PARLIAMENTARY WRITTEN QUESTION
Children: Day Care (4 March 2015)

To ask the Secretary of State for Education, how much and by what percentage the cost of childcare has increased (a) in nurseries and (b) for childminders in London since 2010.

Asked by:
Alison McGovern (Labour)

The Department for Education does not collect its own data, but uses cost information from a number of independent surveys, such as the Family and Childcare Trust Annual Childcare Cost Survey 2015 which can be found online at: http://www.familyandchildcaretrust.org/childcare-costs-surveys. The FCT survey measures the average market price for 25 hours of paid-for childcare and, therefore, takes no account of the 15 hours free early education and childcare that the majority of parents of young children are entitled to.

The Department has already increased funding in the early years from £2 billion to £3 billion a year over the course of this Parliament. We are the first Government to fund 15 hours a week of free childcare for all three- and four-year-olds and for disadvantaged two-year-olds. The funding for all three and four-year-olds is worth an additional £425 a year per child; and the funding for around 40% of two-year-olds, £2,500 a year per child.

We will be introducing Tax-Free Childcare from autumn 2015, under which up to 1.8 million working families could benefit by up to £2,000 per child, per year.

For working parents on low and middle incomes, working tax credit pays up to 70% of their childcare costs which could be worth up to £6,370 for their first child. Under Universal Credit, the subsidy rate will increase to 85% of childcare costs and support will be available, for the first time, to those working fewer than 16 hours per week.

In relation to childcare costs in London being higher, we have invested £30 million to increase the number of childcare places available for two-year-olds and to encourage more school nurseries to open from 8am - 6pm. Linked with this, we are working with the Family and Childcare Trust, the Greater London Authority and the Local Government Association, and with the support of London Councils, on a project to help schools in London develop flexible, full-day nursery provision. The project, and the learning it generates, will increase the amount of flexible childcare available and the choices that parents have.

Answered by:
Mr Sam Gyimah (Liberal Democrat)
9 March 2015