Maintained Nursery Schools

I beg to move,

That this House notes that state maintained nursery schools are at the forefront of tackling low social mobility with 63 per cent graded outstanding by Ofsted, and 35 per cent good; further notes that two thirds of maintained nursery schools are located in the 30 per cent most deprived areas in England; notes that maintained nursery schools are recognised as being centres of excellence for supporting children with SEND in the early years; notes that the whole early years sector benefits from the expertise of maintained nursery schools acting as catalysts to raise standards in their locality through supporting schools and early years settings to work together to improve their quality; notes that despite welcome transitional funding the future viability of maintained nursery schools is under threat with 12 closing since 2016; notes the loss of transitional funding is equivalent to a 31 per cent cut in funding; and calls on the Government to safeguard the future of these vital early years institutions by guaranteeing transitional funding after 2020 as soon as possible whilst a long term plan to ensure their future viability is found by the Comprehensive Spending Review.

I thank the Backbench Business Committee for granting this important debate, and thank right hon. and hon. Members who have supported it, especially those who serve on the all-party parliamentary group with me as officers—the hon. Member for Cheadle (Mary Robinson) and my hon. Friends the Members for Birmingham, Erdington (Jack Dromey) and for Birmingham, Yardley (Jess Phillips). I also thank the right hon. Member for Harlow (Robert Halfon), who could not be here today because he has a ministerial visit in his constituency. He is another primary sponsor of the debate.

I would also like to put on record my thanks to the Minister who will be responding to the debate and the shadow Minister, my hon. Friend the Member for Batley and Spen (Tracy Brabin), both of whom have engaged thoughtfully and in a committed way with the APPG on nursery schools. I know that both of them share my commitment to the viability and sustainability of schools.

I want to put the Government and the Treasury on notice that we now need the warm words and commitment of the Department for Education backed up with the commitment of some real cash, which we need urgently. Our maintained nursery schools are some of the most excellent institutions in our education system. They transform lives, especially for the most vulnerable. They are what I often describe as the jewel in the crown of social mobility. Ofsted has judged 63% of them as outstanding, and the remaining 35% as good. That is nearly three times the number of private and voluntary nurseries rated as such.

I congratulate my hon. Friend on collating the petitions from various parts of the country. In Coventry the headteacher at Hill Fields nursery, Mrs Brinson, is always concerned about the inadequacy of funding, but more importantly about the fact that there are no guarantees beyond 2020. Does my hon. Friend hope, like me, that the Minister will rectify that when he winds up?

I thank my hon. Friend for that intervention. He is right. This is the key issue. It is about by when we need this funding commitment. I hope that the Minister will get a strong signal from the House that he can take back to the Treasury and get the commitment that we need.

I congratulate my hon. Friend on having secured this important debate about the sustainability of maintained nursery schools. More than 1,500 very concerned Slough constituents have signed petitions on this very issue from Slough Centre, Cippenham, Chalvey, Baylis Court and Lea nurseries. Does my hon. Friend agree that if we are to ensure the brightest possible future for our young children, we need to invest properly in their education from an early years nursery stage?

My hon. Friend has made a very good point. We will be handing in a number of petitions in the House next week. We know that the single biggest indicator of how well children will do in their GCSEs is their developmental level at the age of five. That is why the critical early years are so important.

I congratulate my hon. Friend and the all-party parliamentary group on the excellent work that they have done so far. The figure of 64% is striking in this context: 64% of nursery schools are in the most deprived parts of the country, and 64% of nursery schools face a deficit unless the Government change course. Do those two identical percentages not indicate that nursery schools need a fairer funding settlement?

I fully agree with my hon. Friend. He has, in fact, summarised my entire speech in one sentence, so perhaps I will cut it down a bit.

Let me return to the value of our maintained nursery schools, and explain why they are the jewel in the crown. Their admissions policies prioritise children with the greatest need: they have a strong track record of boosting early development for all children, but especially the most vulnerable. As my hon. Friend has just said, they are located in some of the most deprived parts of the country. We are always seeking to ensure that the highest-quality education is provided in the areas of most need, and we have achieved that with our maintained nursery schools. They have a unique pool of expertise in supporting children with special educational needs and disabilities—about one in five children in maintained nursery schools has special educational needs—but they also apply their expertise to many other aspects of provision. They have a network of teaching school alliances, and work holistically with other services in their areas. They are family hubs in all but name.

Why, then, are we worried about the sustainability of these schools? As the Minister knows, we have had similar debates before. Because of the campaigning that we did a few years ago, the Government committed themselves to transitional funding of £60 million for three years to keep the schools going, but that money is about to run out. Decisions are being made now about future staffing and place provision, and, unfortunately, they are having to be made in the context of not knowing whether the funding will continue.

Will my hon. Friend give way?

I will take one more intervention.

There are three outstanding maintained nursery schools in my constituency, as my hon. Friend knows. She has visited one of them. Each of them is telling me that three-year budget planning, which is a requirement, is impossible when they do not know how much money will be provided. They cannot wait for the spending review, whose date might slip.

My hon. Friend is absolutely right. I have indeed visited one of the schools in his constituency, and it is an exemplar of what is so good about the sector.

It is a false economy to allow maintained nursery schools to close. A report published recently by Yorkshire and Lincolnshire local authorities about the “hidden benefits” of maintained nursery schools showed that if they were not there, it would cost other services more than £1.2 million a year, which is considerably more than the budget of those schools.

Why have we reached the point at which we have these funding problems? Unfortunately, a perfect storm is facing our maintained nursery schools. Because of the recently introduced changes in the early years funding formula, local authorities no longer have the additional discretion to subsidise high-quality nursery schools. The 30-hours funding formula has put extra pressure on the schools, because they do not get all the funding back for taking children for 30 hours. Because maintained nursery schools are schools, they have the overheads of schools, including the costs of headteachers, special educational needs co-ordinators and others, but that is often not recognised in their funding formula.

Another factor in the perfect storm is the dramatic cut in local authorities’ funding. If, as proposed, deprivation will no longer be taken into account in the local authority funding formula, the sector will be decimated. We are already seeing the impact of that perfect storm, and we are nearing the transitional funding cliff edge. New figures confirmed by the House of Commons Library, which I have published today, show that nursery schools will lose nearly a third of their funding in 2020 if supplementary funding is not continued. We are now seeing the dire situation in which many nursery schools find themselves. More than a fifth of them are in the red, and the figure has risen significantly over the last few years.

Will my hon. Friend give way?

I will take one more intervention.

My hon. Friend is making a powerful case. Does she agree that it is pretty shocking that nursery schools are having to decide now about admissions in September without knowing what their budget for the whole of the next academic year will be?

As always, my right hon. Friend is absolutely right. It is probably a consequence of Brexit—among other things—that the spending review has been pushed back and pushed back without people realising the impact that that is having on organisations that have been waiting for funding decisions, and especially on maintained nursery schools.

I have taken a number of interventions, so I will cut out some of what I had been going to say.

Will the hon. Lady give way?

Yes, I will take one more intervention, because I have cut my speech down.