Early Years Providers: Government Support

Wednesday 9th July 2025 Westminster Hall

[Mark Pritchard in the Chair]

14:30

[Michelle Welsh (Sherwood Forest) (Lab)]

I beg to move,

That this House has considered Government support for early years providers.

It is a pleasure to serve under your chairmanship, Mr Pritchard. I requested today’s debate on Government support for early years providers because too often the early years are left out of the discussion on education, and the impacts that they have on children’s lives and futures are not always given the respect that they deserve. I agreed with my right hon. Friend the Secretary of State during Monday’s statement when she called early years providers

“the hidden heroes of our communities.”—[Official Report, 7 July 2025; Vol. 770, c. 682.]

I am determined to see them hidden no longer.

Just over a year ago, I made the decision to stand to be a Member of Parliament because I believe that where people start in life should not determine where they end and what opportunities they should have. I spent many years in Nottinghamshire and Derby setting up Sure Start centres under the previous Labour Government. Then I had to watch Sure Start centres being dismantled and the most disadvantaged children having their support ripped away from them. That is the very thing that drove me to stand to be a Member of Parliament.

The injustice should never have been allowed to happen, and it is time to deal with the legacy of 14 years of a Conservative Government. In the UK, 4.5 million children are living in poverty; there are more than 4,000 in my constituency of Sherwood Forest. Almost 2.2 million children are on free school meals—just over one in four children in England. Half of those children will not reach a good level of development by the age of five. According to the Sutton Trust, the attainment gap between children on free school meals and their peers has widened to 20%.

Before I was elected, I worked with vulnerable children and I saw day in and day out how influential a child’s start in life can be on their future. I also saw how incredible Sure Start centres were in changing the lives of families in disadvantaged communities. I cannot express how excited I am to learn that the Government will be modelling their family hubs in a similar way and that they will be rooted in disadvantaged communities.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Ellie from Wincanton in my constituency has autism spectrum disorder, attention deficit hyperactivity disorder and a specific learning disability. She was not diagnosed during her early education and did not have the support framework around her, so I am really pleased that the Government’s Best Start family hub expansion could help early identification, particularly of special educational needs and disabilities, but does the hon. Member agree that the strategy must be matched with sufficient funding, especially after the Tories trashed early years provision?

[Michelle Welsh]

I thank the hon. Member for that point. What happens on SEND in early years is vital. I actually saw that and how it happens. Some of it is about funding, but a lot of it is also about changing how we work. At the moment, how we work is not for the benefit of the child and the family. Services that surrounded families and children for years and years were taken away and dismantled, and now parents and children are left in a very lonely position, especially when they have SEND.

We have to look more broadly. We could throw as much money as possible at this, but actually we have to fundamentally change how we work and think about what support services we really need to surround the child. I am hoping that my hon. Friend the Minister might be able to confirm whether any of the family hubs might be in my constituency of Sherwood Forest—a little cheeky question there.

It is well established that the first few years of a child’s life are critical in supporting their physical, mental and emotional development in the long term. Children’s brains grow and adapt so quickly, particularly in the first few years. The experiences that they have can have lifelong effects, which is why interventions at that stage of life are crucial, especially for children from disadvantaged backgrounds.

One of the most key elements of a Sure Start centre was the pathway from birth to childhood. Ensuring that families had access to midwifery and maternity services and health visitors meant that families were prepared and equipped with essential skills and even basics such as how to feed their child. At a time when maternity services across the country are under immense pressure, ensuring that families and children are supported in the community by these hubs is vital. I hope that under this Government and the new “best start in life” strategy, there will be a clear pathway from birth and that the Department for Education will link up with the Department of Health and Social Care to ensure that.

I was particularly excited to see childminders included in the strategy, as my mum was a childminder for many years. For too long, childminders have been treated separately and not taken as seriously as more formal educational settings. Growing up watching my mum, I have seen at first hand the impact that childminders can have on a child’s life and how important they are to supporting families. Would the Minister reassure me on the role that childminders will play in the Best Start programme?

Early years also impacts a child’s future through school readiness. Attending an early years provider, whether a private nursery, a school nursery, a childminder or something else, can prepare children for not only the academic side of school but the social element. Allowing children to meet and interact with others of the same age helps them to socialise and it supports their ability to engage with structured learning environments. It also helps children to build confidence, curiosity and resilience, which are all strengths needed for later education and life. By addressing developmental needs early on, early years education can reduce disparities in achievement and promote more equitable outcomes for all children.

A key element of early years provision, which I feel is often left out, is the power of play: 20% of a child’s week is spent in the playground. Play is so important for a child’s imagination, creativity and confidence in interacting with other children. I want to highlight the OPAL—outdoor play and learning—programme, which is a mentor-supported school improvement programme that aims to help schools to improve the quality of play. By ensuring that early years providers have the necessary equipment and staff training, children have time to play, which is effectively utilised to build skills in language, problem solving and teamwork. It can be as simple as giving children the blocks to build their own fort or a bucket and spade for a sandcastle.

Preparing children with as many skills as possible, as soon as possible, only increases their opportunities in school and, ultimately, their opportunities when they are adults, yet access to high-quality early years provision is not equal for all children across the UK. Disadvantaged children and those with special educational needs and disabilities are more likely to struggle to access early years provision in England. The Education Policy Institute found that, for children in reception with an education, health and care plan, the attainment gap in 2023 was 19.9 months compared with children without one. That is more than a whole school year. The gap only widens. The gap for pupils at the end of primary school is around 27 months, and by the end of secondary school, the gap reaches almost 40 months. That is over three years. If we do not attempt to address that gap at the earliest stage, children with SEND will always be on the back foot, and that is not right or fair.

I am concerned about the rising costs of childcare and the impact that it will have on children who are already starting from behind. Childcare must be affordable for both families and providers. The Government’s decision to deliver an entitlement of 30 hours’ funded childcare a week for working families will be key to driving children out of poverty and it will massively improve their outcomes in life.

I was pleased that two nurseries in Sherwood Forest were among the 300 schools that the Government announced are to receive the school-based nursery grant: Samuel Barlow primary academy in Clipstone and Lake View primary and nursery school in Rainworth. However, I have heard concerns from some private nurseries in Sherwood Forest that the Government funding does not cover the costs of the free days of care. That leaves nurseries no choice but to pass those costs on to paying parents; in the worst cases it means that they must close entirely. It is vital that providers are able to stay open at a time when we so desperately need them. Have the Government investigated concerns that the funding from Government does not go far enough to cover the costs faced by nurseries?

Investment into our early years providers makes a difference; there is no doubt about that. Little Elms in my constituency provides a fantastic early years learning environment to children in the Dover Beck and Lowdham wards, and it has recently been granted permission and capital funding by the council to expand and build an extra building, allowing it to offer 17 more spaces for children in the community. That extra space will mean they can employ more early years workers, too. It will make an incredible difference in just one community in Sherwood Forest.

Across the country, there are so many providers doing incredible work for our children, including Busy Bees in Vicar Water in Clipstone, which was rated outstanding by Ofsted. I want to say a heartfelt thanks to all those workers in Sherwood Forest and across the country. As we push forward with ensuring every child has the best start in life, I remind the Government of the importance of taking early years providers with us and urge them to give providers the support and tools they need to succeed.

