Childcare Entitlements Debate

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Department: Department for Education

Childcare Entitlements

Stella Creasy Excerpts
Tuesday 23rd April 2024

(1 week, 6 days ago)

Commons Chamber
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David Johnston Portrait David Johnston
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I thank my hon. Friend for raising some important issues. He is right that certainty and increasing those rates have been some of the most important things that the sector has asked for. It was very warmly received that we were providing that certainty for 2025-26 and 2026-27, which we think will help the sector. According to various reports that have been carried out, it will help them to unlock private sector investment and capital to help them expand, because that was the biggest thing they felt might be holding that back. It is part of a doubling of the amount that we are spending on childcare, from £4 billion to £8 billion. I will continue to work with my hon. Friend in ensuring we address the sector’s needs.

Stella Creasy Portrait Stella Creasy (Walthamstow) (Lab/Co-op)
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I start by declaring an interest as a parent of a two-year-old child. What all of us parents are talking about is the cost of childcare, and the Minister did not address the cost. The survey clearly showed that over half of all nurseries and pre-schools say that the funding does not cover the cost of providing the service in the way that the Government are asking them to provide it. It does not take a rocket scientist to work out that somebody’s got to pick up the bill—a toddler could do it.

The estimate before the Government announced the new hours was that fees would rise by 8.5%. Every single parent of a child in a nursery in my local community who has come to me has said that their fees have gone up as a direct result of this policy, because that is how nurseries are trying to stay open and make ends meet. Will the Minister prove me wrong? Will the Minister commit to publishing the data on the fees that parents of all children under five in nurseries and pre-schools are paying in this country, prior to and post the changes in hours?

David Johnston Portrait David Johnston
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We have a survey of 6,000 parents and 9,000 providers to set our rates based on exactly what they are paying. The hon. Lady must have missed my saying that our rate for under-twos is over £4 more per hour than that paid by a parent privately. I know that she does not like these facts, because they are at odds with her narrative. She asked me to prove her wrong; this month, we have just done so.