PARLIAMENTARY DEBATE
School-based Nursery Capital Grants - 2 April 2025 (Commons/Commons Chamber)
Debate Detail
This Labour Government are bringing the change that families deserve. We made promises to the parents and children of this country and, not nine months in, we are acting to deliver on them. Free breakfast clubs are already being rolled out, the curriculum and assessment review is in full swing, and children’s social care is seeing the biggest overhaul in a generation. We have funding for 10,000 new places for pupils with special educational needs and disabilities, backing for up to 10,000 more apprentices to qualify, new improvement teams for our schools and a new allowance for our kinship carers—promises made, promises kept. Here, today, we go further.
This £37 million in funding for 300 primary schools to open and expand nurseries is a big step towards delivering 3,000 nurseries for schools, a big step towards delivering childcare for parents and a big step towards delivering the best start in life for all our children. I want that best start in life for every child, because I want opportunity for every child. I want every child in every village, town and city across our country to grow up knowing that success belongs to them. That is the kind of country I want to live in—the country that this Labour Government want to build, with opportunity not just for some, but for all our children.
To achieve that, we need to start early, before university or college, and even before school—in the earliest years of our children’s lives. Those years are fundamental to opportunity. That is where gaps in learning and development first appear, and the longer we wait, the wider they grow and the harder they are to close. That is why, when I am in schools, colleges and universities—even in those places—they agree that the biggest chance to make an impact on our children’s lives sits in those crucial early years. That is why this is my No. 1 priority.
If we get this right, and we set all children on the track to success, that is where they will stay. That is why, despite the huge fiscal challenges that we inherited from the Conservatives, we chose to invest more than £8 billion in the early years at the last Budget. It is why the early years are a central part of the Prime Minister’s plan for change, setting the target of a record share of children starting school ready to learn. That is why I am today announcing the 300 schools that will be delivering our first wave of new and expanded school-based nurseries. Many of these school-based nurseries will serve communities facing big challenges, where there is strong evidence of need. Overall, it means up to 6,000 more nursery places for young children where they will have the biggest impact, with most of them starting in September this year. That is vital, because that is when the final stage of the 30 hours a week childcare entitlement will kick in. When that is joined up with the offer for three and four-year-olds, working parents of children from nine months right up to the beginning of school will get 30 Government-funded hours of childcare a week.
The 300 schools are just the start. It is 300 on the road to 3,000 school-based nurseries. We will work with schools, voluntary and private providers, teachers and local partners to find and spread what works. By the end, it will mean that tens of thousands more parents have the power to choose the hours they want to work.
What a contrast with the Conservatives, because what we inherited was not just an offer that they had not bothered to fund, but a pledge without a plan, with places, promises and provision missing. Parents made decisions on the back of those promises. Again and again, I hear from parents how much they have been relying on the promises that the previous Government scattered about like confetti. Across our country, this Government are delivering change in months, when the last Government waited 13 years before signing a post-dated cheque.
The changes that we are making will give parents more control over their lives, time to choose their working hours and money back in their pockets. The last Coram report showed that the effects are starting to flow through. Childcare costs for under-threes in England have halved since the expansion, but ultimately childcare and early years education is about children. It is about launching a lifetime of learning and starting as we mean to go on, so as we roll out these school-based nurseries, we are also adding the biggest ever uplift to the early years pupil premium, closing the attainment gap and giving every child the support that they need to learn and grow, and we are supporting early years educators to build their expertise.
It is not just what is taught in those nurseries that counts, but where they are located: they are in primary schools, which is no accident. We are centring schools in their communities, starting early, working with the voluntary sector and private providers too, so that the move from nursery to school is a natural step, from one room to another, sometimes even in the same building, as is the case at St Anne’s church academy in Weston-super-Mare. Having a nursery on site means that stronger, longer lasting relationships with families can be built. Parents feel that they are part of the community, so they engage more when their child starts nursery and then moves into school. When their child starts reception, there are no big, scary changes, building the sense that school is where they are meant to be.
I saw that powerfully this week when I went to Peterborough to visit Fulbridge academy. Little Oak nursery sits at the heart of the school. While I was there, I spoke to Hannah, a working mum whose little boy, Nile, goes to the nursery. She told me all about the difference that Little Oak was making to her family, and about how her son is making friends and taking big strides in his learning, ready to join his two older siblings at school in September. The nursery plays a big part in making Fulbridge academy the centre of that community.