14:40

[Caroline Voaden (South Devon) (LD)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. I thank the hon. Member for Sherwood Forest (Michelle Welsh) for securing this important debate. High-quality early years education is one of the most important investments we can make in not just children’s development but the future of our society. The early years shape everything that follows, laying the foundations for learning, wellbeing and opportunity, but too many children are still starting school without the basic skills they need to thrive. Gaps in communication, language and social development are showing up early, and for too many they persist throughout their education and beyond.

We cannot accept a system where a child’s background determines their chances in life, as the hon. Member set out so clearly. That is why well-supported, high-quality early years settings are so important, especially for children from disadvantaged backgrounds. Those environments can transform life chances. They give children the stability, stimulation and support they need to grow, learn and thrive.

The evidence is clear: the earlier we act, the greater the impact. The extension of free childcare to younger children has huge potential, and I welcome two new school-based nurseries in my constituency in Paignton and at Furzeham primary in Brixham, but to truly benefit families and children, this must be about quality, not just hours. That means supporting the people at the heart of this system: the early years workforce. Nursery staff, childminders and early years professionals play a vital role in children’s lives, often forming their first important relationships outside the home. They are educators, role models and a lifeline for many families. We must invest in their training, development and career progression. If we are serious about addressing the SEND crisis, additional training is crucial, as is support from qualified professionals in early years settings such as speech and language therapists.

To tackle recruitment and retention challenges, the Liberal Democrats would introduce a career strategy for nursery staff, ensuring that most people working with two to four-year-olds hold, or are training for, relevant early years qualifications. We would also restore childminding as a valued part of the system by creating a single streamlined childcare register and commissioning a practitioner-led review to simplify regulation, cut red tape and attract new childminders, while keeping high standards.

Of course, families themselves also need support. That is why the Government’s commitment to family hubs has such promise, and I welcome it. These hubs have the potential to spot emerging needs early and provide parents with the tools and confidence to give their children the best start in life, whether that is understanding the importance of reading and play, managing screen time, supporting good nutrition or sleep, or simply helping parents to feel more confident. Family hubs can be transformative.

This is a moment of real opportunity. With the right focus, investment and support for our workforce and families, we can build a high-quality, inclusive early years system that will change children’s lives for the better.

14:43

[Juliet Campbell (Broxtowe) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. I thank my hon. Friend the Member for Sherwood Forest (Michelle Welsh) for securing this important debate. I welcome the Government’s efforts to make early years provision more accessible, and I am proud that they have taken the necessary steps to better support young families and give every child the best start in life.

The importance of early years providers is well understood. Studies have shown that high-quality early years support influences later wellbeing for both mental and physical health, as well as building resilience. We know that high-quality early years support affects attainment during the early years and future education. However, families in disadvantaged areas tend not to access early years services as frequently as families in more affluent areas. Currently, only 36% of families in the lower income bracket use formal childcare services during the early years, compared with 73% of those from higher earning families.

Children who do not receive early years education and support can be significantly disadvantaged. They are more likely to experience developmental deficiencies and deficits, leaving them lagging behind. That should not be the case. The economic gap in accessing early years provision can mean that some children begin primary school or early education without the necessary skills they need to effectively transition to that stage.

The early years foundation stage statutory framework sets out the specific skills that children should have developed by the time they arrive at school, including being toilet trained, simple letter recognition, and socialising with their peers. Children who do not access early years provision are less likely to be equipped with those skills, which means that teachers face increased pressure to bring those children up to the required standard.

When children arrive without the necessary skills, teachers are forced into the role of parent in an environment where their role is to be an educator. That can reduce the quality of teaching for the whole classroom, and the delivery of the curriculum is slowed down. I therefore welcome the Government’s commitment to ensure that every child has the best start in life. That involves providing support to parents, and children, from pregnancy to age five, and making early years services more accessible to lower-income families. To echo the words of my hon. Friend the Member for Sherwood Forest, someone’s background should not determine their outcome.

However, there is still work to be done. For example, I would like to see dedicated outreach efforts in areas of deprivation to help close the inequality gap between those who access early years services and those who do not. Every child should arrive on their first day of primary school with the skills that they need to thrive. Will the Minister therefore commit to implementing dedicated outreach and parenting programmes for the most deprived areas, as an essential part of making sure that support reaches families who need it the most? In doing so, we help both parents and teachers provide the best start in life for every child.

14:46

[Lisa Smart (Hazel Grove) (LD)]

It is a pleasure to have you in the Chair, Mr Pritchard. I commend the hon. Member for Sherwood Forest (Michelle Welsh) on securing the debate and on her speech, much of which I really agreed with. High-quality early years education is the foundation of young people’s learning and makes an enormous difference to how they settle into primary school and to the rest of their time in formal education settings. There is so much evidence of the role of the first 1,000 days in the lives of all children.

I recently had a great time when I visited Brown Bear nursery and pre-school at Great Moor in my constituency. As well as having a really fun session creating art with some of the little learners, I spent time talking with the nursery’s highly experienced director, Wendy, about the impact of the ongoing challenges faced by nurseries across the UK. Staffing costs make up 70% of the nursery’s outgoings, and the increase in employer national insurance contributions has led to substantial staffing cost increases—and that is before taking into account the changes to business rates. Wendy described the cumulative impact as absolutely crippling. As a Liberal Democrat, I of course supported the calls for the Government to exempt early years education and care providers from the rise in employer national insurance contributions, the result of which has been, as expected, even more strain on nurseries like Brown Bear that are already under enormous pressure.

In 2019, Wendy helped to set up a network for private providers in Stockport, which has since been going from strength to strength. The Stockport private providers network now includes 63 day nurseries, 22 pre-schools, 220 childminders and eight independent nurseries. The early years sector is primarily led by women, and it is worth us all reflecting on the way our society looks at women-led sectors, whether that is early years, care or even the multibillion-pound hair and beauty industry. It is important that we look at how we value those sectors.

[Cameron Thomas (Tewkesbury) (LD)]

I wholeheartedly agree with my hon. Friend. Does she have any thoughts on how we could attract more men to the industry?

[Lisa Smart]

I am grateful to my hon. Friend for that important intervention. We spend a lot of time talking about the gender balance in various industries. My hon. Friend spent time in the armed forces, and I know that the armed forces think long and hard about how they recruit and retain women in particular. Men are often really under-represented in early years education, in care settings, and so on, and they would have so much to add, particularly for those children who do not have many male role models at home or in their families. I look forward to the Minister commenting on that hugely important point, because he is the one in Government and will, I am sure, have all the answers.

Anybody who has had to spend time caring for multiple toddlers will know the skill, diligence, energy and resilience needed to do the job well. It is right that we expect high standards from our early years providers. High-quality early years education is crucial for ensuring that children from any background can go on to achieve their potential. However, many nurseries across Stockport and, indeed, across the country will find it difficult to improve or even maintain their good and outstanding ratings as their finances continue to be squeezed.

