This Conservative Government are investing more in childcare than at any other point in our country’s history, ensuring that parents do not have to choose between having a family or having a career. With 30 hours of free childcare on offer from the end of parental leave to the start of school, the Under-Secretary of State, my hon. Friend the Member for Wantage (David Johnston)—I welcome him to his place—is working hard to expand the capacity through new capital investment, more avenues into the workforce and increasing childcare rates.
At a Westminster Hall debate on childcare earlier this year, before the Secretary of State’s proposed changes were announced, I expressed concern that low-income families were facing high childcare costs that might make it sub-economic to return to work. Will she tell me how the changes that she has been making will help prevent that?
I thank my hon. Friend for his question. Just to remind everybody, under Labour, parents got just 12.5 hours for three and four-year-olds—less than an hour of free childcare per year in office. We will be spending more than £8 billion a year by 2027-28 to fund 30 hours of free childcare for working parents of children aged nine months to the start of primary school and giving every parent access to wraparound childcare between 8 am and 6 pm, Meanwhile, Labour still does not have a policy for parents.
A nursery owner in my constituency told me how the Government’s funding for so-called “free” hours covers only about half of their costs, and even with the recently announced uplift for three and four-year-olds, the rate simply does not meet their needs. The Early Years Alliance found that a third of childcare providers suggested that they may close within a year due to rising costs. What will the Secretary of State do to ensure that all these parents who are being told that they are now eligible for free childcare are actually able to access some?
Specifically, I will deliver free childcare for all parents of nine-month-olds until they start school. We have worked with 10,000 businesses to make sure that we get this right. We are supporting the development of new places, by increasing the rates by up to £200 million this year and £288 million next year. We also have a huge programme of work. We will be considering all options to make sure that we are increasing the capacity in the system and that there is enough money in the system to deliver on our policies.