PARLIAMENTARY DEBATE
Early Education and Childcare - 4 September 2025 (Commons/Commons Chamber)
Debate Detail
Within months of taking office we published our plan for change, a promise to improve the lives of working people and break down barriers to opportunity for people in this country. That plan set a target that a record proportion of children will start school ready to learn. Why? Because the foundations of the stronger society that we want to build must be laid down from the very beginning of children’s lives. In July, we published our “Giving every child the best start in life” strategy, setting out how we will achieve that target, and the Government’s vision for the future of the early education and childcare sector.
We have heard the calls of families and providers. Education begins long before primary school, and this step change will give our children the focus and priorities that they deserve during their critical early years. We will help our youngest children by increasing the availability of childcare, improving the quality of early education and boosting support for families, building on the best of Sure Start by rolling out Best Start family hubs in every local authority in England. Taken together, those three approaches will make the difference to families and set up children for success in education and in life. It is yet another example of this Government working, with promises made, and promises kept.
We promised to make childcare more affordable for parents and more accessible across the country. Today we are delivering on that promise, with hundreds of thousands of parents now getting 30 hours of funded childcare each week, from when their child turns nine months until they start school. For too long, families have struggled to get childcare places that match their individual needs, and provision has been either unavailable or unaffordable. The least well-off parts of our country often have far fewer childcare places per person than the most affluent, but wide provision of high-quality childcare and early education makes a huge difference to many lives. It helps parents by giving them the flexibility to balance work and family life, and it helps businesses and the economy by helping parents return to work and growing the childcare sector and employment.
This marks a fundamental shift in how we support families right from the start: reducing costs, increasing choice, and helping parents to balance work with family. Those making full use of the offer will save, on average, around £7,500 a year. For Victoria in Gloucester, the 30 hours is helping her to balance being a single mother and an educator. She works five days a week, and the extended Government-funded childcare hours will save her around £600 a month. They also mean that she can continue her career. As Victoria says:
“This roll-out is a significant step forward in women’s rights and workplace participation.”
We are on track to reach over half a million children who will benefit from the scheme this term, already exceeding initial estimates for delivery, and the roll-out is a major step forward in our ambition to give every child the best start in life. We know that that ambition is shared by our brilliant and dedicated early years and childminder staff who work hard day in, day out to make it possible for families. Private, voluntary and independent nurseries, as well as childminders, have helped the Government to reach this important milestone, and they have grown their capacity in response to increased demand for childcare places. More providers are delivering the entitlements, with the number up by 5,800 private providers.
The sector plays a vital role in supporting families and nurturing young children, so we must ensure that its provision is available where it is most needed. That is why we are also delivering tens of thousands more childcare places via new and expanded school-based nurseries. Schools have reported that 110 nurseries from phase 1 of the programme opened this week at the start of term, and they are providing 2,500 places for families in parts of the country where provision is needed. Those nurseries join a diverse childcare market that offers families different choices to meet their needs. School-based nurseries can strengthen ties between parents and schools, and ease the transition into reception. For families with children of different ages, they offer easier drop-offs and pick-ups. School-based nurseries also play a key role in inclusion by caring for proportionally more young children with special educational needs and operating in disadvantaged areas. We have already funded around 300 new and expanded school-based nurseries, and thanks to the hard work of schools, they are on track to deliver up to 6,000 new nursery places.
We are laying the foundations of success for tens of thousands of young children, and today I am proud to tell the House that we are launching phase 2 of the school-based nurseries programme. Backed by £45 million, it will deliver 300 more new or expanded school-based nurseries. It will focus on disadvantaged areas where places are needed, and where they can make a big impact. We will build on the success of the first phase of the programme, and as before, schools can apply to establish new nurseries in partnership with private, voluntary and independent providers and childminders.
Last week I had the pleasure of visiting Cinnamon Brow Church of England primary school in Warrington. It had collaborated with an existing local private nursery to refurbish an unused mobile unit, creating a new nursery on the school site. I was so pleased and impressed by the partnership between everyone involved. It is a great example of how schools can work with established nurseries to expand childcare provision and break down barriers to opportunity.
The programme is already making a difference to families in 66 local authorities, and we are looking ahead to further grow provision for future generations. Phase 3 of the school-based nurseries programme will launch in early 2026, and will focus on meeting the long-term needs of local communities. Local authorities will be invited to develop multi-year funding proposals, in collaboration with schools and childcare providers. Backed by over £400 million, the programme will deliver on our manifesto commitment to parents of more places in school-based nurseries, and more affordable childcare for parents.