[Sarah Dyke]

I think my hon. Friend is coming to an important point that I want to make, too. I recently met Acorn childcare in Somerton, another brilliant women-led nursery in my constituency. Staff there have told me over and over again that they are really struggling with the unsustainable costs and the funding model that is being implemented, plus the free entitlement that they now have to deal with. The spiralling costs are becoming uncontrollable. Does my hon. Friend agree that we must review the rates paid to providers to ensure that they cover the actual costs of delivering good-quality childcare?

[Lisa Smart]

I completely agree that the funding model for early years and nurseries must be sustainable. We do not want to see the business model becoming no longer viable, so that these wonderful providers that give children the best start in life can no longer continue to exist.

There have been Government announcements on the provider agreement, and announcements about how any shortfall in funding can be met by only voluntary contributions. There have also been announcements about staffing ratios. My view—the hon. Member for Sherwood Forest laid out this point really well—is that such announcements do very little to support the quality of provision or staff retention.

For context, private providers across Stockport have told me that since 1999 they have experienced a 250% increase in wages, which is a good thing, but that is in comparison to a funding increase of only 83%. Those two things do not add up. Early years settings are having to deal with the increasingly complex situations that many children face at home, whether that is their special educational needs and disabilities or different situations. The hon. Member for Sherwood Forest was absolutely right to take about far too many children living in poverty, which clearly has a knock-on impact on all education and early years settings. It is important that we restate our request that the Government look at the two-child benefit cap when they make decisions about future planning.

I am approaching my 20th year as a primary school governor, and I am acutely aware of the shared challenges and issues facing children and educators across all settings. If we want to see our young people thrive, the Government must commit to a sustainable funding model for early years care. They must also recognise the true cost of providing high-quality childcare, and not add more pressures to young parents already struggling with the cost of living. I ask the Government to recognise the increasing financial burden on parents, and to understand that proper funding for early years education is really an investment in our children’s and our society’s future.

[Mark Pritchard (in the Chair)]

I call the Chair of the Education Select Committee.

14:53

[Helen Hayes (Dulwich and West Norwood) (Lab)]

Thank you, Mr Pritchard; it is a pleasure to see you in the Chair. I congratulate my hon. Friend the Member for Sherwood Forest (Michelle Welsh) on securing this important debate.

I want by paying tribute to early years providers across the country. The early years sector runs on a powerhouse of dedicated, skilled professionals, the vast majority of them women, who spend every day making a difference to the lives of children. As I pay tribute to early years professionals, I want to recognise the extraordinary work of Laura McFarlane, who sadly died this week. Laura dedicated the whole of her 40-year career to improving the lives of children, most recently as the director of the Lambeth early action partnership, known as LEAP, a 10-year national lottery-funded programme of early years support, and as director of the Liz Atkinson Children’s Centre just outside my constituency. LEAP made a difference to the lives of countless babies and young children in Lambeth, thanks to Laura’s leadership, vision and drive. She will be very much missed. Her legacy is immense.

The early years of a child’s life are vital. They offer a unique opportunity to lay the foundations for learning and development and for good physical and mental health, and to close the disadvantage gap. There is a wide variety of early years providers, including childminders, not-for-profit and social enterprises, private companies, school-based nurseries and maintained nurseries. That makes early years policy more complex than some other areas of education policy, and it also creates challenges, particularly in seeking to secure availability, consistency and quality in every area of the country.

The debate about early years providers can sometimes fall into a false dichotomy between childcare and early education. I have always been clear that these are two sides of the same coin: what is childcare for parents is early years education for children. We want every child to have the highest-quality early years education in whatever setting they are cared for.

[Rachel Gilmour (Tiverton and Minehead) (LD)]

Does the hon. Member agree that although expanding nursery-based provision in schools is unquestionably laudable in improving access to childcare, we must guard against inadvertently passing on to primary school teachers the responsibility for teaching basic life skills that could and should have been nurtured earlier, thereby stretching resources and risking the lowering of standards? Perhaps the Minister could outline what steps his Department is taking to correct the funding and support imbalance so that childminders who provide vital individualised care are not sidelined.

[Helen Hayes]

On the first part of the hon. Lady’s intervention, that is exactly what the Government are trying to do in establishing school-based nurseries: to ensure that across the country there are a range of settings that support children’s development so they arrive at school in reception year ready to learn.

I welcome the Government’s expansion of early years provision through the roll-out of funded hours and the delivery of 3,000 new school-based nurseries. That will make a huge difference to families, giving parents the option to return to work and helping with the costs of childcare, which under the previous Government resulted in many families spending more on childcare than on their rent or mortgage and, for the first time in decades, saw women leaving the workforce because the costs of staying in work were simply unviable.

In delivering the roll-out, it is important that the Government pay close attention to the financial resilience of early years providers. Many providers have been flagging for a long time the fact that the hourly rate they have been paid does not match the costs of delivering funded hours. There have also been inconsistences in the way local authorities pass on the Government subsidy. The previous Government’s funding model created distortions in the costs of childcare, with parents of the youngest children paying very high rates to cross-subsidise the costs of providing underfunded funded hours for three and four-year-olds. Nurseries have also experienced rising costs in relation to energy, food and insurance, and they are also now having to adjust to increased employer national insurance contributions and the increase in the national minimum wage.

Sadly, we have seen far too many early years settings close in recent years because they cannot make their business model work. It is important that the Government pay careful attention to the financial resilience of the sector and take steps to ensure that nurseries do not close due to high costs and inadequate rates of funding.

[Freddie van Mierlo (Henley and Thame) (LD)]

The hon. Lady is absolutely right to point out the eye-watering cost of nursery care for parents. Parents in my constituency tell me that, like me, they spend thousands upon thousands a month, when in other countries it costs just hundreds of pounds a month. One of the most recent contributing factors is the rise in national insurance contributions, which for me increased nursery fees by 10%. Does the hon. Lady regret the Government not accepting Lib Dem amendments to exempt nurseries from the extra charges?

[Helen Hayes]

I do not regret the Government not accepting Liberal Democrat amendments that are not accompanied by any means of plugging the funding gap that would be left by the additional commitments they ask the Government to make, but it is important that the Government continually look at the resilience and sustainability of the early years sector in the light of what are undoubtedly additional costs and challenges that the sector is having to bear. That will be important for the delivery of the roll-out and for provision across the country.

Early years practitioners do such important work. We trust our most precious family members into their care, and they have the capacity to make an enormous difference. Yet there is a recruitment crisis in the early years. We do not value early education and childcare enough, staff are paid far too little, and there are insufficient opportunities to gain specialist qualifications and to progress. I visited the Sheringham nursery and children’s centre in east London, which has a large sign at the gate that reads “Building Brains Here”. The nursery’s work is just that: laying the foundations for the rest of a child’s life. We must find the ways to value early years staff more, promote the early years as a rewarding and vital vocation, and ensure that staff are appropriately paid, with good opportunities for progression.

In that context, I welcome the Government’s newly launched strategy to give every child the “best start in life”, and the commitment to expand the number of stronger practice hubs, such as Sheringham nursery school and children’s centre, which play such an important role in strengthening good practice across the area in which they sit, and to incentivise early years practitioners to work in areas of deprivation where their expertise is so important.

