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?

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 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.

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.

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.