Early Years Providers: Government Support

Cameron Thomas Excerpts

Wednesday 9th July 2025 Westminster Hall

[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.

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[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.

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[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?