Childcare Bill [HL]

Baroness Pinnock Excerpts

Monday 6th July 2015 Lords Chamber

Moved by

[Baroness Pinnock]

21: Clause 1, page 2, line 23, at end insert—
“( ) Regulations as described in subsection (5)(c) must ensure that the times available provide sufficient flexibility—
(a) to parents who work outside the hours of 9 am to 5 pm, Monday to Friday; and(b) to ensure that childcare is available during school holidays within the local authority area of the relevant childcare provider.”

[Baroness Pinnock (LD)]

My Lords, we are recommencing our discussions on this very important and much welcomed Bill to extend free childcare by 15 hours per week. The purpose of this amendment is to require more explicit flexibility in the provision as outlined. I welcome the Minister’s assurances that there will be flexibility within the provision, but, sadly, that is not entirely clear in the Bill.

What do we mean by flexibility and why is it so important that we have put down an amendment? The Bill would be much improved if it stated that the Government intend to provide 1,140 hours of free childcare per year rather than, as stated in the Bill, 15 hours for each of the 38 weeks of the school year. It would encourage providers to think about the needs of families and their young children. Many parents have non-standard hours of work, often in low-paid work such as cleaning, hotel work or caring for older people, and some parents work shifts, particularly in the nursing profession. All those people would benefit from greater flexibility in the provision. In our view, this will not happen unless there is encouragement and incentive from the Government to do so.

In addition to trying to meet the working hours of parents, there is the additional challenge of providing free childcare during the school holidays: the 14 weeks of the year in which schools are not working. That is a not insignificant problem for many families. In those 14 weeks, they have to try to juggle grandparents, neighbours and other people who willingly give up time to help them manage their working lives and the need to provide childcare—or they have to pay for additional childcare, often, as we discussed earlier in Committee, at a very much increased hourly rate, sometimes as much as twice the rate that is paid by the Government for the so-called free hours. That is a huge challenge for many families. Flexibility during holiday times and enabling families to get out to work in times other than the traditional nine to five, which is the basic provision in the Bill, would be greatly welcomed by many families, particularly those on low pay, on whom I hope this Bill is particularly focused. I beg to move.

[Lord Touhig (Lab)]

My Lords, I shall speak to Amendments 23 and 24. They would place in the Bill the current permitted staff to child ratios for childminders and nurseries. One of the central themes running through the Second Reading debate was concern about the capacity of the early years sector to provide the extra free hours. For example, the right reverend Prelate the Bishop of Durham spoke of the strains on providers not in purpose-built facilities who cannot extend their opening hours. My noble friend Lord Sawyer and the noble Earl, Lord Listowel, talked of low pay and staff shortages. Many noble Lords spoke of the underfunding crisis in the sector and the limitations of cross-subsidy options. As we know, this point will be part of the Government’s review of the finances of the extension.

The Minister and this side have a difference of view about the health of the sector and its capacity to expand and take on new duties. I sincerely hope that we are proved wrong, but in the mean time, there is concern that the Government will look again at increasing the staff to child ratio as a quick fix to deal with the capacity issues. We believe that these amendments are necessary because of this Government’s public statements and attempts in the past to increase the ratios.

This would be all too easy in the future as the current ratios are in regulations which can be changed by the Secretary of State. We are therefore keen to provide the necessary reassurance and guarantees to parents and professionals alike that the current ratios are safeguarded. Noble Lords will recall that there was a massive outcry across the sector when it was proposed to change the ratios. It was felt that this move would compromise quality and put children’s lives at risk and, as a result, the Government had second thoughts and backed down.

However, there is real concern that with the drive to increase the supply of early years places the Government might revisit the original plan. We believe that the current ratios have stood the test of time in balancing the quality of provision with the cost to providers and therefore parents. Professor Nutbrown, who has advised the Government on early years provision, has made it clear that she would oppose any change in the ratio. She quite rightly makes it clear that good-quality provision is directly related to the qualifications and training of the staff involved, as well as their capacity to relate to the children on an individual basis. This is crucial to the well-being and development of young children.

Our proposals would ensure that a single childminder can care for up to six children under the age of eight, including a maximum of one baby under 12 months and another two children under five. By anyone’s imagination it would be quite a workload and a challenge to provide appropriate care across the age group. I looked after one of my granddaughters, aged 22 months, for part of the weekend and can certainly testify that it was challenging indeed.

There must be one member of staff at a nursery for every four children aged two and three and one for every eight children over the age of three. We would also set out the minimum qualifications for these staff members in regulations. Again, the ratios as they stand sound fairly challenging. But they are necessary not just to support the crucial period of early years development but to provide safeguarding and protection for vulnerable children. Nursery staff already work under considerable pressure and we should not be tempted to add to it. So we believe that it is necessary to protect the current ratios and putting them in the Bill would guarantee that if any changes are proposed in the future they would have to come to Parliament and be subject to extensive parliamentary scrutiny and debate. We believe that that would be the right way forward.

