PARLIAMENTARY DEBATE
Childcare Provision - 11 March 2024 (Commons/Commons Chamber)

We are removing one of the biggest barriers for working parents by vastly increasing the amount of free childcare that working families can access. By 2027-28, we expect to spend more than £8 billion every year on free hours in early education, double what we are spending now, to help working families with their childcare costs.

My constituent Diane Bennett, who runs a small group of very popular local nurseries, tells me how appreciative she is of the Government’s plan for childcare and early education, particularly the £500 million of additional funding that has been secured. Clearly, as she and other nursery providers look ahead, she is concerned that, although the Government have a clear plan, there is no clear plan coming from the Opposition. Can my hon. Friend set her mind at rest?

My hon. Friend is right. Last week the Chancellor announced that we will be increasing rates until the end of 2027 for early years providers, which is something they have asked for. I cannot give my hon. Friend any reassurance about Labour’s plan, because it has no plan. The shadow Secretary of State says that childcare is her top priority, yet she has no plan for it. What does that say? Parents should be very worried about Labour getting into power, both for the childcare on which they rely and for every other area of education.

Families right across my constituency are finding it increasingly hard to access affordable childcare locally. From speaking to two providers last week, it is clear to me that the current level and structure of free hours funding, even with the Government’s recent announcement, is not going to go far enough to allow these providers to expand, given the capacity and staffing costs that would entail. What reassurances can the Minister offer families in my area that, finally, the Government are going to get on top of the childcare crisis we are facing and make sure that families in my constituency will not have to go without?

We set our rates based on a survey of more than 9,000 providers, in order to get those right. Last year we saw a 13,000 increase in the number of staff in the sector and a 15,000 increase in the number of places. We work with every local authority to make sure that they have sufficient places, and I am confident that the hon. Gentleman’s area will have that too.

Gloucestershire County Council cares about our childcare businesses and listens to my calls to make sure that monthly payments are going to childminders. As we have heard, the Chancellor is putting in another slug of money—£500 million—but local childminders are telling me that things such as the proposed date of payment mean that they are still out of pocket and still cannot pay their staff. Therefore, all the work is not being felt on the ground. Will the Minister meet GCC and I to iron out some of these mechanical issues at local authority level, so that everybody can benefit from what the Government are doing?

I thank my hon. Friend for continuing to champion this sector. She is absolutely right about the importance of paying on a monthly basis, which we encourage all local authorities to do. We will be saying more about that in the coming weeks, and I will be happy to meet her to discuss this further.

The Minister will be aware that private equity firms have been causing great damage in other parts of the education sector, such as children’s homes and special schools, but we are now starting to see this in childcare. Oakley Capital has acquired Lilliput nursery in Hersham and Elmbridge, and has hiked up prices by a staggering 25%; that is an additional £365 per child per month, which parents simply cannot afford. Does he agree that it is quite wrong for private equity firms to be making these eye-watering profits on the backs of hard-working parents? What is he going to do to stop this happening?

The hon. Lady is right to raise the issue of profiteering that we have seen in some areas of children’s care and social care. We will be setting out some steps that we will be taking on that shortly. I do not know the specifics of the case she has just referenced, but, again, if she writes to me, I will be happy to look at it.