Commons Sense

House of Commons · Ministerial Statement

Childcare Entitlements

23 April 2024 · 16 other contributors

Opened by David Johnston Con Constituency

Children & Families

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

David Johnston raised concerns about childcare entitlements in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The Minister announced the successful first stage of the largest expansion in childcare history in England.
  • Working parents will have access to 30 hours of free childcare per week for their children from nine months old until they start school by September 2025.
  • As of April 17th, 195,355 children were already benefiting from the expansion.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

David Johnston

The Minister announced the successful first stage of the largest expansion in childcare history in England, which aims to provide free childcare for working parents from when their children are nine months old until they start school. The statement highlighted that by September 2025, working parents will be able to access 30 hours of free childcare per week for their children from infancy onwards. As part of the expansion, 195,355 children were already benefiting as of April 17th and have since surpassed 200,000. The system involves parents applying for a code that they take to a provider to validate it for obtaining a place. To support the roll-out, the Government plans to provide additional funding over two years, estimated at £500 million, to ensure rates keep up with cost pressures and increase staff pay. Furthermore, recruitment campaigns are being launched, changes in the early years foundation stage have been introduced, and a pilot scheme to repurpose unused school space for childcare is underway.

Other contributors (16)
  • Helen Hayes Lab Dulwich and West Norwood

    Question

    The Shadow Minister asked for details on how many codes have been converted into actual childcare places, questioned where the additional £500 million of investment is coming from, and inquired about discussions with the early years sector regarding financial sustainability. She also requested a guarantee that every family will be able to access a childcare place following further expansion.

    Minister reply

    The Minister responded by acknowledging the challenges but emphasised the successful roll-out so far, stating that 81% of codes had been validated as of April and expected numbers to grow. He confirmed that £500 million is part of the Chancellor’s funding commitments over two years and indicated ongoing discussions with the sector to ensure financial sustainability.

  • Helen Hayes Lab Dulwich and West Norwood

    Question

    The MP questioned the credibility of the Government's childcare plans given the red lights across the board. She raised concerns about staffing shortages, the reduction in places offered by providers, and a critical report from the National Audit Office. Helen Hayes asked for details on how many codes issued have translated into provision of childcare places, funding sources, discussions with the sector on financial sustainability, and guarantees that every family will be able to access childcare.

    Minister reply

    The Minister responded that staffing had gone up by 13,000 before expansion began. He stated that applications for vacancies at group-based providers increased from two to five per vacancy. The Minister confirmed 200,000 children are benefiting from the April expansion and noted rates will increase significantly in September. Funding for further increases would come from day-to-day spending without specifying cuts elsewhere.

  • Catherine McKinnell Lab Newcastle upon Tyne North

    Question

    The MP asked about staffing increases, funding sources for the 2025-26 and 2026-27 expansions, and the quantum of increase for under two-year-olds compared to current private sector rates.

    Minister reply

    The Minister stated that staffing increased by 13,000 before expansion began. Funding for further increases will come from day-to-day spending without specifying cuts elsewhere. He assured continued work with local authorities on unlocking private sector investment and capital.

  • Robin Walker

    Question

    The MP welcomed the 13,000 places but expressed concern over securing more funding and ensuring the same quantum of increase for under two-year-olds as for two-year-olds.

    Minister reply

    The Minister confirmed a doubling of childcare spending from £4 billion to £8 billion. He assured continued work with local authorities on unlocking private sector investment and capital.

  • Stella Creasy Lab Co-op Walthamstow

    Question

    The MP questioned the cost of childcare, noting that over half of nurseries and pre-schools say funding does not cover costs. She requested data on fees paid by parents before and after changes in hours.

    Minister reply

    The Minister cited a survey showing rates for under-twos are £4 more per hour than privately paid rates. He stated the Government’s rate for under-twos is over £4 more per hour than that paid by parents privately.

  • Vicky Ford

    Question

    The MP inquired about capital funding to help nurseries expand, citing a council-run nursery that could not secure space despite wanting to expand.