It is the same for free breakfast clubs, which is why we announced the 750 early adopters this year. Schools are the beating hearts of their communities, where children come together to eat, learn and grow. It is good for attendance and achievement, for behaviour and belonging, and for children and their life chances. That is the point: this is action for them, to give them the start that they deserve, because that is my No. 1 priority, built on a deep and fierce commitment to the children of this country in the first years of their lives, taking their first steps into the world.
In our youngest children’s faces and in the faces of all who work with them, we see something that for so long has been missing from our country: hope. We see the hope of a brighter and better future, the hope of a secure and prosperous world, the hope that tomorrow can be better than today and the hope that this is a Government that are on their side. That is the future that we shape together, not face alone. That is the hope that so many people in our country have—that our best days lie ahead of us. That is what the people of this country chose in the general election last July, when they chose hope over fear, and chose a brighter tomorrow, not a bitter yesterday.
And that is why I am so focused on getting on and delivering change, because it matters so much for lives now, not in some distant future. Early years are where futures are made, where life chances are won and where healthier societies are built. That is the prize on offer. Our youngest generation is the first generation for whom opportunity is open to all, right from the start, and I know that Members from across the House will agree that that is a prize worth fighting for. I commend this statement to the House.
In her statement, the Education Secretary said that she inherited a “pledge without a plan”—what a load of nonsense! It is our plan that is delivering the expansion of funded childcare this autumn, and our plan that she today confirmed has already halved costs for under-threes, according to independent research. That is our plan, Madam Deputy Speaker, but it is her plan that is shutting nurseries up and down the country, and that will put up costs for parents.
Just last week, I hosted a roundtable with some of the unsung heroes of the sector—nursery owners. Many were in tears, struggling with very real decisions about whether they can keep their doors open. One of the owners shared with me that she is stopping her own salary so that she can continue to pay her staff the amount they deserve. Another owner was having sleepless nights worrying about how she would provide proper care for the children now that she can no longer afford the staffing costs, thanks to this Government’s decisions.
It is clearly absurd for the Government to ask the sector to absorb the increases in national insurance while keeping fees the same. The consequences of that are entirely predictable: nurseries will have to either close or put up their prices. A recent survey by the Early Years Alliance said that, sadly, around 400 nurseries that it spoke to may have to close because of this Government’s jobs tax. That is what the Education Secretary’s No. 1 priority looks like. Parents will lose out too. According to the National Day Nurseries Association, increases to national insurance contributions will force nurseries to raise their fees by 10%. Those are the obvious consequences of this Government’s decisions.
Will the Education Secretary finally admit today how much the jobs tax is costing the childcare sector? Will she monitor the impact of closures that happen thanks to her jobs tax on childcare availability? On the specifics in her announcement today, will she confirm the locations of the school-based nurseries and how they were chosen? Were they chosen on the basis of surplus primary places or are they in areas where we need more childcare provision? If it is the latter, how were they identified?
Those nurseries will be based in schools, so is it her intention that they will mimic the school timetable, or will there be year-round provision and will their hours be longer than the school day? Will school-based nurseries be compensated for the impact of the jobs tax? If so, what will she do to address the inequity that that will cause with other providers?
As the Early Years Alliance has said today
“if the government is truly serious about breaking down barriers to opportunity, it must come to the realisation that increasing school-based provision can only ever be one piece of the puzzle. Failing to recognise this will simply mean that more families lose out.”
It is right: under this Government, more families will lose out.
While I welcome the Education Secretary’s announcement, the reality is that Labour’s decisions are making childcare more expensive and harder to find—[Interruption.] Hard-working families will bear the brunt of this Government’s failure. It is time for the Education Secretary to stop making broken promises and actually make early years her No. 1 priority.
I spoke about visits, and the hon. Member for Harborough, Oadby and Wigston (Neil O’Brien) should go and visit the school-based nursery that will shortly be opening in his constituency. I never hear from Conservative Members that they will be visiting those nurseries or breakfast clubs, so maybe they could take time out of their busy schedules to go and do precisely that. The only priority that they have is to bring back tax breaks for private schools, taking away resources from our state schools. That is the one idea that they have. Their idea of fresh thinking is to spend money they did not raise on plans they did not make.