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[Baroness Pinnock]

I beg to withdraw the amendment standing in my name.

Amendment 21 withdrawn.

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[Lord True]

My Lords, I can be relatively brief, since some of this follows earlier discussions. I have yet to be persuaded that the ranks of providers and settings that we are told are required will spring into being. I was interested in what my noble friend said in response to the previous amendment: new settings will emerge that will enable flexibility. When I think of the struggles that I have as a local authority leader to find settings for primary schools, let alone nursery schools, I do not think it will necessarily be quite as easy as that. Furthermore, I urge that, when we read through this debate, the point that I made about flexibility as it applies to part-time workers and the people providing the service is understood. We ask a lot of our nursery teachers at the moment and many of them have busy family lives.

My main point with regard to this amendment is that, at the moment, the voluntary, private, independent sector is relatively small. However, the Bill envisages an economy in which we move to an expectation that any setting that is participating in this scheme will actually provide 30 hours of care for 38 weeks a year. As I tried to illustrate on an earlier amendment, there are a very large number of settings in rented premises such as church halls and parish halls, or providers whose teachers want to follow the school term because they themselves have children at school; it suits many such employees to have school holidays. For various reasons, many providers will simply not be able to provide the 30 hours for 38 weeks on any method. Some will not be willing to do so because they place greater emphasis on educational purpose than on occupying the crease. There is a dashing element to education and there is a Geoff Boycott mode of being there for 1,140 hours to fulfil the commitment. I do not expect a formal answer from my noble friend. All I am asking on this amendment is to consider those extremely valuable settings in villages and small places where the parish hall may be required for other purposes. Socially, they are extremely important and they should not be hyper-regulated to whatever extent the Treasury says we have to regulate this new sector to protect public money—so that for the 30 hours and 38 weeks we have to comply with 65 pages of new regulations to ensure that the state’s money is protected.

All I am asking is that it is understood, just as we understand with independent education, academies and free schools, that there may be some variety. There may be places where good-quality education is provided where it is not necessary to conform to every regulation that the state puts forward for this 30-hour, 38-week scheme. This is a plea to my noble friend as he reflects on this. This informal sector should not be snuffed out by being crowded out by state-supported provision and commercial ventures that are allowed to borrow against the certain stream of the 30-hour, 38-week commitment from the taxpayer. If it is to be nurtured, can we give those settings the same degree of latitude with regulations, while obviously making the same demands about inspection, that we give to the excellent educators in academies, free schools and the independent sector in maintained education, where we do not necessarily expect everything to be the same? That is the thought behind Amendment 28. It is not necessarily a perfect amendment, but just a thought that I place.

Amendment 38 is simply a rider to that. Ofsted does important work, and every setting needs a “good” or “outstanding” Ofsted finding to succeed. When Ofsted is assessing educational quality—not just Geoff Boycott occupying the crease—can we be sure that in no circumstances will it include in any report that the setting is not open for 1,140 hours and is therefore not conforming to the standards that are expected? It is very easy to slip into that sort of position.

I am not expecting an answer now because Report and later stages of the Bill will follow, but I fear that the independent informal sector may grow simply because it physically cannot conform to the requirements of 30 hours and 38 weeks. We should not resent that or compete with it. We should nurture it and that should be understood in the policy approach to regulation and inspection. I beg to move.

[Baroness Pinnock]

I want to comment on two aspects of what the noble Lord, Lord True, has proposed. He raised the issue of capacity, which we raised on the first day in Committee. We received assurances from the Minister that capacity would be much less of an issue than some of us feared. I trust that the Minister believes that to be the case. If so, perhaps the noble Lord, Lord True, is overstating the issues that he has raised today.

The second matter is more important and concerns the continuity of care provided if we go for this 30 hours a week. Almost inevitably, as we said on the first day in Committee, many children will take part in different settings, so 15 hours may be in a school nursery setting and the other 15 in a private nursery, with a childminder or a combination of all three—childminder, private sector day nursery and state nursery. We should think very carefully about that. I hope that the Minister will be able to come back with some thoughts about this. Very young children may be moving between those three different settings during the course of a day. How does that benefit them? How can we overcome some of those changes that the noble Lord, Lord True, has raised in the discussion around his amendment this afternoon?

[Lord Northbourne]

My Lords, I make a very brief intervention and I have to declare an interest. Is there not some scope for grandparents in this pattern? Will it be possible, for example, for some of those hours to be taken up formally by grandparents or other relations of the child?

