Question to the Department for Education:

To ask the Secretary of State for Education, what recent assessment he has made of the (a) affordability of childcare and (b) impact of that matter on (i) household debt and (ii) rent arrears of families with children in Birmingham.

The early years of a child’s life are the most crucial, which is why the department has invested more than £3.5 billion in each of the last three years to deliver free childcare offers, including the 30 hours per week for working parents, which is supporting thousands of families. We have introduced tax-free childcare and, through Universal Credit, parents can claim back up to 85% of their childcare costs, which is significantly more generous than the previous benefits system. The department is also investing millions in family hubs, where families can access important support services.

The most recent data, published by Ipsos Mori, on parental views of affordability of childcare is from between 9-13 July 2021, and is available to view here: https://www.ipsos.com/en-uk/childcare-use-perceived-impact-child-development-and-information-working-home-families-0-4-year. The data concludes that, among those who used formal childcare before COVID-19 and who are currently using (paid) formal childcare, for just over half (51%) the affordability of their weekly childcare costs is unchanged compared to before COVID-19. For 30%, their weekly childcare costs are easier to meet, and for 19% their weekly childcare costs are more difficult to meet. Among those who used formal childcare before COVID-19 and who are currently using formal childcare, for 46% their weekly childcare costs are unchanged compared to before COVID-19. For 29%, the costs have risen, and for 12% they have fallen.

In the Spending Review, the department announced that we are investing additional funding for the early years entitlements worth £160 million in the 2022/23 financial year, £180 million in 2023/24 and £170 million in 2024/25, compared to the 2021/22 financial year. Furthermore, we are investing £180 million of recovery support in the early years sector. We will build a stronger, more expert workforce, enabling early years providers to deliver high quality teaching and help address the impact of the pandemic on the youngest children, particularly those in the most disadvantaged areas.

The department will continue to look for ways to improve the cost, choice and availability of childcare. Alongside this, we have recently announced the biggest increase in the National Living Wage since its introduction from April 2022 to support working families more widely.

The department does not hold information on the interaction between cost of childcare and rental arrears in the Birmingham area, or on the interaction with household debt.