Childcare Reform Package

Munira Wilson Excerpts

Wednesday 28th June 2023 Commons Chamber

[Claire Coutinho]

I will of course look at everything we can do to support all settings. As part of the work we did to assess costs, we looked at other costs, including things such as business rates, to assess the level of funding we should give for the hourly rates, but of course I will always look at anything I can do to support nurseries.

[Munira Wilson (Twickenham) (LD)]

Looking at the existing childcare entitlements for two, three and four year olds, the Early Years Alliance and the Women’s Budget Group estimate that the current offer falls short by about £1.8 billion—and that is even before we expand the offer, as was announced in the spring Budget. The Government are providing only an extra £204 million this year and £288 million next year, before we expand the hours. That clearly falls well short. There is no point expanding the hours if the providers are not there, so could the Minister explain what she is doing to ensure that early years providers actually remain financially viable?

[Claire Coutinho]

As I said, it has been a challenging time for providers, but the work we have done to come up with the hourly rate has been based on a lot of evidence. I do not recognise that figures that the hon. Lady talks about. As I said, we surveyed 10,000 providers and 6,000 parents, and looked at providers’ finance reports, to look deeply at the costs and come up with the hourly rate. I continue to talk to all providers as we continue the expansion.