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Moved by

[Baroness Pinnock]

34: Before Clause 3, insert the following new Clause—
“Duty to report: child poverty target
(1) The Secretary of State must, in each financial year, starting with the date 12 months after the commencement of this Act, report on the impact of the free entitlement to childcare on meeting child poverty targets.
(2) For the purposes of this section, “child poverty targets” means the targets set out in sections 3 to 6 of the Child Poverty Act 2010.”

[Baroness Pinnock]

My Lords, this is a timely amendment, given the Government’s Statement of last week. When we were considering the Bill’s impact, it seemed to us that it would be a progressive move to relate the benefits of the additional free hours of childcare to improvement or otherwise in measures of child poverty, hence the amendment tabled in my name.

When considering the impact of the Bill, we became concerned that the financial benefits claimed by the Government could be completely undermined by changes they are going to make elsewhere. We were right to be concerned, given their announcement last week that they aim to abolish the measures of child poverty that were instituted in the Child Poverty Act 2010. In particular, we are concerned that the combination of those changes and the changes to working families’ benefits will have an adverse impact on child poverty.

There was cross-party support for the Government’s attempt in the 2010 Act to set out targets to reduce child poverty. Therefore, I am disappointed—to put it mildly—that the Government are now intent on removing the income-related figures for child poverty and replacing them with measures of worklessness and educational attainment. If you are a child living in a family on low income or benefits, it matters little whether that is the consequence of your parents’ worklessness or educational attainment, and there is little you can do about it. It is really important that we get to grips with this and use the Childcare Bill to lift more children out of poverty. I am sure there is a commitment to doing that across this House; it is the way we do it that will be a matter of debate.

The Government will want to use the undoubted benefits of the Bill to achieve that by agreeing to amendments that would extend the definition of working parents to those seeking to improve their education and skills. That would marry very neatly with what the Government said in the other place last week about educational attainment being a measure of poverty. If that is to be one of their measures, using the Bill to help parents who are seeking to improve their skills by going into education or training would combine the wishes of the Government with the Childcare Bill. That is something we could perhaps all agree to.

When I raised this issue last week, the Minister said that there were other ways for young parents who were in education to access some form of childcare, and he is right. But, having asked people over the weekend how this works, I can assure him that it is not that easy for young parents going into college, university or training to access really good free childcare. Aligning the Bill with the requirements of people going into education and training would be an enormously progressive move towards helping low-income families and therefore tackling child poverty.

If there is something we can do to lift more children out of poverty—which would have long-term benefits not just for them but for the country as a whole—and if we can do it fairly simply by linking parents’ educational needs with the Bill, we should all try to do it. I would be very pleased indeed if the Minister rethought the answer he gave me last week, in the light of the Government’s announcement, and I urge him to do so. I beg to move.

[The Earl of Listowel (CB)]

I am grateful to the noble Baroness for moving this amendment. The Child Poverty Action Group has told us that it welcomes this legislation because of the positive impact that it is likely to have on child poverty. I hope that it may be helpful to remind the House of concerns about other current factors in play which might impact on child poverty.

I am grateful to the Minister for agreeing to a meeting on the issue of homeless families. I am reminded of a couple of times recently where, due to a combination of policy factors, many poor families have had to move out of London because they can no longer afford to live here. That is causing concern to employers, as their workforce is leaving London, and one must be concerned that those families are going to areas where they will have difficulty finding employment. While I know that this is an extremely difficult issue, it is helpful when we are talking about policies which will raise children out of poverty to keep in mind other things that might be pushing children into poverty and to think carefully about what we can do to hit that on the head as well.

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[Baroness Pinnock]

I beg leave to withdraw Amendment 34 in my name.

Amendment 34 withdrawn.

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Moved by

[Baroness Pinnock]

39: After Clause 3, insert the following new Clause—
“Impact of childcare entitlement on low income working parents
(1) Within 24 months of the commencement of section 1 of this Act, the Secretary of State must publish a report on the benefits of free childcare provided under section 1 for low income working parents.
(2) A report under subsection (1) must include an assessment of—
(a) the monetary value of the free childcare entitlement to low income working parents;(b) the educational value of the free childcare entitlement for children of low income working parents;(c) the number of low income working parents taking up provision of the free childcare entitlement.(3) An assessment under subsection (2)(a) must include an assessment of the extent to which any monetary benefit to low income working parents from the free childcare entitlement is offset by any changes to—
(a) working tax credits;(b) child tax credits;(c) universal credit;(d) child benefit,that have occurred since the coming into force of this Act.(4) An assessment under subsection (2)(c) must include an assessment of the impact on the number of working parents of any changes to working tax credits that have occurred since the coming into force of this Act.
(5) For the purpose of this section “free childcare entitlement” means any childcare provided free of charge under the duty set out in section 1 of this Act.”

