Women and the Cost of Living Debate

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Department: HM Treasury

Women and the Cost of Living

Kate Green Excerpts
Tuesday 19th November 2013

(10 years, 5 months ago)

Commons Chamber
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Baroness Morgan of Cotes Portrait Nicky Morgan
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My hon. Friend is, of course, right about that. The best way to address living standards is by dealing with the economic crisis, so that families can find work in a growing economy. He is absolutely right to say that it is not fair to burden future generations with debt, which is why this Government have taken the tough actions they have.

I shall now discuss child care. For any mothers and fathers to succeed in the workplace, we need to have the right policy in place to support them. The Labour party is right to draw attention to the importance of parental leave and child care, but let me remind the Opposition that we were the Government who recognised the current system of leave and pay for parents as being not only old-fashioned and inflexible, but as playing a role in reinforcing the idea that women are the primary carers of children. Our new system will give real choice to families, and, from 2015, will allow working parents to share leave once the mother feels ready to end her maternity leave.

I remind the Opposition that we were the party that made sweeping changes on flexible leave and that they were the party that presided over child-care costs rising to the second highest level in the developed world. We are working hard to address that and to make child care more affordable for parents across the United Kingdom. A recent survey showed that 2012-13 was the second successive year in which the price of full day care and nurseries stayed flat in real terms

Kate Green Portrait Kate Green (Stretford and Urmston) (Lab)
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The Minister is right to draw attention to concerns about the cost of child care. Will she look carefully at what a group of organisations have recommended, which is that instead of giving a tax break to better off parents to pay for their child care, the proportion of child care costs that is covered by tax credits should be raised from 70% to 80%? That would have a significantly more beneficial effect for low-earning mothers.

Baroness Morgan of Cotes Portrait Nicky Morgan
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I am always happy to receive submissions on this issue from Members from across the House. We have already committed an extra £200 million for people on universal credit so that coverage of their care costs will go up from 70% to 85%.

Let me remind the House that we are increasing free early education places for three and four-year-olds to 15 hours a week. We are enabling low-income families to recover their child care costs and providing all families with support for 20% of their child care costs from autumn 2015.