Maintained Nursery Schools Funding

Debate between Helen Jones and Caroline Dinenage

Wednesday 1st February 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Women and Equalities (Caroline Dinenage)]

It is an enormous pleasure to serve under your chairmanship, Ms Dorries. I, too, congratulate the hon. Member for Warrington North (Helen Jones) on securing this important debate, and indeed all the hon. Members from different parties who have taken part; they have spoken with great passion about their own experience of maintained nursery schools. It has been great to hear the support from across the House for these valuable educational providers.

The issue of maintained nursery schools is of huge importance. I am pleased to have the opportunity to set out very clearly the Government’s position on the valuable contribution that they can make, not only to the lives of disadvantaged children, but to the wider early years sector. I want to make it very clear that the Government are committed to exploring all options to address the issues that nursery schools face, and we remain committed to ensuring that nursery schools have a bright future and can continue to meet the needs of the communities they serve.

Nursery schools do indeed have an impressive history. Central to the development of the very early nurseries was the recognition that disadvantaged children could thrive and overcome their circumstances by attending nursery settings that blended both care and education. Today that approach is backed up by robust research. We know that the first few years of a child’s life are critical to shaping their future development. We also know that high-quality pre-school education reduces the effects of multiple disadvantage on later attainment and progress in primary school. In addition, we know that many maintained nursery schools go beyond the bounds of their immediate communities, using their pedagogical expertise to help other providers improve the quality of their provision.

In short, although maintained nursery schools are attended by only 2.8% of the two, three and four-year-old children who benefit from funded early education places, they nevertheless make a huge contribution to disadvantaged children and to the early years sector as a whole. Like other Members, I have seen that in my own constituency.

[Helen Jones]

If, as the Minister says, she understands and values the contributions that maintained nursery schools make, why did the Government create this problem by going for a flat funding formula? She says she is trying to put it right, but the problem is entirely of the Government’s own making, is it not?

[Caroline Dinenage]

I think that the hon. Lady is being a little narrow-minded. I was a mother under the previous Labour Government and both my children were in childcare. That Government presided over some of the most expensive childcare in Europe. I was literally working to pay for my childcare under her stewardship. We can all talk about past mistakes.

[Helen Jones]

rose—

[Caroline Dinenage]

If the hon. Lady sits down, I will make a little progress. [Interruption.]

Free Childcare

Debate between Helen Jones and Caroline Dinenage

Monday 21st November 2016 Westminster Hall

[Caroline Dinenage]

Absolutely. The hon. Lady makes an excellent point. We have heard a lot today about maintained nursery schools, which do a fantastic job with children with special educational needs or disabilities. They need to be supported to carry on doing that work.

[Helen Jones]

Many maintained nurseries have special units for children with special needs. They take in disabled children. Does the Minister accept that that is another reason why maintained nurseries need to be fully supported in the extra responsibilities that they take on?

[Caroline Dinenage]

Absolutely. I am a great fan of maintained nursery schools. There is one in my own constituency, which has significant pockets of deprivation, that provides outstanding support for children. That is why the Government have committed, as part of the funding formula, to an extra £55 million a year for at least the next two years to support maintained nursery schools over and above the normal funding formula. Maintained nursery schools make up only 3% of childcare places. However, 98% of them are good or outstanding and 80% work in areas of disadvantage, which is why we want to consult them further about how we can support them in their very important work.

We know that good quality education at two can have a fantastic effect on a child’s development. We want children in care, children who have left care, adopted children and children with special educational needs and disabilities to benefit from that, as we have a duty to help them thrive and reach their potential. It is unacceptable that a child should have inferior life chances because of their background; this programme is key to tackling the problem. I am sure all hon. Members would agree that it is vital we help such children.

--- Later in debate ---

[Caroline Dinenage]

It is not a consultancy. It provides courses and shares best practice. It is about being out there, on the ground, speaking one-to-one to administrators and deliverers. The hon. Lady really needs to look up the meaning of the word “consultancy”. It offers practical help on the ground to providers, and helps them to get the very best out of their business models.

The lessons learned from the combined delivery approach of the early implementers and innovators offer a unique opportunity to provide vital information to the local authorities getting ready to meet parental demand when national roll-out takes place. We are capturing learning throughout the year and sharing it with all local authorities to ensure that early implementation is a success—that is what the £3 million contract is about—and that full roll-out has the benefit of the learning that success generates. The more planning and testing we can do in the widest possible number of areas, the more likely we are to have a smooth launch of this key Government priority.