Childminders are often overlooked in the debate about childcare and early years education, but they are a vital part of the landscape of care and education for many families. They play a critical role in the lives of the children in their care and they are the option of choice for many parents and carers, particularly for very young children. The number of Ofsted-registered childminders has been declining for several years, and many earn unacceptably low levels of income.

I welcome the steps the Government are taking in the new strategy to try to stabilise the income of childminders and encourage childminding as a profession, as well as promote innovations in childminding practice, which would help childminders to work together across a local area and in partnership with schools. I also wholeheartedly welcome the Government’s commitment to expand Best Start family hubs, building on the success of the previous Labour Government’s Sure Start programme, the proud achievement of my late predecessor Dame Tessa Jowell.

Sure Start played a vital role in supporting the landscape of childcare, often with a nursery on site plus supporting networks of childminders in a local area, offering them training and development, and building relationships with parents. For the most vulnerable and disadvantaged parents, more is needed than simply making a child place available. Sure Start centres, by offering play-and-stay sessions and parenting classes, built relationships of trust with parents, boosted their confidence and often acted as the gateway to taking up a nursery place, which is beneficial for children, and to re-engaging with the labour market and education for parents. Best Start family hubs are badly needed, and I hope they will play a similar role.

I also welcome the focus in the strategy on the quality of early years provision and inclusion. It is an unacceptable reality that the parents who find it hardest to find childcare places are the parents of children with special educational needs and disabilities, and that approaches to SEND inclusion vary widely across early years providers, which is not acceptable. I welcome the attention the Government are giving to that issue.

Finally, I want to draw attention again to the role of maintained nursery schools within the landscape of early years providers. Maintained nurseries are unique in being constituted as schools and required to employ a headteacher and qualified teaching staff, but they are excluded from the schools funding formula. Their funding has been dramatically eroded relative to their costs in recent years. Maintained nurseries are often beacons of good practice located in areas of deprivation, and are inclusive settings with an expertise in SEND.

The Minister will know that many maintained nursery schools have closed and many that remain are operating with unsustainable financial deficits. I say gently to my hon. Friend the Minister that the response of the Government to my inquiries on this topic, which is largely to push responsibility to local authorities, simply is not sufficient when local authorities are not fully funded to support maintained nursery schools. It cannot be right that, as the Government set out an ambitious new strategy for early years, some of the institutions with the greatest levels of expertise and the most successful track records of delivery are being left effectively to wither on the vine.

I call on the Minister to set out a plan for maintained nurseries, to reform their funding model and ensure their long-term sustainability. The Education Committee, which I chair, will turn attention to the early years in the coming months, and I look forward to making our contribution to scrutinising the Government’s work in this vital sector that makes such a difference.

15:03

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Mr Pritchard. I thank the hon. Member for Sherwood Forest (Michelle Welsh) for highlighting this issue and setting the scene incredibly well. Early years are the foundational building blocks for our society. I read recently about the Shaping Us campaign, led by the Princess of Wales, which strongly focuses on the need for early years support. The campaign highlights that:

“During early childhood, from pregnancy to the age of five, our brains develop at an amazing rate—faster than at any other times in our lives. Our experiences, relationships, our surroundings at that very young age, shape the rest of our lives.”

I subscribe to that not just because the Shaping Us campaign stated it, but because my youngest son Luke and his wife Rachael are staying with us with their two children—Freya is five, and her birthday was Saturday, a week ago, and Ezra is two and a half—and I can honestly say that the two of them absorb everything that happens around them like a sponge. Ezra is not able to speak yet, but he clearly understands everything said to him; we have to be careful with our language and with what we insinuate and do, because he is watching. Freya is the same.

I can absolutely understand why the years from pregnancy to the age of five are so important. Because children are by their very nature innocent, whenever we are having a bad day, they manage to cheer us up with a smile, a hug or whatever it may be. Those things mean a lot to their grandad.

The importance of the early years is well documented and accepted, and this House needs to play a greater role in supporting people to provide an environment for children that ensures that we raise a generation of happy children and highly functioning adults. That responsibility is incredibly important.

I am pleased, as always, to see the Minister in his place. The Minister does not have any responsibility for Northern Ireland—he will probably say, “Thank goodness for that”—but he interacts and exchanges ideas with the Minister from the Northern Ireland Executive. This great United Kingdom of Great Britain and Northern Ireland has a wealth of ideas, and it is good that we can exchange them between the different regions.

Childcare costs, particularly for full-time places, have increased significantly, with some providers experiencing a 14% rise since 2021. According to Employers For Childcare, 43% of providers describe their financial situation as “struggling” or “distressed”. It is essential that parents have access not simply to people who watch their children, but to people who help their developmental progress.

In Northern Ireland, approximately 79% of women with dependent children are economically active. That is a good figure—that means that they are employed or actively seeking work. The spin-off of that, which may sometimes be negative, is that they are entrusting their children to other people, who will spend a lot of time with them. The atmosphere needs to be bright, engaging and, above all, safe. In many cases that will be provided by grandparents, family members and those who have available time.

Nurseries are having to take more children to balance the books, and they need greater support. I want to tell Westminster Hall about some of the things we are doing in Northern Ireland. Childcare is one of the most significant bills faced by many families across Northern Ireland. My party, the Democratic Unionist party, saw that—not that we are better than anybody else, by the way—and our Minister acted on it, so some credit can be given to our Minister for doing so. We instigated a survey of 1,000 parents, which found that nearly 85% of people had their return to work impacted by childcare costs. In other words, people go back to work early because they need the money, or they can put it off a bit longer if granny and granda, uncles and aunts, or other family members will help out.

Almost a quarter of parents also say that childcare costs consumed nearly a full wage in the household. Those figures are incredibly scary. The most recent Employers For Childcare survey highlighted an average cost of some £170 a week, which represents a significant financial hurdle, yet Northern Ireland lagged behind other UK regions in supporting working families, so we decided to do something. The DUP was determined to change this situation, and subsequently brought in the Northern Ireland childcare subsidy scheme in September 2024—it will be a year old come this September. It provides a 15% subsidy for childcare costs to support working parents with children who have not yet started primary school. The NICSS is a really good scheme, not because it was introduced by our party, but because it helps everybody, irrespective of whether they vote DUP in Northern Ireland. That is what politics is about: delivering for all, irrespective of whether people vote for us on the ballot paper.

The childcare is delivered by registered childcare providers participating in the tax-free childcare scheme, or TFC scheme, including daycare providers, playgroups, childminders and approved home child carers. The overarching aim of the scheme is to help working parents with the affordability of childcare costs. The Northern Ireland Executive has agreed that the subsidy scheme will target working parents who are eligible for the tax-free childcare and who have children who have not yet started primary school. It is really important that we have that scheme in place.

