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Childcare Reform Package

28 June 2023

Lead MP

Claire Coutinho

Debate Type

Ministerial Statement

Tags

EmploymentBenefits & WelfareParliamentary ProcedureChildren & FamiliesLocal Government
Other Contributors: 14

At a Glance

Claire Coutinho raised concerns about childcare reform package in the House of Commons. A government minister responded. Other MPs also contributed.

How the Debate Unfolded

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

Government Statement

EmploymentBenefits & WelfareParliamentary ProcedureChildren & FamiliesLocal Government
Government Statement
With permission, Madam Deputy Speaker, I would like to make a statement about the progress we have made towards delivering childcare reforms announced in the Chancellor’s spring statement. From September 2025, working parents will be able to access 30 hours of childcare per week for 38 weeks per year from when their child turns nine months until they start school. Working parents on universal credit can now claim £951 a month for one child and £1,630 for two or more children, an increase of roughly 50% from previous limits. The Government will help eligible parents cover the costs of the first month's childcare when entering work or increasing working hours by reimbursing up to 85% of these costs. These reforms aim to support one of the Prime Minister’s key priorities—to grow the economy—by removing barriers for families on universal credit. From September, local authorities will receive £204 million extra funding to increase hourly rates paid to providers, with an average hourly rate for two-year-olds going from £6 to around £8 and over £5.50 for three to four-year-olds. By 2028, the Government expects to spend more than £8 billion per year on early years education, doubling current spending. The Government also plans to invest up to £180 million in training and qualifications for the early years workforce and launch a national campaign next year to promote recruitment and retention in the sector.

Shadow Comment

Robin Walker
Shadow Comment
I congratulate my hon. Friend on this important statement. I agree with her that childcare is worth investing in, especially with the changes to universal credit and additional funding for local authorities to distribute to providers. However, we need to ensure capacity in the system to meet the challenge of providing all that additional childcare and avoid aggressive top-slicing by local authorities. The announcement of £8 and £11 rates for younger years needs to be delivered so that frontline providers receive the announced funding.
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