Child Care

Andrew Gwynne Excerpts
Tuesday 19th November 2013

(10 years, 5 months ago)

Commons Chamber
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Tristram Hunt Portrait Tristram Hunt
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Today we are concerned with highlighting the record of this Government, and, as I have said before, Labour is the party of Sure Start and of increasing fourfold the provision for under-fives. The values of this party are to ensure that young people have the best start in life, and today we are considering the total disconnect between living standards and the cost of child care.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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Should we not be frankly appalled that although the Prime Minister pledged at the last election not to close Sure Start centres, since the election an average of three Sure Start centres a week have closed? There are now 35,000 fewer child care places at a time when there are 125,000 more under-fours.

Tristram Hunt Portrait Tristram Hunt
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On the 150th anniversary of the Gettysburg address, my hon. Friend delivers an intervention of such succinct clarity that Lincoln himself would be proud.

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Elizabeth Truss Portrait Elizabeth Truss
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I am sorry, but I want to talk about child care.

As well as complete economic ineptitude, Labour seems to have learnt nothing from its time in office about child care or nurseries. It still thinks the answer is spending more money, rather than reform. Baroness Hughes, children’s Minister under the previous Government, admitted that their approach was “probably wrong.” She said:

“We were so keen to stimulate demand from parents but in retrospect that was such a mammoth task. We ought to have focused on the supply side, supporting providers, then we could have done more and quicker.”

I could not agree more, yet Labour has nothing to say about supply; it talks only about spending more money. Let us remember what happened last time it did that. We ended up with some of the highest child care costs in the OECD, parents were paying out 27% of their income on child care, staff had some of the lowest salaries in Europe, contrary to what the shadow Secretary of State said, and under Labour’s preferred measure, prices increased by 50% during the Labour years.

Andrew Gwynne Portrait Andrew Gwynne
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Reports suggest that the Government will not meet their own target of supplying child care places to the 40% most deprived two-year-olds in the country, so will the Minister be open and transparent with the House? Will she meet that target—yes or no?

Elizabeth Truss Portrait Elizabeth Truss
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We have more than 200,000 full-time places available in our system, and we have said that all those eligible children will have places if their parents want to take them up.

Andrew Gwynne Portrait Andrew Gwynne
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What about the target?

Elizabeth Truss Portrait Elizabeth Truss
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I have just answered the hon. Gentleman’s question.

I was talking about why Labour made such a mess of child care. It piled red tape on schools and nurseries, making it harder for them to expand. Furthermore, even though parents like flexible, affordable, home-based care, the number of childminders halved under Labour, because of the level of regulation, the difficulty of becoming a childminder and the fact that the funding system was skewed towards nurseries and away from childminders.

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Jonathan Ashworth Portrait Jonathan Ashworth
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I will take your guidance, Mr Deputy Speaker. I am the father of a two-year-old toddler and now a two-week-old baby girl, as well, so perhaps I should declare an interest. [Interruption.] My hon. Friend the Member for Cardiff West (Kevin Brennan) asks me their names. My two girls are called Gracie and Annie, but enough about my family; let me move on to the substance of the debate.

Investment in child care is one of the most important sets of investment that any Government can make. I think it was my hon. Friend the Member for Manchester Central (Lucy Powell) who made the point a few weeks ago in one of the many articles she writes that we often talk about the importance of infrastructure investment—very topical at the moment, given the controversies over High Speed 2—and that child care should be viewed as an infrastructure investment. I entirely agree. Investment in child care is good not only for our future economic capacity, but for our children. That is what I shall focus on in my speech.

There is a general debate about how to raise the trend rate of growth in this country and how to rebalance the economy. We also debate how, if growth happens, it should be shared fairly and not snaffled away by the privileged few, as seems to be happening under this Government. Investment in child care must be an absolutely central part of building the economy of the future that we all want to see. I consider it to be one of the best social and economic investments that we can make. However, today I want to emphasise the benefits that it has for children.

I am sure all Members will agree that learning begins at birth. The first few years of a child’s life are critical to its development. Children need a stimulating, caring environment: they need opportunities to interact, to be talked to, to play, and to explore in safe surroundings. While I entirely accept that academic researchers differ on what is the right balance for a child between being in child care and being at home and that there are different conclusions to be drawn, it is undeniable that good-quality, affordable child care is central to a child’s development.

Both Front Benchers mentioned Baroness Morgan’s observations on preparing children for school. Academic evidence suggests that children who have experienced child care are much further ahead when it comes to development and readiness for school, but we also know that child care gives society an equality dividend. It helps women, in particular, to move into the labour market, but all too often they are priced out of that market by the cost of child care.

Ministers boast about the state of the economy, and say that we have turned the corner. Some top Tories even claim that they are on the glide path to victory, which I would describe as a brave and, indeed, arrogant prediction. In reality, however, the economic benefits that exist are not being shared. There is a huge squeeze on living standards, and hard-working people are worse off and therefore cannot afford child care. We know from the figures that 2 million children in poverty live in households containing a single earner, and that nine out of 10 of the workless partners are female. Securing good-quality, affordable child care and helping mothers to return to the labour market is one of the best ways in which we can make a significant dent in child poverty numbers. But what is the record of the present Government?

As the Minister knows, I have tremendous respect for her. I listen carefully to her speeches, and read a great deal of what she says. However, the fact remains that the cost of nursery places has risen by 30%, and Ofsted figures show that there are 35,000 fewer child care places. The average bill for a part-time nursery place providing 25 hours a week has risen to £107. Breakfast clubs have been scaled down, and the cost of summer holiday child care places has passed the £100-a-week mark for the first time ever. Although all the academic research tells us of the advantages enjoyed by children and toddlers who have been exposed to books, the Secretary of State—who likes to think of himself as a champion of academic rigour—has halved the Bookstart grant.

The Government have implemented a range of policies that affect mothers. For instance, they have cut the child care element of working tax credit: a total of £7 billion has been cut from working parents’ tax credit. In two months’ time, many of the higher-earning parents whose child benefit is being clawed away will have the taxman knocking on their doors because of the Government’s woeful handling of the situation.

Perhaps the Government’s worst act of vandalism against early-years provision is the fact that there are 578 fewer Sure Start centres. My hon. Friend the Member for Stoke-on-Trent Central (Tristram Hunt) quoted what the Prime Minister said before the last election, but as the Tories have taken it off their website, it is worth quoting again. He said that we were scaremongering. He said that the Government would back Sure Start. He said that it was “a disgrace” that my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) was “trying to frighten people”. The fact remains, however, that we have 578 fewer Sure Start centres. The Tories can take that quotation off their website, like some Bolshevik politburo apparatchik trying to doctor photographs, but we will continue to remind the British people that the Prime Minister promised to maintain Sure Start centres, and that under his Government we are losing them.

Andrew Gwynne Portrait Andrew Gwynne
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My hon. Friend is making a very important point about the breaking of the promises made by the Prime Minister at the last general election. Not only did he say that he would keep Sure Start centres open; he also said that the Government would invest in 4,200 extra health care visitors. How does my hon. Friend think that that target is going?

Jonathan Ashworth Portrait Jonathan Ashworth
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It sounds like an example of “same old Tories”—yet more broken Tory promises.

As I said earlier, I have tremendous respect for the Minister. I watched her carefully as she toured the studios yesterday, when she talked about the Conservative proposal for tax relief. That tax relief, however, will not be introduced until 2015, and I understand that it will apply only to couples when both partners are earning. If a couple have a two-year-old at nursery, one partner is working and the other is at home caring for a newborn child, that couple will receive nothing—zilch. There will be no help for them whatsoever from this Government.