Education Bill

My Lords, like a number of noble Lords who have spoken, the Government are sensitive to concerns about the sustainability of private, voluntary and independent provision. I agree with my noble friend Lord True that we want the early-years sector to remain diverse and to continue to provide parents with a range of options for their children. We know that something like 37,000 different providers currently offer free entitlement, and it is good that we have that range and diversity. The PVI sector plays a significant part in that provision and we want to see that continue. I understand the points that the noble Lord made; as always, he makes his case forcefully and clearly, but I find myself in the same position. The noble Baroness, Lady Hughes of Stretford, set out her concerns about the amendment clearly, and I was interested to hear some of the history of the independent review to which she alluded. The current Government have gone ahead with the early-years single funding formula introduced in April this year. I hope that that will provide greater transparency in how funding for three and four year-olds’ early education is distributed. Greater transparency should help flush out some of these issues. The noble Baroness recognised that, in the past, there was concern that private providers were not getting a fair crack of the whip compared with maintained sector providers. The single funding formula will help. It will mean that parents and providers should be able to hold local authorities more to account. That formula is based on a common set of principles to ensure that funding is distributed to providers based on clear and common criteria. To increase efficiency and fairness, that funding will be participation-led—it is based on children actually participating—rather than place-led, as it was in the past, whether or not the place was filled. That will also help. My noble friend's amendments raise the question of whether providers should be able to charge top-up fees. The Government have considered the issue carefully, but we are clear, as were the previous Government, that provision guaranteed by the statutory entitlement must be free to parents. My honourable friend the Minister of State for Children and Families, Sarah Teather, who is responsible for this area, is clear that she does not see top-up fees as an answer to the concerns that some providers have expressed. Local authorities have a statutory duty under Section 7 of the Childcare Act to secure a prescribed amount of early education free of charge for eligible three and four year-olds. Under Clause 1, we will extend that duty to include disadvantaged two year-olds. There is a danger that allowing providers to charge top-up fees could put the entitlement out of the range of the very people that we most want to help. It would mean that those children who have most to benefit from the early-years help—the most disadvantaged—might be unable to access it. We could not support that. Amendment 8 would ensure that the guidance issued by the Secretary of State under Clause 1 addresses the issues of sustainability and viability. As I said, we have the early-years single funding formula. The Government's commitment to the free entitlement does not prevent providers charging fees for hours outside the 15 free early education hours per week. We take the view that additional hours and services outside those for which the provider receives funding from the local authority are a private matter between the provider and the parent, and it is perfectly reasonable for providers to charge for additional hours or optional extras, provided that access to a free place is not conditional on taking those options. Funding for free entitlement places is one part of a broader package of support to which providers have access. Many receive training and other assistance to support improvements in quality and to secure sufficient childcare provision. We want to work with the sector on issues such as this. I recognise the points that my noble friend raised. As he knows, I always listen to what he says with particular care. We have invited sector representatives, including the Pre-school Learning Alliance, the National Day Nurseries Association, the Daycare Trust and the National Childminders Association, as well as local authorities, to discuss with the department some of the issues that he raised. At bottom, as my noble friend suspected when he rose to move the amendment, we do not want to run the risk of placing barriers in the way of our most disadvantaged families. I therefore ask him to withdraw his amendment.