Recommendation 18

HM Government Not Addressed

Government Response: Impact of Covid-19 on new parents: one year on 9 The Department for Education has spent over £3.5 billion in each of the past three years on our early education entitlements and the Government will continue to support families with their childcare costs. At the Spending Review on 27 October we announced that we are investing additional funding for the early years entitlements worth £160m in 2022–23, £180m in 2023–24 and £170m in 2024–25 compared to the current year. This is for local authorities to increase hourly rates paid to childcare providers for the government’s free childcare entitlement offers and reflects the costs of inflation and national living wage increases. Universal Credit (UC) pays up to 85% of childcare costs, compared to 70% in legacy benefits, and can be claimed up to a month before starting a job. Eligible UC claimants starting work can get help with upfront childcare costs with a payment from the Flexible Support Fund, which is a non-repayable payment. Tax-Free Childcare is a great offer for working parents: for every £8 eligible parents pay into their childcare account, the Government adds £2 up to a maximum of £2,000 per child aged 11 and under per year – and £4,000 per child under 17 if the child is disabled. We also committed within our manifesto to establish a £1 billion fund to help create more high quality, affordable wraparound childcare, including before and after school, and during the school holidays. Much of that has already been realised successfully through the £200 million holidays activities and food (HAF) programme. It was announced in the Spending Review on 27 October 2021 that this programme will be extended for a further three years. the past five months; at the Westminster Hall Debate on 13 September and during the second reading debate on the Private Member’s Bill on Childcare on 29 October. Within the latter debate, we recognised the need for ongoing collaboration and discussion on the issue over coming months but collectively concluded that a formal review is not needed. We recognised, within that debate, that the offer across three Departments (DfE, DWP and HMRC) can in some instances appear fragmented. We are committed to working together across Government to see what we can do to streamline and make the offer more effective, to ensure that it delivers for those parents who access it and is visible to those who need it. MPs on all sides can support this effort by working with local authorities in their constituencies and urging families, particularly those from lower-income backgrounds, to take up the support that is already available to them. The Department is continuing to explore what more can be done to help parents access childcare which will suit them, that is out of hours or before or after school; however, we will not be launching an independent review of childcare at this time. Parents also have a range of parental leave and pay rights, and, like all employees, can ask their employer for a flexible working arrangement. Alongside the steps we are taking on childcare provision, these employment rights may help new parents balance work and childcare. 10 Government Response: Impact of Covid-19 on new parents: one year on