Commons Sense

House of Commons · Westminster Hall

Childcare: Affordability and Availability

20 December 2022 · 5 other contributors · 6,787 words

Opened by Tan Dhesi Lab Slough

Responding minister: Claire Coutinho

Women & EqualitiesChildren & Families

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

Read the full transcript on Parliament.uk

At a glance

Tan Dhesi raised concerns about childcare: affordability and availability in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the high cost of childcare in England, with a 60% increase since 2010.
  • Parents, especially women, are being forced out of the workforce due to unaffordable childcare.
  • Over 4,000 childcare providers closed between March 2021 and 2022.

Key requests to Government

I ask the Minister to commit to investing more than £2 billion in the childcare system and to ensure that parents are not forced to sacrifice meals or heating during winter months due to childcare costs. Additionally, I urge the Government to introduce universal primary breakfast clubs and invest in local children's centres rather than cutting them.

How the debate unfolded

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

Opened the debate

Tan Dhesi Lab Slough

I am concerned about the chronic lack of affordable and high-quality childcare in England. Parents are facing a 60% increase in childcare costs since 2010, with average earnings growing at only half that rate. This is particularly affecting women, who are increasingly being forced out of the workforce due to unaffordable childcare, leading to a 3% rise in non-working mothers in the last year alone. Childcare providers have also been closing at an alarming rate, with over 4,000 closures between March 2021 and 2022.

Other contributors (5)
  • Alex Sobel Lab Co-op Leeds Central and Headingley

    I acknowledge the huge benefit that has for parents, especially those getting back into work, but we have a real issue with providers, because the gap between the funding and the cost to providers is around £2 per hour for those voucher places. Nurseries in Leeds have closed because of that funding gap and others are under severe pressure. What will the Minister do to ensure that those nurseries can survive and thrive, not just at a price to the provider because the vouchers are in place?

  • David Simmonds Con Ruislip, Northwood and Pinner

    He discussed the development of childcare policy in the UK since Labour's focus on availability to encourage women back into work to the coalition government's emphasis on quality and qualifications. He praised tax-free childcare and universal credit for working families but noted issues with payment processing delays. He highlighted local authorities' role in providing information services, free hours for low-income households, and holiday activities programmes. Simmonds concluded by urging a national debate on reallocating education funding towards early years to improve child outcomes. The last year for which we have figures available shows that a total of £62 million in unspent funds was ringfenced within the dedicated schools grant for early years. That is money that the Government have made available that cannot be spent because the funding formula means that a council, for example, cannot reallocate it to increase the funding rate to its local settings and it can be spent only in accordance with the constraints of the national funding formula. While that would not go all the way towards bridging the gap, will the Minister consider looking again at the funding formula regulations, so that local discretion could allow funds that are already allocated to be redistributed in a way that might help address some of the policy issues that she has outlined?

  • Helen Hayes Lab Dulwich and West Norwood

    Helen Hayes emphasised the importance of childcare as social infrastructure, highlighting rising costs, provider closures, and a complex funding system. She cited statistics on childcare expenses exceeding domestic costs for many parents and affecting workforce participation rates among women.

  • Lisa Cameron

    Agrees with the hon. Gentleman's speech, noting that nurseries are crucial for early detection of special needs like autism. Expresses concern about lesser funding for training placements of educational psychologists and their need to fund their own placements.

  • Stephen Timms Lab East Ham

    Welcomes the case made by his hon. Friend and congratulates him on securing the debate. Highlights two problems in the support for childcare costs in universal credit: up-front payment of first month's childcare costs and a cap that has not been adjusted since 2005.

Government Response

Claire Coutinho

It is a pleasure to serve under your chairmanship, Mr Hosie. I thank everybody for coming to this end-of-term debate and congratulate the hon. Member for Slough on securing it. Early years are crucial for children's development and parents' ability to work; I recognise the challenges facing the sector and thank staff across the country. The Government have invested over £3.5 billion in each of the last three years on early education entitlements, with additional funding announced: £160 million in 2022-23, £180 million in 2023-24, and £170 million in 2024-25. Over 97% of settings are rated good or outstanding. We provide the 30 hours free childcare entitlement, which has helped nearly 350,000 children this year, saving families up to £6,000 annually. Additionally, we support disadvantaged two-year-olds with 15 hours free early education and have extended eligibility for children in no recourse to public funds households. We continue to monitor childcare sufficiency to ensure availability and accessibility, supporting local authorities where necessary. The Government remain committed to evaluating further improvements to help parents access quality childcare that fits their needs.

▸ Assessment & feedback
Summary accuracy