Families know that childcare needs do not stop when children start school. That is why we recently extended the holiday activities and food programme, investing over £600 million in young people’s futures. The programme provides nutritious meals and enriching activities for children from lower-income households, it helps to close the development gap between those children and their peers, and it eases the financial pressure on parents during the school holidays. The holiday activities and food programme has already reached half a million children in the past year, and during that time it has saved families over £300 each. It is another part of our mission to break down barriers to opportunity, so that every child can get the best start in life.
Our “best start in life” strategy sets out how we will support this country’s children to thrive as they grow up. Alongside the £9 billion that this Government will be investing in early years, we will spend nearly £1.5 billion over the next three years to strengthen the childcare sector and revitalise family services. By expanding funded childcare and growing provision where it is needed via school-based nurseries, more children will arrive in reception ready to learn and succeed in education. The measures I have set out today reflect this Government’s deep commitment to ensuring that every family can access high-quality childcare and early education, and that all children can reach a good level of development and start school ready to learn. That will help families to save money, earn more and give children the best possible start in life. I commend this statement to the House.
Education is the greatest enabler of success and opportunity in this country. All Members of the House regularly visit our local schools, colleges and universities, and we see at first hand the power of a good education. Britain has some exceptionally talented young people. I look forward to working constructively with the Minister to help drive up educational standards across the country, so that those young people can get the very best start in life. Of course, when we were in government, we were ranked fourth in the world for reading, and top in the western world for maths.
It is fantastic news that, from this week, parents will benefit from 30 hours of funded childcare a week for children aged from nine months to four years. I am proud that this Conservative plan—our policy—is having its final roll-out to provide childcare for working parents, which is what they need and deserve. This Conservative policy will save parents £7,500 a year per child. I also welcome the extension of the holiday activities and food programme, after its long-term future has remained unclear for many months.
It is fantastic to see how enthusiastic the Education Minister is about the plan. I remind the House that only two years ago when we announced our childcare policies—the policies that are having their final roll-out announced now—the Secretary of State for Education herself labelled our childcare plans “broken” and a “total mess”. Only one year ago, she refused to commit to rolling out our childcare plan altogether, so I am grateful for the change of heart and that she has put party politics aside to deliver the support that working parents need. Our children should always come first.
We welcome the expansion of childcare, but the announcements mean little when the industry itself is crumbling as a result of the actions taken by this Labour Government, most notably the damaging jobs tax. Earlier this week, 27 leading organisations representing children, parents and childcare providers wrote to the Education Secretary calling for urgent action following the hike in national insurance contributions. Without such action, the sector has warned that it will not be able to provide the final roll-out of childcare, with one in 10 childcare providers saying that they will face closure within the next two years without help, leaving the sector at risk of collapse.
The Early Education and Childcare Coalition stated that the hike in national insurance has created a “perfect storm”, leaving many providers in a position where offering childcare is simply unviable. Instead of listening to the experts and organisations tasked with looking after our children, the Department’s shameful response was to label the claims as lies and “utter nonsense”. How disrespectful to parents, children and the childcare sector. What is utter nonsense is the fact that the Minister expects childcare providers to absorb the national insurance increases without the financial support needed, while keeping fees the same. We need to be clear: it is not just the sector that will be punished because of the Minister’s lack of coherent planning; hard-working parents and their children across the country will suffer too.
Will the Minister outline what engagement he has had with the sector to ensure that providers are not forced to shut their doors or reduce the hours they provide? Will he finally admit how damaging the jobs tax has been to the childcare sector, and what the impact and costs will be? Will he update the House on the impact of the jobs tax on childcare provision, and how he will continue to monitor its impact?
On the detail of the Minister’s announcement, will he clarify how the Department is identifying the most disadvantaged areas, and how he plans to make the biggest impact? Will he put parents up and down the country at ease and confirm that the Chancellor will not fill her £50 billion black hole with the education budget? While we welcome the expansion of childcare, the reality is that Labour’s decisions are making childcare less accessible and more expensive.
The Education Secretary says she is standing up for hard-working parents, but they are the ones who will suffer as a result of this Labour Government—our children will suffer, too. It is time for her to stop making broken promises and to ensure that early years provision is her No. 1 priority.