[Carla Lockhart (Upper Bann) (DUP)]

My hon. Friend makes a powerful point with regard to the interventions that have been made. However, returning to SEND growth, in Northern Ireland it is outpacing the growth of the general school population, and I believe that late identification of SEND and delayed support for it is one of the biggest failures right across the United Kingdom. So often, children are not identified as having SEND until they reach school age, by which point their language, social skills and cognitive delays are often entrenched. Therefore, does he agree that there needs to be more investment into funding specialist training for pre-school educators, because often early years is the poor cousin of the education system, despite the fact that, as we have already heard, zero to five is the most important time in a child’s life?

[Jim Shannon]

I thank my hon. Friend for that intervention, and the words of a mother and the words on behalf of her constituents are well documented; we thank her for that. She has outlined the issues very clearly.

The tax-free childcare scheme will be extended from 1 September 2025 to include provision for school-age children for families registered with the scheme. There is a lot more to do, but that means that from 1 September 2025 working parents of school-age children will be able to receive the 15% subsidy. The scheme started a year ago by focusing on a limited number of children, but it has done more since. This year, the subsidy will embrace even more people, up to the capped amount on their childcare bills.

To assist with the early years development of their children, parents need to have reliable and affordable childcare. I believe that this House needs to look at providing such childcare for working families, for the very reason that my hon. Friend the Member for Upper Bann (Carla Lockhart) referred to. As I said earlier, I know that the Minister has regular contact with the Northern Ireland Executive and with the relevant Northern Ireland Minister in particular. I would just be interested to know what ideas have been swapped and how we can do things better together. I know that he will see the benefits of the Democratic Unionist party scheme, for instance, and hopefully there can be funding for more schemes that offer such practical help across this great United Kingdom of Great Britain and Northern Ireland.

There is nothing more important than looking after our children. As a grandfather of six, I understand the importance of schooling, as the ages of my grandchildren vary from two and a half right up to 16 and they are going through the system. I can see the improvement that we have made in Northern Ireland. I believe that improvement can be made elsewhere, and I know that this House and the Minister in particular will do their best to make sure that they deliver the best for all children across this great United Kingdom.

15:12

[Mr Connor Rand (Altrincham and Sale West) (Lab)]

It is a pleasure, Mr Pritchard, to serve under your chairmanship, and I thank my hon. Friend the Member for Sherwood Forest (Michelle Welsh) for securing this hugely important debate.

When finding affordable childcare is harder for people than getting their hands on Oasis tickets, it is clear that the system is fundamentally broken. That is the reality for so many parents, and the reality that Labour inherited. A fragmented, underfunded and understaffed childcare system was one of the many messes left behind by the previous Government. And families across Altrincham and Sale West have suffered with the cost of that failure, not just in eye-watering fees but in the loss of earnings that comes from one partner—usually the woman—not being able to return to work after children are born.

This Government are turning that situation around, and in doing so they are supporting family finances and giving children the best possible start in life. Nowhere is that clearer than in my constituency, where Government funding for a new nursery at Altrincham C of E primary school has been secured. This development, alongside 30 hours of free childcare from September, marks a sea change in the support available to local parents.

In the past, we have heard big talk on early years, but it was so often a pledge without a plan; so often, promises have been made without the funding needed to make them a reality. In contrast, this Government are delivering £2 billion of extra investment in early years entitlement, taking our spend to over £8 billion—a 30% increase compared with previous years.

The Early Education and Childcare Coalition states:

“After years of political neglect, it finally feels that someone has taken control of the wheel, and the direction of travel for early education and childcare is hopeful.”

It welcomes the Government’s “Giving every child the best start in life” strategy, published earlier this week.

[Cameron Thomas]

The Liberal Democrats welcome investment in early years. One way in which I hope the Government will ensure that children with SEND and neurodiversity requirements are not left behind is by implementing systems in early years provision that enable SEND and neurodiversity to be identified and addressed sooner rather than later. Will the hon. Member join me in asking the Government to do that?

[Mr Rand]

Yes, absolutely. The sentiment across the House with regard to our SEND system and the need for additional, earlier intervention and support is well founded. I think that is the direction that the Government intend to travel in with their reforms, and I am sure that the Minister will outline that.

Putting trained early years teachers into nurseries generates the best outcomes and the best value for money, but just one in 10 has this at the moment. We need incentives to recruit and retain teachers, and the Government’s efforts in this area so far are welcome. This is about supporting providers to drive up quality. I welcome Ofsted inspections as part of that effort, but I ask the Minister to consider worrying reports that some providers have brought in extra staff on the day of inspections only.

That issue was brought to my attention by my constituent Frances, whose daughter was seriously mistreated at nursery. After the incident, Frances was deeply upset at the lack of safeguarding at what is a well-regarded nursery, and she found it extremely difficult to gain access to the CCTV footage and to hold the provider to account. There must be a balance between supporting providers and supporting parents in ensuring that providers are accountable. I hope that the rights of parents—which the Minister knows is an issue of great importance to me—are an important part of the ongoing reforms to the sector.

We have already made great progress in making it easier and cheaper for parents to access childcare. We delivered the 15 hours of funded childcare last September, and we are delivering 30 hours this September, which will save parents in my constituency up to £7,500 per child per year. It is fantastic to hear that we are building on this with the delivery of new family hubs across the country.

[Anna Gelderd (South East Cornwall) (Lab)]

Our early years providers in South East Cornwall are essential for local families, and they are a cornerstone of healthy development. Does my hon. Friend agree that we need clearer national guidance on term dates, notice periods and transitions between settings? Local authorities need to offer consistent, joined-up support, which would provide families with the clarity and stability that they urgently need.

[Mr Rand]

I know that many local authorities and providers do try to give that assurance in advance, but I am sure that there is more work that they can do to give stability and certainty to parents and families in my hon. Friend’s constituency and across the country.

The family hubs that we are delivering across the country, including in my local authority of Trafford, will drive up quality in our early years system, support providers and strengthen support for children as they enter primary school, which is especially important for the 3,000 children in my constituency who are growing up in poverty. Lots has been achieved, and there is lots more still to do, but as the Early Education and Childcare Coalition said this week, we are heading in the right direction.

15:14

[Jess Brown-Fuller (Chichester) (LD)]

I thank the hon. Member for Sherwood Forest (Michelle Welsh) for securing this important and timely debate—I am sure she intended it to fall in the week when the Secretary of State announced the roll-out of Best Start centres. I also pay tribute to the hon. Lady for her ongoing advocacy for children, parents and early years providers up and down the country, often using her personal experiences to impress the importance of getting this right. Her commitment to the early years is noted across the House. She has also highlighted that early years providers span not just nurseries, but pre-schools, maintained nurseries, childminders, independent nurseries and in-school nurseries as well.

Quality early years education is the single best investment that any Government can make in the future of our society. It supports children’s development at a critical stage of their lives and lays the groundwork for future educational attainment, wellbeing and opportunity. It also matters enormously for families. Flexible and affordable childcare is not just a convenience; it is a vital part of the country’s economic and social infrastructure. With the UK’s statutory parental pay among the lowest in the OECD, parents are often having to choose an early years provider earlier than they might like in order to return to work.

