Childcare: Accessibility, Affordability and Quality

4. What steps she plans to take to improve the (a) accessibility, (b) affordability and (c) quality of childcare.

I know how important childcare is to the Chair of the Education Committee, and I look forward to his Committee’s report on that issue. Getting this right is fundamentally important for parents and children, and my hon. Friend the Minister for Children, Families and Wellbeing is considering all options to improve the cost, flexibility and availability of childcare and, crucially, outcomes for children. It may interest Opposition Members to know that since 2010 we have doubled Labour’s offer of free childcare for three to four-year-olds, from 15 to 30 hours. We have also introduced 15 hours a week of free childcare for disadvantaged two-year-olds, and parents on universal credit can claim back up to 85% of their childcare costs.

I am grateful to the Secretary of State for that answer, and she is right to set out what has been achieved. She will recognise that access to affordable and high-quality childcare is high on the agenda of parents and Members across the House, and as she said, the Education Committee is looking into that issue. There has been much speculation in the media as to whether this issue remains a priority for the Government. Will she reassure me and the Committee that she plans further reform and investment in this space?

I reassure my hon. Friend and the whole House that childcare is important to this Government —indeed, I met the Chief Secretary to the Treasury about this issue only last week. Helping working families to take up childcare and remain in work is a Government priority, and we have taken steps to ensure that that happens. We want to ensure that people benefit from a lot of the schemes we have in place, as some of them are underutilised. We have a £1.2 million Childcare Choices campaign to increase the use of such schemes, but we will go further. We are considering all options to improve the affordability and availability of childcare and, crucially, outcomes for children.

Sadly, childcare is not the only thing that parents are struggling to afford, and I am grateful to Karen Taylor from Rooted in Hull for drawing to my attention work done by the Child Poverty Action Group on poverty proofing schools. That provides a toolkit for schools to look at their academic year, identify times when they are asking parents to pay money, and try to find ways to alleviate that and reduce the costs to parents. Will the Secretary of State join me in encouraging many schools up and down the country, academy chains and headteachers, to look at that toolkit and do what they can to reduce the costs associated with sending children to school?

Of course we are always focused on what more we can do. We obviously have pupil premium funding, school uniform guidance and the highest number of children benefiting from free school meals, and in deprived areas we have introduced breakfast clubs. We all know that economically, times are tough, which is why we are very much focused on trying to get inflation down and on the Prime Minister’s pledge to halve inflation this year.

I call the shadow Minister.

Childcare is essential social infrastructure that underpins our economy by supporting parents to work. Yet in 2022, more than 5,000 childcare providers closed, and more than half of all local authority areas saw a net loss of childcare places. The Government have admitted that they pay providers less than it costs them to deliver so-called free childcare places, and with energy bills and wages going up from April, many more providers are at risk of closure. A crisis in our early years sector is happening right now. What are the Government going to do to stop further childcare providers closing?

I thank the hon. Lady for her question. Actually, Ofsted data shows that the number of childcare places has remained broadly stable at 1.3 million since August 2015. At the spending review in 2021 we announced additional funding of £160 million in 2022-23, £180 million in 2023-24 and £170 million in 2024-25 compared with the 2021-22 financial year. That will allow local authorities to increase the hourly rates paid to childcare providers.