The people of this country are well aware of what happens when Conservative Members make pledges ahead of elections, such as 40 new hospitals or levelling up, and of the reality that Liz Truss crashed pensions and mortgages. What did Conservative Members do? They cheered her on. Let me spell it out to them and tell them a truth that the British public were keen to ensure that the Conservatives heard at the election last year: when they will not even take the blame for the things that they did, they certainly will not get the credit for the things that they did not do. Over 14 years, they dismantled the support for families. More than 1,000 Sure Start centres, which boosted early learning, provided healthcare and built communities, were ripped away from communities across our country. It is no wonder that the Conservatives do not want to admit that what we are rebuilding, they destroyed.
This Government are delivering on our promise of change: thousands of new nursery places, expanded childcare hours, Best Start breakfast clubs in every primary school across our country and support throughout the school holidays. Labour is delivering on our promises to parents. We are saving families thousands of pounds, giving parents work choices and improving children’s life chances. That is what the country expects and that is what I am proud this Labour Government are delivering.
My Committee is today launching an inquiry on the early years. We will examine in detail the Government’s work in this area, looking at the sustainability of the workforce, families’ access to services across the country and the quality of outcomes for children. May I therefore ask the Minister what additional work he believes is needed to ensure that children in families who are not in work—who often have the most to gain from high-quality early years education—are not left behind by the expansion of funded hours for working families? How confident is he that the significant problems in recruitment and retention of early years practitioners will be addressed to secure the workforce needed to deliver on the Government’s commitments?
Finally, will the Minister join me in paying tribute to everyone in my constituency and across the country who has spent the past six weeks running holiday activities and food programmes? I know they are utterly exhausted this week, but they should know that their hard work has helped to tackle poverty and disadvantage, and to provide vital opportunities that keep children and young people safe and help them to thrive.
We all know that for far too long the previous Conservative Government neglected the early years sector, leaving a legacy of sky-high fees and childcare deserts in their wake, particularly in disadvantaged areas. We Liberal Democrats therefore welcome the Government’s announcement of more school-based nurseries, alongside the extension of funded childcare hours—but let us not forget the deep problems facing the private and voluntary sector. Without addressing the massive financial strain on those nurseries and childcare providers, we can never hope to deliver for families. Their survival is absolutely central to supporting families up and down the country to thrive.
The Government’s jobs tax, I am afraid, has only added fuel to the fire. The financial pressures of underfunded hours, the national insurance contributions rise, and inflation have left many providers on the brink. Indeed, some nurseries are already telling parents that they may be unable to sign the new contract due to financial pressures. Earlier this week, in a letter published by the Early Years Alliance, a survey of more than 800 providers found that 44% could not meet demand this September, while one in six has already cut funded places. That is coupled with a crisis in recruitment and training of staff in the sector; if the providers and the staff are not there, how can the Minister expect his expansion to deliver for parents up and down the country?
Will the Minister commit to urgently reviewing the funding rates, so that they reflect the real cost of delivering high-quality early education? At the same time, will he work with his colleagues in the Department for Business and Trade to ensure that we extend and fully fund parental rights so that families up and down the country have a real choice between whether they want to stay at home for a longer period in the early months, or go out to work full time?
The hon. Lady makes a number of points about the challenges faced by the sector. The number of people working in the sector has increased by 18,000, and as I mentioned in my statement, there are now 5,800 new private providers delivering the entitlement. We will review funding distribution later in this academic year. I welcome the opportunity to continue to work with the hon. Lady on these issues, as we continue to increase access to high-quality education across our country. I look forward to meeting her in due course.
“Our biggest difficulty is managing the drop off in funding as the child gets older, while negotiating a 37% increase in ENICs, ongoing increases in minimum wages and a rate for three and four-year-olds that has never kept pace. Is it any wonder that practitioners are voting with their feet and leaving the sector to take their skills elsewhere? We’ve been advertising for a qualified practitioner now for three months with zero applications.”
Will the Minister explain what the Government are going to do to ensure that recruitment in the sector is maintained?
There is much to genuinely welcome from the expansion of the childcare revolution that the Minister has outlined today, which was started by the previous Government. However, coalface reports from providers like the Big Top Nursery, which has sites in Waddesdon and Berryfields in my constituency, say that Government funding only just covers or does not quite cover the full cost of them providing the exceptional care and education that they do. The double whammy of the national insurance jobs tax increase makes that all the more difficult, so may I urge the Minister, who has met me before to discuss this subject, to really look at the true cost of providing exceptional education to children in Mid Buckinghamshire, and make the case to the Treasury that the funding needs to be higher?
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