The Government’s plans to expand the 30 hours free childcare entitlement have received broad support across the House, and rightly so. However, I would like to take this opportunity to ask the Minister whether the ambition will be matched with realism. Is he confident that the promise will be delivered? Many providers are already struggling to keep their doors open. In 2023, half of them reported that their income did not cover basic operating costs, and that is before factoring in the Government’s increases to national insurance contributions and the national living wage.

In real terms, the average funding for three to four-year-olds is still below where it was in 2016. While the headlines about expanded entitlement sound impressive, and are no doubt welcome across the country, we have to ask whether it is enough to keep the sector afloat.

[Edward Morello (West Dorset) (LD)]

Over the weekend, I was at a village fête. I will not name the primary school, but I was approached by the head, who told me that with the expansion of the number of hours and the rate that they are being paid, the school will close within 18 months. Even though, by the standards of its sector, it had a reasonable buffer going into this, the cost of delivering the service is not matched by Government funding. This village will lose a vital service as a result.

[Jess Brown-Fuller]

My hon. Friend raises a valid and important point that has been made in various contributions to this debate. At the start of this week, I spent my morning at Fishbourne pre-school. It does not have a lovely name like the Bears or the Acorns—I am quite jealous, actually—but it is a brilliant, popular, charity-run pre-school that is doing everything it can to serve local families.

I was covered in shaving foam the moment I walked through the door. There were activities, messy play and free play going on everywhere. We had a lovely “Wind the Bobbin Up” in the forest school, but I also took the opportunity to talk to the manager of the pre-school. She told me very plainly that, under the new arrangements, not only will their funding model be affected, but they will end up taking fewer children overall. The demand is there—they are already at capacity—but this change will mean that they can serve fewer families in the Fishbourne area.

I think that is what my hon. Friend the Member for West Dorset (Edward Morello) was alluding to: in those rural areas where there is not a huge amount of choice, and just one local service provider, if they can take on fewer children, where are the others meant to go?

[Caroline Voaden]

My hon. Friend is talking about the provision in rural areas. We have a wonderful nursery called Rainbow nursery in Totnes, which serves not only the town but the wider area. There are very few, if any, village nurseries, so lots of people come into the town to use the nursery provision. It is absolutely rammed, with a huge waiting list, and many parents will not even get a place before their child moves on. As other hon. Members have said, it is really struggling, with the free childcare hours, to cover its costs. If that nursery becomes unsustainable, there will be no provision. There are not lots of alternatives, so we are at a really crucial point.

[Jess Brown-Fuller]

I hope that the Minister hears the message loud and clear from across the House that many service providers are flagging this to us in our constituencies. I send my concern to Rainbow nursery—another great name for a nursery.

Fishbourne pre-school is just about covering wages and keeping the lights on, but there is nothing left over for the things that actually make early years special: the new books, the toys and the equipment to support those additional needs. Anything extra for the pre-school has to be raised by the parents via raffles or voluntary donations.

The staff at Fishbourne pre-school were conscientious, engaged and passionate about the young people who they look after. I could tell that they valued every single one of them. I was really pleased to see that it had recently taken on a male member of staff, which goes back to earlier contributions from hon. Members. The nursery manager told me that it is brilliant to have a male presence in the nursery because so many of those children only see females in nursery settings. He is doing a marvellous job and I commend him for it. He was not in charge of the shaving foam.

These professionals value every single one of the children they look after. Do the Government believe that they are valuing those professionals in the same way? The Department for Education itself has said that we will need 70,000 new childcare places and 35,000 additional staff by this autumn. Those already in the sector report feeling underpaid, overworked and under-recognised, despite the enormous responsibility that they hold looking after the most precious members of our families. If the Government are to recruit 35,000 more people into the early years sector, they need to make it an attractive career path.

The new entitlements from September are meant to support all families, but the current design risks deepening inequality. The Institute for Fiscal Studies estimates that 80% of the families who will benefit earn over £45,000 a year. Just 20% are lower income families. That means that some of the children who would benefit most from early years intervention and education are the least likely to get it. I hope that the Minister is across that.

My party has welcomed the Government’s commitment to increasing the frequency of Ofsted inspections for early years settings to keep children safe. As the hon. Member for Altrincham and Sale West (Mr Rand) mentioned, that is incredibly welcome, but there is concern that the numbers on the floor can be boosted the day before an Ofsted inspection. The tragic case of Gigi Meehan in Cheadle and the horrific abuse uncovered at Twickenham Green nursery are searing reminders of what can happen when safeguarding fails. Gigi’s parents, along with my hon. Friends the Members for Cheadle (Mr Morrison) and for Twickenham (Munira Wilson), have long campaigned for more regular and more robust inspections, as they are a vital part of raising standards and safeguarding children.

Going back to supporting the workforce who are delivering this essential care, we need to invest in proper training, setting clear standards for oversight and ensuring that there is a meaningful career path for nursery staff. Requiring a recognised early years qualification and helping staff to access and complete that training is key to building a confident, skilled workforce and ensuring that every child receives the best possible start. So many Members across the House mentioned SEND; that skilled workforce can identify the additional support that a child may need as they move on towards school.

I will briefly touch on the comments by the Chair of the Select Committee, the hon. Member for Dulwich and West Norwood (Helen Hayes), on maintained nurseries. I have a maintained nursery in my constituency, which is relaying the same concerns that she raised: it has the additional onus of employing a headteacher and operating like a school, but it cannot access the funding that schools can. The burden and pressure on its balance sheet are huge, and it is at risk of closing, but maintained nurseries have the greatest majority of SEND children. They are doing those early interventions and some incredible work. I was grateful to visit my local maintained nursery.

[Cameron Thomas]

I was a very nervous father when I handed my daughter to the childminder in her early years setting. She was an absolutely fantastic lady called Jade Bamford in Oxfordshire. When calling for SEND training for early years staff, would my hon. Friend call on the Government to incorporate childminders within that?

[Jess Brown-Fuller]

My hon. Friend raises an important point that childminders are quite often the bedrock of early years provision. So often they are the experts, because they have a small cohort of children so they take the time to understand the needs of every single one of those children that they look after, and I praise them for it.

I would like to briefly touch on the comments made by the Secretary of State for Education during her announcement on school readiness, about children needing to have the ability to sit still. I have two children in primary school. Before they started school, the fantastic nursery that they attended and their primary school were in absolute lockstep on what it means to be school ready. Can they put their own coat and shoes on independently? Can they go to the toilet unaided? Can they hold a pencil? Can they recognise their name if it is written out? There was no requirement for them to be able to sit still, especially in reception where so much of the foundation of their education is rooted in play, as the hon. Member for Sherwood Forest spoke about. I know that the Secretary of State is a mother, and I am sure that she recognises that it was a poorly phrased statement, so can the Minister reassure parents across the UK that play will continue to be the bedrock of early years teaching, and that it will continue throughout key stage 1?

We were very pleased to see the Government’s recent announcements on Best Start hubs and early years workforce support. Those are welcome steps, and I know that a Best Start hub will be really welcomed in my constituency of Chichester. It is a real opportunity to ensure that families have access to all those support networks under one roof.

