PARLIAMENTARY DEBATE
Childcare Availability - 4 November 2024 (Commons/Commons Chamber)

The early years are my No. 1 priority as Education Secretary. We will deliver a sea change in early years education to give parents better work choices and children better life chances. We will start by repurposing empty classrooms to create or expand school-based nurseries, making childcare more accessible and affordable for hard-pressed families. I encourage state-funded primary schools, working with their local authorities, to consider applying before the application window closes on 19 December.

With Government data showing that 70,000 more early years places need to be created by next year, and with an overhaul of outdated business rates promised, will the Secretary of State commit to removing unfair business rates from nurseries and pre-schools, which will now be mostly delivering Government-funded childcare?

It is undoubtedly a challenge to deliver the roll-out, but we are determined to do it because it is so important for parents and for children’s life chances. We intend to reform the early years sector overall. We will be looking very closely at this into next year; I would welcome further input from the hon. Gentleman and his party on the way forward.

I call Ashley Dalton. Oh, you are not standing. This is not directed at you personally, but when you stand I think you are going to ask a question, and then when you sit down I am left high and dry.

My hon. Friend is right. As the roll-out continues, we will shortly reach a situation in which 80% of childcare is Government-backed. It is therefore right that in those circumstances we look closely at whether we are getting the best-quality provision for our children. As part of our early years strategy review, we will take account of all considerations. We are looking at a range of factors for the sector, including workforce recruitment, quality of provision and much more besides. I look forward to working with her on this.

We welcome the new shadow Secretary of State.

Thank you, Mr Speaker. May I say how delighted I am to be in the role? We will be a constructive Opposition working in the best interests of young people. In that spirit, I ask the Secretary of State to confirm that the Government’s early years funding rates for all age groups will increase to reflect the changes in employer national insurance contributions. Will she give us a figure for how much that will cost the Department for Education?

I welcome the right hon. Lady to her place: it is the best job in opposition, just as mine is the best job in government. I am sure that whatever disagreements we might have in the weeks and months to come, we can all get behind the importance of education to our country.

We will set out more detail on funding rates in due course. What I would say to the right hon. Lady is that the Conservative party left behind commitments, but no plan to make them real. Instead, they left us a £22 billion hole in the public finances, and this Government have had to take some tough decisions to get our public finances back on a stable footing.

I call the Liberal Democrat spokesperson.

Two thirds of early years places are delivered by private and voluntary providers. Further to the shadow Education Secretary’s question, what assessment has the Department for Education made of the impact of last week’s national insurance rise on those providers? How much more does the Department expect that parents will have to pay in nursery fees? How much additional cost will the Department have to bear to fund existing and planned so-called free hours for parents?

As was announced at the Budget, we expect to provide £8.1 billion for the early years entitlements in 2025-26, which is an increase of about 30% on the previous year. We will continue to deliver the roll-outs, because this Government have sought to protect education priorities in the Budget.

On the hon. Member’s precise question, we are looking in more detail at what the changes mean for providers in the early years sector, and we will have more to say shortly. Alongside the changes to the national insurance employer contribution rate, we are increasing the employment allowance to £10,500 and are expanding this to all eligible employers, so smaller providers may pay no national insurance at all in 2025-26.

Alongside formal childcare, many parents want to have the option of spending more time at home with their babies in those precious early months that are so crucial for a child’s development. Does the Secretary of State agree that at less than half the minimum wage, statutory maternity pay is far from “excessive”? What discussions has she had with ministerial colleagues about boosting support for those parents who want to spend more time at home, rather than being rushed back to work, in order to give families real choice in how they care for their children?

I agree that it is important we get the balance right. That is why the Deputy Prime Minister and the Secretary of State for Business and Trade are looking carefully, as part of our wider reforms to employment support and employment law, at what more we need to do around parental leave entitlements. I share the hon. Member’s concern about the comments we have heard from the now leader of the Conservative party, the right hon. Member for North West Essex (Mrs Badenoch), about maternity pay. I want to make sure that parents have choices about what works for them, what is best for them and what best supports their children’s development in those crucial early years.