[Baroness Pinnock]

My Lords, Amendment 39 is in my name and that of my noble friend Lord German and the noble Baroness, Lady Jones of Whitchurch. The amendment is an extension of our discussion on Amendment 34 on the links between this Bill and child poverty. As we know, the Government have a way of encouraging people out of poverty by encouraging them into work, and to make work pay. One of the ways of making work pay is by providing additional free childcare. Those who have relatives with young families will know the huge cost of paying for childcare in order to go out to work. We know that some working parents currently pass over most of their income to childcare costs, so this Bill is to be greatly welcomed.

However, I would like to explore through this amendment the link between the Bill and the incomes that families will have, and the changes to those incomes that we know are on the cards later this week in an announcement from the Chancellor of the Exchequer. The Government have claimed, no doubt accurately, that the provisions in the Bill will see an additional benefit to families of around £2,500 a year. That would be a huge and significant saving to parents. However, the simple fact is that for those on low incomes and who most need the benefits of free childcare, all that good work could be wiped out by government cuts to tax credits of various kinds and perhaps to housing benefit.

I know that the Minister will be unable to tell us exactly what cuts to tax credits we are set to see in the Budget this week. Indeed, the Government have been singularly unwilling to spell out where their £12 billion of welfare savings will come from, but I think all sides of the House can agree that these cuts are likely to come at the expense of lower-income working families. The Prime Minister has already trailed that we will see cuts in tax credits, with some people suggesting that there might be up to £5 billion of projected savings. If that is the case, it would result in families with two children losing up to £1,700 a year, seriously diminishing the very welcome impact of the free additional childcare.

Despite what the Prime Minister suggested about companies paying more to workers to offset the impact of any cuts to tax credits, without real action on the minimum and living wage that is frankly rather more hope than expectation. We cannot assume that employers will be either able or willing to pick up the slack by paying a living wage to make up for the loss, for instance, of working tax credits. The decision about tax credits will make a huge difference to people, whether in employment or not. Cuts will mean that it is no longer financially possible for someone with high childcare costs to go out to work. That means that they will lose not only their tax credits but potentially the entitlement of free childcare, a double whammy that will do what none of us wants and punish the children of those families.

However, as much of this detail is still to be discussed and we may not know the Government’s intentions until Wednesday, we propose in this amendment to have a review two years hence of the financial impact on lower-income working families of the combination of the free childcare offer and any reductions in working tax credits, child tax credits and housing benefit. I made the case earlier today about the important link between this Bill, child poverty and the impact on low-income families. If the Government want to be progressive—I am sure they do—they will see that link and try to make work pay by ensuring that childcare is of benefit to low-income families. Ultimately, that is the purpose of this amendment: to consider the link between the two. I beg to move.

[The Earl of Listowel]

My Lords, the noble Baroness referred to the national living wage. I believe that two former advisers to the Prime Minister recently endorsed a move towards the living wage. Clearly, this Bill would be that much more effective and there would be much more incentive for people to take what is offered in it if we moved to a national living wage. What current position do the Government take towards the gradual introduction of a national living wage?

[Lord Nash]

In Amendment 39, the noble Baroness, Lady Pinnock, seeks assurance that the Government will monitor and report on the impact of the entitlement. She spoke with passion about the importance of supporting low-income working families with the cost of childcare, which is the subject of today’s debate, and I will confine my remarks to the subject of today’s discussion. I agree that it is extremely important and must be kept in mind at all stages of policy development in the early years.

The Government have ably and amply demonstrated their commitment to supporting low-income working families with the cost of childcare and to improving the educational outcomes of all children, particularly those from disadvantaged backgrounds. As my noble friend and I have set out in this debate and in previous discussions, the Government have committed to increasing childcare support within universal credit by around £350 million to provide 85% of childcare costs from 2016 where the lone parent or both parents in a couple are in work. The Government have introduced an entitlement to free early education for the most disadvantaged two year-olds, while the early years pupil premium will provide more support to improve outcomes for disadvantaged three and four year-olds.

The Government have demonstrated their commitment to understanding the impact of the provision of free childcare through previous projects such as the Effective Pre-School, Primary and Secondary Education project and the new longitudinal study of early education and development, as my noble friend and I mentioned previously. The Government also collect a range of data on the take-up of the existing entitlements, including the number of children taking up a place. The most recent data were published on 25 June. They reflect the position in January of this year and are extremely encouraging. As detail of the new entitlement is developed further, we will consider what further data should be collected to enable effective monitoring of the new entitlement.

The Government recognise the benefits and importance of evaluating the impact of significant policies such as this but do not believe that it is necessary or appropriate to legislate for the production of a report or to define the timeline and content of such a report. I therefore urge the noble Baroness, Lady Pinnock, to withdraw her amendment.

[Baroness Pinnock]

Given that detailed answer, I beg leave to withdraw the amendment.

Amendment 39 withdrawn.