I will close by asking the Minister a couple of questions. Will he tell us whether the Department will urgently review the funding rates to ensure that they reflect the true cost of delivering early years education, especially in the light of rising staffing and operational costs? Will the Government please consider exempting early years providers from the recent national insurance increase, given the unique pressures facing the sector? What steps are being taken to ensure that the roll-out in September does not leave providers short-staffed and under-resourced? How will the Department support those that are already warning that they may not be able to meet demand?

[Mark Pritchard (in the Chair)]

I will give an extra two minutes to the shadow Minister if she wants them, given that we have a little bit of time.

15:31

[Laura Trott (Sevenoaks) (Con)]

Thank you. It is a pleasure to serve under your chairmanship, Mr Pritchard. I congratulate the hon. Member for Sherwood Forest (Michelle Welsh) on securing this interesting and thought-provoking debate. It is nice to see a degree of unanimity across the Chamber about the importance of early years high-quality provision.

Let me first deal with NICs, because that issue has been raised by a number of hon. Members, not least the Chair of the Education Committee, the hon. Member for Dulwich and West Norwood (Helen Hayes); the Lib Dem spokeswoman, the hon. Member for Chichester (Jess Brown-Fuller); and the hon. Members for Sherwood Forest (Michelle Welsh) and for Hazel Grove (Lisa Smart). We know the impact that it is having on nursery settings up and down the country. It is not right that they are treated differently from the rest of the public sector, given that so much of their provision is entirely state-funded.

The impact of the changes has been talked about in very clear terms in this debate. It has been described as “catastrophic” by the Early Years Alliance. We know that 52% of settings are likely to reduce the number of early entitlement places on offer, and that the changes will result in fees going up for parents. That is not what anybody here wants. I know that the Minister understands that, so in his bids to the Treasury for the upcoming Budget, will he ask—as I am sure he has already—that more relief is given to early years for the provision of NICs?

One of the themes discussed by the hon. Member for Broxtowe (Juliet Campbell)—in what I hope she does not mind me saying was a really excellent speech—and by the Lib Dem spokeswoman, was outreach to disadvantaged areas with the new offer. When we had the offer for two-year-olds, which was just limited by income, the take-up was not what we wanted. Now there is a wider offer, that outreach will be important. I hope that the Minister will speak to that. There is also a link between areas of disadvantage and children who are under the care of a social worker. What more will be done to make sure that social workers are aware of the provision in their local areas, and can direct families who may need it to that provision? That is very important. We know it may provide relief for the parents and a higher quality placement for the individual child. It would be very helpful if the Minister could come back on that today.

I want to talk about school readiness, because I absolutely welcome the Government’s focus in that area, which is very important. As I mentioned in my response to the Education Secretary’s statement the other day, the target we have is for the end of reception. It is therefore not really measuring school readiness as such; it is measuring the work of brilliant reception teachers, up and down the country. That is not actually what we want to measure.

We want to measure the things that the Liberal Democrat spokeswoman talked about: trying to get children ready to go to school. That would reduce the pressure on primary school teachers, rather than increase it. I am sure that the Government’s intention is not to increase it, but it is what will happen as a result of that target. We need to try to get those young people ready to learn and to go to school, because it makes such a difference to their ability to learn. I hope that the Minister will consider that as part of the school readiness work that he has going on at the moment.

As the hon. Member for South Devon (Caroline Voaden) mentioned, I would like to talk more about screens in the context of school readiness. The Government have brought forward a partnership for a national year of reading, which I think we can all agree is very positive, but the one thing that is driving the decline in reading in this country is overuse of screens by young people. I know that the Education Committee has done some brilliant work on this issue. We have to make sure that parents know that too much screen time is just not good for their children. We know that 25% of three and four-year-olds have phones. That is that is not good for them. It is delaying speech development, reading and socialisation, and that is being compounded by the reception baseline assessment now being done on a screen, which implies that children need to be able to use a screen by the time they get to reception.

A recent trip to a primary school alerted me to this. The reception teacher said, “I used to ask them whether they could split this orange apart or not, to be able to check their hand-eye co-ordination. Now it’s all done on a screen.” It is just wrong. If we want a change in school readiness—all Members present are interested in that; that is why we are at this debate—we need an increased focus on reducing screen use by young children, because parents too often just do not know that it is bad for their child. They are trying to do their best, and they think it is fantastic that they can give them a screen with some games on, but actually they are stopping them from being able to play. The hon. Member for Sherwood Forest and others talked about the fact that play is crucial to early development, and we impede that by giving screens to children.

This debate has been really interesting. There is a degree of unanimity on the direction that we need to go in. I hope that some progress can be made on funding for early years provision and that we can try to drive up the usage of the free offers in disadvantaged areas. We need to shift the focus on school readiness to what we need to help parents do to get their child ready for school. I hope that, together, we can shift the emphasis and try to get screens out of young people’s lives, because that is a single thing that we can do to help them with their mental health and their school readiness.

15:37

[The Parliamentary Under-Secretary of State for Education (Stephen Morgan)]

It is a pleasure to serve with you in the Chair, Mr Pritchard. I thank my hon. Friend the Member for Sherwood Forest (Michelle Welsh) for securing a debate on this most important subject. I thank all Members for their contributions, including the Chair of the Education Committee, my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes).

The foundations of success are laid in early childhood. Ensuring that every child has the best start in life and the chance to achieve and to thrive is the foundation stone of the Government’s mission to break down barriers to opportunity. On Monday, the Government published our vision for the future of early years, so this is a timely debate that demonstrates that my hon. Friend the Member for Sherwood Forest clearly has her finger on the pulse on these issues.

Our landmark strategy will bring together early years and family services and put children’s first years at the heart of efforts to improve life chances. “Giving every child the best start in life” sets out the first steps to deliver our plan for change commitment for a record number of children to be ready to start school by 2028. That builds on the work that we have already started and the impacts that have already been felt. We have delivered the biggest uplift in the early years pupil premium on record, opened new breakfast clubs and funded 300 new and expanded school-based nurseries across the country, two of which, I am proud to say, sit in my hon. Friend’s constituency. From September, we are rolling out 30 hours of funded childcare for working parents, saving eligible parents who use their full entitlement an average of £7,500 a year. With the new strategy, we will go further and faster. We will spend close to £1.5 billion over the next three years to make early education more accessible and higher quality.

Central to my ambition to improve outcomes for all children is a diverse and thriving early years sector with a brilliant and valued workforce. We want early years to be a career that people are proud to join and stay in. That means more opportunities to gain qualifications and build fulfilling careers. We want high-quality evidence to underpin training, support and development for early years professionals. That will mean that passionate people can grow their skills and careers, and help every child to thrive.

Alongside a strong market, we want to drive higher standards through strengthened improvement and accountability systems that support and drive high-quality provision for settings and families. That includes funding for Ofsted to inspect more often, and inspect new settings within 18 months of them opening. Our ambition is to make early years education the best it can be for every child in every setting.

The early years workforce is at the heart of the Government’s opportunity mission and a top priority for the Department for Education. I pay tribute to those who are dedicated to the sector and working in it to improve life chances for every child. I declare an interest that my sister is an early years practitioner of 30 years’ standing. I can assure her and everyone who works in the sector that this Government hugely value their work.

