Select committee: Education Committee
Recommendation 16
Fifth Report - Support for childcare and the early years
Published 26 Jul 2023
Paragraph 99
Addressed to Department for Education
Education Committee Support for childcare and the early years All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
The Government must do much more to ensure the support available for tax-free childcare is better understood and easier to access. We recommend HM Treasury conduct a fundamental review of tax-free Childcare with a view to making it simpler and easier to use and ensure it is delivering effectively for eligible families. In doing so it should carefully analyse why so many parents who have gone to the trouble of setting up an account do not the use it and seek to monitor ongoing take up and usage of the scheme. Following this review and any changes to the system, the Government should launch a large scale public campaign to improve awareness.
From: Education Committee, Fifth Report - Support for childcare and the early years (HC 969), paragraph 99, 26 July 2023
Government response
The government responded to the whole report on 17 October 2023 (deadline 26 September 2023).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government welcomes the Committee's report and says it is "in full agreement" on the value of childcare and early education, agreeing with some recommendations and declining others, such as VAT and business rates changes.
- On childminders, it says amendments to the Levelling-Up and Regeneration Bill, which it expects to "come into effect from autumn 2024" pending Royal Assent, will raise the number who can work together from 3 to 4 and allow work on non-domestic premises.
- On business rates and VAT, it states it "currently has no plans to make changes" to business rates support for early years businesses or the nursery VAT exemption.
- On local authority funding, it says it intends to increase the minimum pass-through rate from 95% to 97% "once the roll-out of the new entitlements is sufficiently progressed", and will keep the timing "under review".
- On the 30-hours reconfirmation period and funded hours for related childminders, it states there are "no plans at this time" to change eligibility checks and "currently no plans to change" the family-childminder position.