It is a pleasure to serve under your chairmanship, Mr Gapes, and I congratulate the hon. Member for Bolton West (Chris Green) on securing the debate. As we have heard, our nurseries play a vital role in children’s development and in preparing them for their future education and careers; if we get it right, they play a very important role in promoting social mobility and alleviating poverty. Improving standards should be a central part of that, along with ensuring that they are properly resourced.
Since the Government introduced the new early years funding formula and the 30 hours free childcare policy in 2017, 121 nurseries in England have closed, which is a 66% increase in closures from the previous year. That is a very worrying figure when we know—from the Government’s commitment to provide 30 hours and so on—that their intention is not to see a decline in nursery provision, but that is what is happening. Of the nurseries that have closed since the policy was introduced, 71% received an hourly funding rate of less than £5 per child. A total of 44% received the lower hourly funding rate of £4.30 per child. These recent closures are affecting thousands of families. To be charitable to the Government, I believe this is an unintended consequence of a well-intentioned but flawed policy.
Although I welcome the 30 hours free childcare scheme for working families, the range, complexity and fragmentation that have been mentioned have made take-up less than desirable. Some of the things that have been introduced include the 15 free hours for disadvantaged two-year-olds, the 30 free hours for three and four-year-old children of working parents and the tax-free childcare scheme. In parallel, the childcare voucher schemes have been closed to new entrants, but no assessment has been done to see what the impact would be on those who have benefited and others who could benefit from it. That is despite requests from the Treasury Committee, which I serve on. Although the time was extended, there is still a lot further to go in looking at how childcare vouchers could be used to continue supporting families where schemes have worked well.
The funding situation is underlined by the wider concern about passing on the requirement to increase wage levels as a result of the national minimum wage, and about pension contributions and business rates. Yet, the Government have not faced up to the fact that nurseries cannot afford to pay for that without national Government support. Nor can local authorities step in any longer—again, because of the context of unprecedented funding cuts over many years to local authority budgets.
The wider context is that, in constituencies such as mine, where schools have worked in partnership with nurseries to co-finance and support them, that is no longer an option. Despite some of the changes after the general election, the school system still faces some £2 billion-worth of cuts under the so-called fair funding formula, which is nothing short of a disgrace and is
certainly not fair to constituents such as mine, who have seen a massive cut in school funding. Those options, which have been a huge help in protecting nurseries in constituencies such as mine, are no longer available.
The number of free places for disadvantaged two-year-olds and children with special educational needs and disabilities—something I know the Minister cares deeply about, given his brief—is falling because those children are more expensive to care for due to the higher staff-to-child ratios. The Government have not taken that on board; if they did, they would recognise the important contribution that nurseries working with SEND children make in our constituencies. Two-year-olds are currently not eligible for support from the disability access fund, the early years pupil premium or the SEN inclusion fund, all of which could be used to improve their access to early years provision.
After campaigns and petitions—one petition received over 10,000 signatures—the Government committed in the 2017 early years national funding formula to continue the level of funding for maintained nursery schools until 2019-20 through a supplementary grant of £59 million per year, but there are no guarantees that this will continue after 2020. Our maintained nurseries are left unable to plan and are, as Members will hear shortly, facing closure in some cases. It would represent a 31% cut if there is no continuity of funding, so I hope the Minister will say today what he is going to do post 2020 and whether he is extensively lobbying the Chancellor ahead of his statement to try to address this major problem, because the specialist support that is provided to maintained nurseries is vital if we want to address the specific needs of the children who desperately need that provision.
Maintained nurseries are vital services, and they completely transform lives. I have seen that when visiting nurseries, meeting children and parents across my constituency, and meeting outstanding professionals who work really hard with very little remuneration because they believe in our children and in giving them a good future. Some 64% of maintained nursery schools are in the 30 most deprived areas of England; 63% are graded outstanding by Ofsted because of the quality of education they offer. When Ministers talk about cost savings, they should not use such blunt instruments, which do not take into account the way professionals and families have worked to improve achievement from an early age, creating the building blocks for success in later life.
In those nurseries, admissions policies prioritise children who are in greatest need and provide a high number of places for disadvantaged and SEND children, particularly those with the most complex needs. These children make great progress through the education system, which they would not do otherwise. The average number of available childcare places in areas of disadvantage has fallen from 33 children per 100 in 2016 to just 25 per 100 in 2018. That is a worrying trend, which the Government need to reverse. Across the UK, there are now over 500 fewer Sure Start centres than there were in 2010, so the wider support structure has also crumbled, at a time when families are facing huge pressure, uncertainty and insecurity. That is one area of vital provision that needs protecting.
The child poverty rate in my constituency is the highest in the country, and yet our education system has been transformed over the past 20 years; early years and maintained nurseries have played a critical role in that. We also face funding cuts of 24% from 2010 to 20, and the local authority will have to make a further £58 million-worth of savings because of the national Government cuts. In that context, unfortunately, the local authority can no longer co-finance and meet the shortfall of a number of maintained nurseries in my constituency. I am deeply concerned about that, because it was announced this September that three out of six were to be closed. We simply cannot afford for that to happen, but the local authority no longer has the bandwidth to be able to continue to finance them.
Nurseries such as Overland, Mary Sambrook and John Smith have made huge differences to children’s lives. For example, the Overland children’s centre provides specialist care services for deaf children. Parents are extremely anxious about what is going to happen in the future, and they are particularly concerned about other children who could have benefited from those nurseries but who will no longer be able to.
I hope the Minister will heed the warnings of a cross-party group of more than 70 Members of Parliament, including 12 from his own party, who called on the Government to think again about the funding that is available for this important service. I also hope he will heed the Treasury Committee’s report, which recommended that the Government ensure that the costs that are being passed on through the national minimum wage, pension contributions and business rates are borne by national Government. Otherwise, nurseries will have no option but to charge—some have started to do so, making a mockery of the policy of 30 or 15 hours of free childcare—or, as the Minister is aware, to close.
The Treasury Committee also called on the Government to look closely at why take-up is so low. At the time, it was 90% lower than initially expected. We highlighted the importance of targeting disadvantaged people, because the new arrangements do not seem to be reaching those communities and families.
Cutting back higher quality staff and changing the services that were previously free may undermine the Government’s overarching policy objective of supporting those who live in disadvantaged areas, including constituencies such as mine and those of many other Members of Parliament. I hope the Minister will redouble his efforts to persuade the Chancellor to do more to finance this important sector, which is vital to the future of our children and our country.
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