As set out in the recent “best start in life” strategy, we are improving the quality of early education by investing in training and qualifications to raise the skill levels of the workforce. We are also increasing understanding of high-quality practice and providing access to proven, evidence-based early years programmes. That is backed with an extra £400 million over the next three years to improve quality and drive better outcomes for children. We will collaborate with the sector to co-design and consult on a new professional register and establish an evidence-informed career framework to support career progression at all levels.

We will recruit more early years teachers in areas where they are needed the most, more than doubling the number of funded early years initial teacher training courses by 2028. The early years teacher incentive will support recruitment and retention of early years teachers in the most deprived communities by giving existing and new early years teachers who work in eligible nurseries £4,500 per annum so that every child, no matter where they live, can benefit from high-quality early education.

We are rolling out a new early years teacher degree apprenticeship and transforming the apprenticeship offer into a new growth and skills programme with shorter, more flexible training options. That includes continuing and extending free online child development training for all staff, and funding more places on the national professional qualification in early years leadership programme.

We are investing in data-driven interventions to support early maths, literacy and language skills, and doubling the number of early years stronger practice hubs from 18 to 36 so that even more settings and childminders can access free resources and training to help their practice. We are helping more people to discover rewarding early years careers through our “Do something big” national recruitment campaign, and building on our pilot to offer financial incentives to attract and retain the best educators, including our campaign to encourage more men to go into the sector.

We are making it easier for managers to check qualifications and increase confidence in staff sufficiency by using the new “Check an early years qualification” digital service. Providers can maximise the potential of staff who have the right skills and experience but do not hold an approved qualification through the experience-based route.

We are working closely with local areas to do everything we can to ensure that there are sufficient places and the sector has the workforce it needs ahead of September. We have already seen a strong response from the early years sector following the introduction of the new entitlement. In 2023-24 we saw nearly three times the growth in places and more than 1.5 times the growth in staff working in early years compared with 2022-23, showing that the early years market is responding positively. Continuing that growth ahead of September will allow more families to benefit from the expansion, and we are determined that the sector receives the support it needs to make that happen.

The strength of our varied and diverse providers gives families a choice of high-quality, flexible options that meet their needs, but it can mean that stand-alone settings miss out on the benefits that come from working together. We will work with the sector to support brilliant settings so that they grow and spread their expertise. We will also explore how providers could, if they choose to, pool back-office functions and overheads so that nursery managers can focus increased efforts on the children in their care.

We want to ensure that the early education and childcare market continues to be financially sustainable, able to create more places where they are needed, and focused on the needs of children. We will continue to monitor the financial sustainability of the market and may take further steps to increase the transparency of the largest providers if necessary. We have seen a decline in the number of not-for-profit providers, especially in the most deprived areas of the country, and we will work with those providers, alongside philanthropy and social investors, to explore new ways to support them to expand, and encourage new providers to open settings.

Turning to the points made by a number of Members about funding, we are expecting to spend more than £8 billion on the early years entitlements this year, rising to more than £9 billion in the next financial year. We have introduced a £75 million expansion grant to support providers ahead of September’s roll-out, and we have almost doubled the early years pupil premium. Our hourly funding rate covers core costs, taking account of cost pressures, including forecasts of average earnings, inflation and the national living wage. We want to ensure that funding is distributed fairly and effectively, reflecting the cost of delivery in different parts of the country. We will renew our approach and set out more detail in due course.

The Chair of the Education Committee is a real champion for maintained nursery schools, which are a valued and important part of the early years system. They are high-quality providers that often focus on disadvantage and special educational needs and disabilities, helping us to give every child the best start in life. To recognise the costs that maintained nursery schools face over and above those experienced by other providers, we provide additional supplementary funding to local authorities for maintained nursery schools in their area. Maintained nursery schools also make crucial contributions to stronger practice hubs, which we are expanding.

With regard to comments made about the Best Start family hubs, ensuring that every child has the best start in life and the chance to achieve and thrive is the foundation stone of our Government’s opportunity mission. We will spend close to £1.5 billion over the next three years on improving family services and early years education to begin the hard work needed. Best Start family hubs will be backed by £500 million of that investment between 2025 and 2029, and we will fund hubs in every local authority area to ensure that the children and families who need support the most, especially those from low-income backgrounds or with additional vulnerabilities, can access it. Through the hubs, families will be connected to other local services such as healthcare, relationship support, housing and job support.

My hon. Friend the Member for Sherwood Forest mentioned childminders, as did the Chair of the Select Committee. Childminders play an important role in the childcare system, offering the flexible and personalised care that many families value. They also tend to look after younger children and are a key part of the provider landscape as we expand funded childcare hours for those children. We have already taken steps to support childminders, including making it easier for them to work from different places, such as schools and other community settings.

We now want to go further. We have listened to the sector, which has consistently called for monthly payments for early years entitlements. I can assure Members that we will work with local authorities and others to ensure that, where they want to be, childminders and other early years providers are paid monthly for the funded hours that they provide, making their income more sustainable. We will also keep working with Jobcentre Plus to encourage more people to become childminders.

The shadow Secretary of State, the right hon. Member for Sevenoaks (Laura Trott), made a number of points on the reception baseline assessment. Digital assessments in primary school happen all around the globe and have been in place for several years in English primary schools, with the multiplication tables check in year 4. The reception baseline assessment is a short assessment to understand children’s abilities when they start reception, in order to enable measures of progress through primary schools. It is conducted on a one-to-one basis with teachers, and guidelines are in place to support pupils on the assessment. A revised version of the RBA, with a digital element, was set out in September. For more questions, pupils will be able to interact with images and items on a tablet screen, supported by a teacher. I can assure all Members that it has been subject to extensive trials with teachers and pupils, which commenced in 2019 under the previous Administration. Feedback from both groups has been positive.

I again thank my hon. Friend the Member for Sherwood Forest for securing this debate on such an important topic. I also acknowledge the engagement of all Members this afternoon, and the dedicated workforce in the early years sector, who do so much for our country. The Government are committed to breaking down the barriers to opportunity, and the importance of the early years cannot be overstated. Our strategy is to start a decade of national renewal for families, giving every child the best start in life.

15:49

[Michelle Welsh]

I thank everyone who has taken part in today’s debate. What is fabulous about this Parliament is the breadth of knowledge and experience regarding early years and childcare, women’s health and all those subjects. Although we may disagree sometimes on how to do this, I think there is a united vision to ensure that every child gets the best start in life. There have been moments of déjà vu in this debate when people have talked about outreach workers linking with social workers and ready-to-go-to-school programmes, because all those were around in the late 1990s under Sure Start and were sadly dismantled in front of my eyes.

I will close by saying two things. First, I think we need to move from talking about school readiness to talking about learning readiness—that is really important. Secondly, and notwithstanding everybody else’s contributions, we have a real chance with the Best Start strategy to make a real difference, and the more voices that can be heard on that, the better. Where you are born should not determine your future, and I am convinced that this Labour Government will make sure that is the case.

Question put and agreed to.

Resolved,

That this House has considered Government support for early years providers.

15:50

Sitting suspended.