Childcare: Affordability and Availability

The MP highlighted that the cost of childcare is one of the most pressing issues for working families in her constituency. She cited specific figures from Northern Ireland, showing how high childcare costs leave many families with insufficient income to cover basic needs. Lockhart emphasized the need for work to pay and called for support for grandparents who provide wraparound care without compensation. She also urged the Chancellor to increase the tax-free childcare allowance.

In Scotland, only 43% of eligible families are taking up free childcare for two-year-olds due to various problems. The Government should improve awareness and support for this benefit.

The high cost of childcare in the UK compared internationally hinders economic activity and workforce participation, particularly among people from poorer backgrounds who struggle to afford support.

Childcare is vital social and economic infrastructure that helps parents work, provides early education to children, and underpins economic growth. However, the cost of childcare has risen significantly in recent years, with average costs for nurseries and childminders ranging from £124 to £140 per week. The Women's Budget Group estimates that 1.7 million women are being held back from taking on more hours at work due to high childcare costs.

The MP noted that 514 constituents in Leigh have signed a petition to extend the 30 hours of free childcare to one and two-year-olds. He highlighted the economic hardship faced by families, where childcare costs are prohibitive, leading to sub-economic conditions for going back to work. Grundy emphasized the importance of considering childcare as part of infrastructure spending and suggested making provisions for nurseries alongside housing developments.

The cost of full-time childcare in Northern Ireland is £170 a week, or £8,000 annually. This burden forces families to rely on grandparents or reduce working hours, plunging them into poverty.

The Government has doubled the money spent on childcare and extended free provision, but there are challenges such as losing 300 childcare settings in the last year due to funding not keeping up with the national living wage increase. The minister needs support from Treasury to increase funding for the 15 and 30 hours of free childcare to make it sustainable.

Ofsted figures reveal that 10,000 childcare providers closed last year, resulting in a net reduction of 4,000. Many closures are in poorer areas where families struggle to afford childcare. The Liberal Democrats contributed significantly to childcare provision during their time in the coalition government. The Department for Education's day-to-day spending, which includes early years funding, is set to be cut by £500 million under last November's autumn statement. This could be very damaging for families.

Ms Baillie discussed the challenges of childcare affordability and availability, highlighting that costs are unsustainable for many families. She proposed several recommendations including new childcare credits, expanding family hubs, and provider-side reforms such as stimulating the childminder market. She also suggested considering home child carers to bring more flexibility into the market. The hon. Member for Stroud inquired whether Labour has costed its proposals for full universal childcare from nine months, expressing interest in seeing specific financial details behind such initiatives.

For many families, the lack of childcare support between six months and two years is a barrier to employment. At six months old, it becomes impractical for parents to work without proper care. Ms Creasy highlighted the dissatisfaction among parents due to unaffordable and insufficient childcare. She emphasized that children start learning very early on, making investment in early education crucial. The number of women economically inactive due to caring responsibilities has increased by 53,000 in the last year alone, affecting families' financial stability. Only 0.06% of developer contributions have been spent on childcare, indicating a need for better allocation of funds. She called for support from Treasury Ministers and suggested treating childcare as economic infrastructure. Ms Creasy also mentioned that 85% of providers are operating at a loss, underlining the importance of investment to improve the system. Points out that since the scheme began to give parents 20% off their childcare costs in 2017, an average of £2 billion to £3 billion a year has gone unclaimed. Asks what conversations the Minister has had with the Treasury about reclaiming this £17 billion for tackling the cost of childcare.

Tim Farron highlighted the high cost of childcare, making work unaffordable for many parents. He cited examples from his constituency where childcare costs exceeded wages or mortgage payments. Providers are struggling due to insufficient funding, leading to closures and reduced access to services. The maximum monthly cap for childcare through welfare benefits has not increased since 2016.

Research shows that the covid pandemic widened the inequality gap for ethnic minority and disadvantaged children who missed out on formal early learning. The Government must focus on reversing this trend by ensuring equitable access to quality early years education.