At the same time, the Government will introduce tax-free childcare from early 2017, which is intended to help parents with the cost of living by subsidising the cost of childcare. The tax-free childcare will be paid per child, rather than per parent, and childcare costs will be subsidised for children up to the age of 12, or 17 if they are disabled. The Government calculate that, once it is fully implemented, about 2 million working families across the UK will have access to the new scheme. It will give parents a 20% subsidy on their childcare costs, up to a maximum contribution of £2,000 per child per year, or £4,000 for disabled children. The scheme will effectively subsidise 20% of childcare costs—up to £10,000 per child.

In addition, the Government’s flagship welfare reform programme, universal credit, also offers help with the cost of childcare for parents on lower incomes, even if they work only a few hours a week. Working parents on universal credit can now claim up to 85% of their childcare costs. Together with the 30 hours and tax-free childcare, that amounts to an unprecedented level of support to working parents for their childcare costs.

The hon. Member for Warrington North talks as though the high cost of childcare—we all know it is high, and I have outlined the many things the Government are doing to tackle it—is a recent phenomenon. Many hon. Members who spoke today have the advantage of having youth on their side and of having young children— I am jealous of them—but I was a parent during the previous Labour Government, which the Opposition spokesman spoke about in such glowing terms. I put my children through early years childcare under a Government who presided over the most expensive childcare in Europe. I was working to pay for my childcare. The Government introduced the 15-hours offer, but not everybody offered it, and I had great difficulty accessing it. Childcare is one of the biggest obstacles to women getting back into work, which is why it is important that we have all the schemes I have talked about.

[Helen Jones]

I am sorry, but I cannot let the Minister get away with that. She is right that childcare has always been expensive, but the Labour Government expanded the number of childcare places in this country hugely and set up Sure Start and children’s centres for the first time. She cannot get away from the simple fact that the cost of childcare went up 30% under the coalition Government—five times the rate of wage growth. That is what has put so many families in such a difficult position.

[Caroline Dinenage]

As the hon. Member for Wirral South said, this is not a recent phenomenon; it has accumulated over a number of years. I can speak only from my personal experience—I know that the children of the hon. Member for Warrington North are a bit older. My children were accessing early years childcare during the years of the Labour Government, and I saw those prices go up exponentially. That is why we are dealing with this issue. In addition to various other policies that help many of the issues that have been described today, such as giving people access to flexible working and shared parental leave, which was never introduced under the previous Labour Government, more than £6 billion will be spent on childcare by 2019-20 in cash terms—[Interruption.] I know the hon. Lady is not listening, but that is more than any other Government have ever spent on this issue. It includes an extra £1 billion on the free early years entitlement.

[Caroline Dinenage]

I do not know, but I am keen to learn from best practice wherever I find it, so I will be hot-footing it back to my office directly after this debate to see what we can learn from what is happening in Scotland.

A large amount of the additional money that we are spending on childcare is going to increase the average funding rate. The Opposition spokesperson said it is going down, but it is actually going to go up for private and voluntary providers in 88% of local authorities, including that of the hon. Member for Warrington North, where the hourly rate will go up by 19%.

[Helen Jones]

The Minister is missing out the fact that going up from a low hourly rate to a slightly better one does not solve the problem. The Government’s problem when they introduce the 30-hour provision will be that, unless they fund those hours properly, they will simply raise costs elsewhere in the system, so parents will be unlikely to benefit. Once the cross-subsidisation is taken out, costs will go out somewhere else, whether for under-threes, out-of-hours childcare, or whatever. The low rate of funding throughout the system is what needs to be addressed—it leads to some providers struggling to maintain their provision and to endemic low wages in the sector, which work against recruiting skilled workers, and it does not provide the best quality of care.

[Caroline Dinenage]

I do not understand why the hon. Lady is saying that what we are doing is already leading to that, because we have not yet done it. The early years funding formula response has not even been published—it will be out soon. She is sniffing at a 19% rise in her area, according to the figures we saw in the summer, which seems a little unkind.

I was also a little disappointed with how the hon. Lady described early years professionals. She talked about them as unskilled teenagers, slightly undermining the quality—

[Helen Jones]

On a point of correction, I am sorry, but the Minister misquotes me. I said that children needed the best skilled and professional care but that some of them are being looked after by unqualified teenagers, who are not the professionals in this. The professionals are those who have the proper qualifications and experience. She really must not misquote me on that, because I was clear that the best outcomes for children are when they are looked after by skilled, experienced people.

[Caroline Dinenage]

I am grateful for the clarification, but the hon. Lady should be aware—I hope she already is and is just playing with me—that the quality of the workforce is already good and has been improving: 87% of staff in full-day care settings are now qualified to level 3, the proportion of such staff with at least that level having grown from 75% to 87% between 2008 and 2013, while the proportion of those with a degree or higher increased from 5% to 13%. We are not, however, resting on our laurels. We have a workforce strategy that will seek to support even further those excellent people who work in our childcare environment.