Cost of Child Care

Nic Dakin Excerpts

Wednesday 20th November 2013 Westminster Hall

[Nic Dakin (Scunthorpe) (Lab)]

May I apologise, Mr Hood, for not being here at the beginning of the debate as I was in a delegated legislation Committee? I am sure, however, that my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) gave an excellent speech and I congratulate her on securing the debate. Such debates are little like buses: we do not have a debate on child care and then two come along at once. The quality of debate both yesterday and today reflects the quality of debate in the country. The issue is important and central to families up and down the land, both in the constituencies represented in the debates and in those not represented.

I want to begin with a statistic to which my right hon. Friend the Member for Wolverhampton South East (Mr McFadden) has already alluded. It is the thing that has affected me the most over the past month. Ofsted has stated that five-year-olds from the least affluent backgrounds are 19 months behind five-year-olds from the most affluent backgrounds in development terms. That is a shocking statistic, and it alone should be a call to arms for all of us to roll up our sleeves and to put child care centre stage. The costs of child care should not be a barrier to addressing that inequality.

If I had a penny for every time I have heard Members of Parliament on both sides of the House refer to the need to close the inequality gap, I would be a very rich person. There is a theoretical commitment to doing something, but we need to turn that belief in principle into a belief in practice. Only through practical effects can we change the situation for those five-year-olds who become tomorrow’s adults and leaders. The hon. Member for Norwich North (Chloe Smith), for whom I have a lot of respect, appeared to say that we perhaps cannot afford to do the right thing, but the Ofsted statistic tells us that we cannot afford not to do the right thing. We need to find the finance, whatever the situation, to address the issue. It is absolutely crucial.

I have visited many nursery settings in my Scunthorpe constituency over the past month, and I was struck by the vast variety and diversity of those settings. As the Minister mentioned, many of them are nurseries attached to schools, which provide a very important part of that landscape. I visited Messingham farm nursery, which is a new business in my constituency that meets the needs of a particular community and does a fantastic job. As the name suggests, it is about not only child care, but also using animal care to provide a particular experience for young people. I also visited the Ark family centre, which is run in partnership with the Baptist Church and delivers very good nursery care. Finally, last week, I took advantage of what was laughingly called a “mini-recess” to go to the Ashby Sure Start children’s centre, which is a fantastic facility that was created as a result of the previous Government’s Sure Start initiative. It is transforming the lives of the children in an area of my constituency where such a service is most needed.

I am always impressed by the quality, professionalism and commitment of the people working with children in such settings and by the way in which they divide up their time based on specific skill sets to address the needs of children at different stages of development. At the Ashby children’s centre last week, I was shown the files in which each child’s progress is carefully measured. Interestingly, I was told that schools are now more interested in receiving that information and building on it. The transition to the next stage of education should therefore be more secure, which was perhaps not the case a few years ago. We can see how the investment in nursery education is making a real difference.

I want to refer to the recent concerns of the Children’s Society about tax-free child care replacing the employer-supported child care vouchers. The Minister will hopefully take this opportunity to address the society’s concerns, because it is clearly focused on children’s well-being. Parents on universal credit will not be eligible to receive tax-free child care. Instead, they will receive a component of universal credit up to 85% of child care costs. Working parents on the lowest incomes will receive help with up to 70% of costs. It seems odd to me and to the Children’s Society that working parents on the lowest incomes will get the lowest level of support. If its concern is accurate, I hope the Minister will address that point.

The Children’s Society is also concerned that the complexity of having two systems of child care support for working parents and issues around the threshold may cause the same sort of difficulties that many of us experienced in relation to the Child Support Agency. If the Government provide help with only 70% of child care costs to those on the lowest incomes, can they still guarantee that every hour of work will pay for those on universal credit if there is an increase in the tax threshold? There may be an unforeseen consequence that we would all want to avoid. Children’s charities, including the Children’s Society, have asked for 85% support for those on universal credit, and I hope that the Government will examine that and ensure that that is the case for all parents on universal credit.

I will end with some points of concern. The cost of nursery places has risen by 30% since the last general election, which is five times faster than pay. At the same time, the same families are seeing their budgets squeezed by the rise in energy prices and transport costs and by general inflation. The average bill for a part-time nursery place of 25 hours a week has gone up to £107, and parents working part-time on average wages would have to work from Monday to Thursday before they paid off their weekly child care costs.

There are 576 fewer Sure Start centres, with three being lost on average every week. The Minister and I might disagree about the numbers, but I think we agree that Sure Start centres have been closed and have had their functions changed, which is clearly evidenced by what people across the country tell us. There are 35,000 fewer child care places than at the time of the last election.

The Government’s initiative of offering places to disadvantaged two-year-olds is positive. It did have teething problems when it was initially rolled out due to a qualification around Ofsted reports, which are often five or six years old. Fortunately, in my area that problem has been overcome. However, I am sure the shadow Minister and the Minister will wish to address those issues of practicality to ensure that together we take the opportunity to do something about the 19-month difference, before it is too late.