Early Years Support for Families

In the past five years, we have spent more than £20 billion supporting families with the cost of childcare. Since 2010, we have introduced the offer for disadvantaged two-year-olds and doubled the entitlements for working parents of three to four-year-olds, and we are now going further and have announced 30 hours of free childcare for children of working parents from nine months.

I recently visited the outstanding Laurels Childcare Company in Durham to listen to its concerns about childcare funding. Such providers are crying out for clarity on the Government’s plan. More free hours must not mean more underfunded hours. The Government admitted in 2020 that it costs £7.49 to deliver an hour of free childcare for a three-year-old, yet in September providers will be paid just £5.50 for those hours. Can the Minister tell me why?

We conducted a survey of 10,000 different providers, and that is what we have used to set out the funding rates. In some of those areas, for example, for two-year-olds, the rate is going up by 30% because we know that is a much higher cost for providers, but overall we have announced the single biggest investment ever in childcare and will be spending £8 billion on this in four years’ time.

I call the Chair of the Education Committee.

The commitment in the Budget to invest in childcare in the early years was extremely welcome and I congratulate my hon. Friend on her part in securing it. Can she update the House on the feedback she is getting from the sector on the proposed funding rates and whether they will allow it to meet the inflationary pressures it is facing, including soaring business rates bills? Will she continue to address with the Treasury some of the unavoidable costs, such as the increase in the national living wage and the business rates increases, faced by the sector?

As I said, we used feedback from the sector—we surveyed about 10,000 different providers—to come up with the rates, and as we progress we continue to talk and work closely with it. There has been a lot of positivity about the rates we set out, in particular for one and two-year-olds, and the £200 million we are putting in this year and the £288 million we will be putting in next year.

One thing I am most concerned about in terms of educational attainment in early years and primary is food insecurity, which is rising in all our constituencies. Much of this is devolved, of course, but I do not want to see hungry kids anywhere and hungry kids cannot learn. The Institute for Fiscal Studies found that seven out of 10 children in families on universal credit are not entitled to free school meals. Do Ministers not agree that they should be?

We have increased the number of children on free school meals to the highest ever level. We also have programmes such as the holiday activities and food programme—one of the things I visited over the recess—which is providing nutritious meals alongside activities. We are doing a lot to support parents with the cost of living, too.

Will my hon. Friend pay tribute to the work done by the private sector, and in particular to Busy Bees, which was founded in Lichfield 40 years ago this year and operates over 400 nurseries in the United Kingdom, the Republic of Ireland, Europe and the United States of America, and wish it well for the next 40 years?

My hon. Friend is testament to the fact that good things come out of Lichfield. I have met Busy Bees a couple of times. It does some really impressive things, in particular on retention of staff and training programmes. I wish it well in the years to come.