On the questions asked by the right hon. Member for Sevenoaks (Laura Trott), we are investing £8 billion in expanding early years entitlements, alongside doubling the early years pupil premium, a £75 million expansion grant and compensation for school-based nurseries. The contrast between this Government and the Conservatives is like night and day. I am proud that at the Department for Education, under a Labour Government, it is week in, week out the Department for hope—the hope of a brighter and better future for our children and our country.
We have free breakfast clubs, a cutting-edge curriculum for all our children, the biggest overhaul of children’s social care for a generation, funding for up to 10,000 new school places for children with special educational needs and disabilities, backing for up to 10,000 more apprentices to qualify, new improvement teams in our schools, a new allowance for kinship carers and new support for expanding foster care. That is the difference between this Labour Government and the Conservatives. We are the party of hope. If the Conservatives’ recent leadership contest was anything to go by, they cannot decide if they are the party of fear or the party of despair.
I welcome the sorely needed uplift in the early years pupil premium, but school-based nurseries can only ever be part of the puzzle. We will never fix the crisis in early years without fixing the deep problems facing private and charitable providers. They deliver the vast bulk of the Government’s free entitlement, yet they face some of the toughest challenges in making ends meet. The Government’s national insurance hike, the failure to ensure that rates actually cover delivery costs and damaging guidance to local authorities on funding agreements, which came into effect this week, mean that many are struggling to stay afloat. We have already heard that the Early Years Alliance survey found that four in 10 said they would reduce their number of funded places for three-year-olds and four-year-olds in the next year. Some 94% said they would be forced to raise their fees for parents for non-funded hours, and almost a third said they were likely to permanently close. Can the Secretary of State tell me how that is extending choice for parents? Building Blocks nursery in Teddington in my constituency is now operating at a loss and faces some incredibly painful decisions that will hurt parents, children and staff.
While I welcome today’s announcement, will the Secretary of State commit to an urgent review of the rates paid for free entitlements to ensure that they cover delivery costs? Will she finally take this opportunity to recognise the deep damage that the national insurance hike is doing and ensure that early years providers are exempted? Finally, will she look again at the damaging guidance issued by her Department on charging and funding agreements?
The hon. Lady asks about the charging guidance that has been issued. I believe it is important that parents have greater transparency when it comes to charging and fees, and where they are able to exercise greater choice in what is being offered to them. I believe that is the right approach, not least as we move towards a system in which the vast bulk of childcare is backed by Government.
I note the questions that the right hon. Gentleman asks. We have secured an extra £2 billion in the Budget, taking the total to £8 billion for early years entitlements. In addition, we have a £75 million expansion grant, compensation for public sector employers and, alongside that, the biggest ever uplift in the early years pupil premium. We are working very closely with the sector to deliver the places and the staff required, and we will continue to do so in the months ahead.
I am really grateful to the Secretary of State for her statement and for the fact that the town of Chipping Norton in my constituency will get one of the first 300 school-based nurseries announced today. Does she find it hard, as I do, to take lectures from the Conservative party when it comes to the provision of childcare?
This is the first phase of our announcement. We will draw on the experience of the schools that take part in the first phase as we take forward future phases. The majority of the 6,000 new places created will be available from September 2025. That is the difference that a Labour Government are making.
I am so proud to see that Smallthorne primary academy in my constituency of Stoke-on-Trent North and Kidsgrove has been selected for a new school-based nursery. Does the Secretary of State agree with me that these nurseries are vital in places such as Smallthorne, not only for the childcare they provide, but for helping with school-readiness, closing the developmental gap early on and giving every single child the best start in life?
I thank the Secretary of State for joining me in Peterborough earlier this week to meet the fantastic pupils, parents and staff at Fulbridge academy, which excels in giving great education to students in my constituency. Will she join me in congratulating and paying tribute to Ben Erskine and the brilliant staff team at the school? Does she agree that with leadership, a relentless focus on standards and the resources in today’s announcement, absolutely nothing can hold back the ambition of working-class communities like mine?
I welcome the statement and all the Secretary of State’s work in this area. I particularly welcome the fact that St Stephen’s in my constituency of Worsley and Eccles will be home to one of these nurseries. As the Secretary of State well knows, I have long been a champion of available, affordable and accessible childcare, especially for working parents. Does she agree that delivering on these aims is a real sign that our Government are delivering for children and their parents?
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