quality childcare for all children aged two to four, not just in term time, but year round. Crucially, the Government should also raise the rates paid to providers to match the actual costs they face. The Government also need to plug that gap between the end of parental leave and the start of free childcare, which leaves many parents without the choice or control to which we have alluded.
As others have said, investing in our children’s early education is one of the best investments a society can make, and we need to see it as exactly that—it is an investment. Childcare is an essential part of our economic
infrastructure. For many parents, it is as important and crucial for getting to work as railways and road. Employers, finally, are seeing that and making the case, and I congratulate the CBI and other employers’ organisations that are making that case. I hope that if the Treasury will not listen to me, it will listen to Conservative Members, to those employers’ organisations and, crucially, to parents in all our constituencies, across the country. It is time the Government started treating childcare and early years as crucial infrastructure and investment in our children, and funding it properly. I really hope that next week we hear something substantive from the Chancellor on this issue.
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