Early Years Providers: Government Support

Sarah Dyke Excerpts

Wednesday 9th July 2025 Westminster Hall

[Michelle Welsh (Sherwood Forest) (Lab)]

I beg to move,

That this House has considered Government support for early years providers.

It is a pleasure to serve under your chairmanship, Mr Pritchard. I requested today’s debate on Government support for early years providers because too often the early years are left out of the discussion on education, and the impacts that they have on children’s lives and futures are not always given the respect that they deserve. I agreed with my right hon. Friend the Secretary of State during Monday’s statement when she called early years providers

“the hidden heroes of our communities.”—[Official Report, 7 July 2025; Vol. 770, c. 682.]

I am determined to see them hidden no longer.

Just over a year ago, I made the decision to stand to be a Member of Parliament because I believe that where people start in life should not determine where they end and what opportunities they should have. I spent many years in Nottinghamshire and Derby setting up Sure Start centres under the previous Labour Government. Then I had to watch Sure Start centres being dismantled and the most disadvantaged children having their support ripped away from them. That is the very thing that drove me to stand to be a Member of Parliament.

The injustice should never have been allowed to happen, and it is time to deal with the legacy of 14 years of a Conservative Government. In the UK, 4.5 million children are living in poverty; there are more than 4,000 in my constituency of Sherwood Forest. Almost 2.2 million children are on free school meals—just over one in four children in England. Half of those children will not reach a good level of development by the age of five. According to the Sutton Trust, the attainment gap between children on free school meals and their peers has widened to 20%.

Before I was elected, I worked with vulnerable children and I saw day in and day out how influential a child’s start in life can be on their future. I also saw how incredible Sure Start centres were in changing the lives of families in disadvantaged communities. I cannot express how excited I am to learn that the Government will be modelling their family hubs in a similar way and that they will be rooted in disadvantaged communities.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Ellie from Wincanton in my constituency has autism spectrum disorder, attention deficit hyperactivity disorder and a specific learning disability. She was not diagnosed during her early education and did not have the support framework around her, so I am really pleased that the Government’s Best Start family hub expansion could help early identification, particularly of special educational needs and disabilities, but does the hon. Member agree that the strategy must be matched with sufficient funding, especially after the Tories trashed early years provision?

--- Later in debate ---

[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.

[Sarah Dyke]

I think my hon. Friend is coming to an important point that I want to make, too. I recently met Acorn childcare in Somerton, another brilliant women-led nursery in my constituency. Staff there have told me over and over again that they are really struggling with the unsustainable costs and the funding model that is being implemented, plus the free entitlement that they now have to deal with. The spiralling costs are becoming uncontrollable. Does my hon. Friend agree that we must review the rates paid to providers to ensure that they cover the actual costs of delivering good-quality childcare?

[Lisa Smart]

I completely agree that the funding model for early years and nurseries must be sustainable. We do not want to see the business model becoming no longer viable, so that these wonderful providers that give children the best start in life can no longer continue to exist.

There have been Government announcements on the provider agreement, and announcements about how any shortfall in funding can be met by only voluntary contributions. There have also been announcements about staffing ratios. My view—the hon. Member for Sherwood Forest laid out this point really well—is that such announcements do very little to support the quality of provision or staff retention.

For context, private providers across Stockport have told me that since 1999 they have experienced a 250% increase in wages, which is a good thing, but that is in comparison to a funding increase of only 83%. Those two things do not add up. Early years settings are having to deal with the increasingly complex situations that many children face at home, whether that is their special educational needs and disabilities or different situations. The hon. Member for Sherwood Forest was absolutely right to take about far too many children living in poverty, which clearly has a knock-on impact on all education and early years settings. It is important that we restate our request that the Government look at the two-child benefit cap when they make decisions about future planning.

I am approaching my 20th year as a primary school governor, and I am acutely aware of the shared challenges and issues facing children and educators across all settings. If we want to see our young people thrive, the Government must commit to a sustainable funding model for early years care. They must also recognise the true cost of providing high-quality childcare, and not add more pressures to young parents already struggling with the cost of living. I ask the Government to recognise the increasing financial burden on parents, and to understand that proper funding for early years education is really an investment in our children’s and our society’s future.