    Minister reply

    The Minister noted £100 million was allocated last year for providers like the one described to expand and upgrade buildings. He suggested checking what the local authority is doing with this money.

  • Richard Foord Lib Dem Honiton and Sidmouth

    Question

    Last year, 3,000 childminders left the sector. The Early Years Alliance estimates that the current offer for three and four-year-olds is underfunded by £1.8 billion. Devon receives just £5.20 of funding per hour for childcare compared to Westminster's £8.17 per hour. What will be done to address this imbalance?

    Minister reply

    In September, we added over £200 million and in April another £400 million to increase rates, partly to help providers meet the costs of a 9.7% national living wage increase. We also introduced a childminder grant scheme and are consulting on measures to ease their work.

  • Tim Loughton

    Question

    What is being done to support workplace childcare providers, especially in hospitals? How is the Government encouraging more men into the profession?

    Minister reply

    We expanded funded childcare from 12.5 hours to 30 hours each week for children aged nine months and above. We encourage flexibility for irregular working patterns and have a recruitment campaign focusing on attracting more men.

  • Sarah Owen Lab Luton North

    Question

    Coram reports that just 6% of local areas have sufficient childcare places for children with special educational needs and disabilities. What is being done to ensure these children can access necessary childcare?

    Minister reply

    We work closely with every local authority to ensure sufficient places, including for children with SEND. No local authority has reported a lack of such provision.

  • Maria Miller

    Question

    How will the expanded childcare offer help parents return to employment and address the gender pay gap?

    Minister reply

    The expansion may enable more people, particularly women, to enter or increase their hours in the workforce. The Office for Budget Responsibility expects 60,000 new entrants and a 1.5 million hour increase due to childcare access.

  • Claire Hanna SDLP Belfast South and Mid Down

    Question

    What support will be provided for Northern Ireland parents who are not receiving these changes, given the high costs of childcare there?

    Minister reply

    We encourage more people to claim tax-free childcare. The £2,000 limit is doubled for children with special educational needs and disabilities.

  • Greg Smith Con Mid Buckinghamshire

    Question

    With demand potentially outstripping supply in places like Buckinghamshire due to competing cost pressures from London, what special considerations will be given?

    Minister reply

    Rates vary by location based on provider costs. Local authorities must pass 95% of funds received directly to providers.

  • Kerry McCarthy Lab Bristol East

    Question

    What modelling has been done to ensure rates keep up with provider cost pressures, especially in high-overhead areas like Bristol?

    Minister reply

    Projections for 2025-26 and 2026-27 are based on economic conditions. The Minister will write to the hon. Member regarding specific modelling for Bristol.

  • Jack Brereton

    Question

    What more can be done to support childcare providers in Stoke-on-Trent and Staffordshire, particularly in terms of expanding available places?

    Minister reply

    Our focus is on ensuring sufficient staff and places nationally. We are working to increase recruitment, raise rates, encourage new entrants into the sector, and facilitate expansion.

  • Andrew Gwynne Ind Gorton and Denton

    Question

    How do we reconcile Coram's report that 35% of local authorities are lacking in childcare provision for children under two with the Minister’s statement that no authority reports insufficient places?

    Minister reply

    Local authorities were supported up to roll-out dates. Since April, no authority has reported a lack of sufficient places.

Shadow Comment

Helen Hayes

The Shadow Minister criticised the Government's approach to expanding childcare provision, noting that despite the announcement in last year’s Budget, there has been a lack of detailed and credible plans leading up to the roll-out. She highlighted concerns about staffing challenges within the sector, with data showing that many providers are struggling to recruit necessary staff due to financial constraints and high costs. The response also pointed out that only 28% of local authorities are confident in having enough places for children under nine months old, indicating significant gaps in delivery. Additionally, she questioned how the £500 million funding commitment would be funded and raised concerns about the sustainability of childcare providers due to financial pressures.

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