The coalition needs to improve the quality of childcare, not just the cost

There is a gulf in the quality of childcare available to parents in prosperous areas and those in deprived areas.

“I don’t need childcare, I have a wife.” This was one of the responses to a recent survey we carried out for our upcoming report on childcare. The government is right to worry about the equality of choice for women when attitudes like this still exist.  

Women’s employment rates since the birth of a child never reach the same level as men’s, even after their children are teenagers.  Yet, increases in female employment have been shown by recent analysis to be the key driver of increases in wealth among low and middle-income families in the last 50 years. Finding the right kind of high quality and affordable childcare, which makes a return to work financially viable, is rightly high on the political agenda as we kick start 2013.

Analysing Ofsted inspection marks from last year, Policy Exchange has today highlighted a gap between the quality of childcare available to parents across the country. Three quarters (77 per cent) of childminders were judged "good" or "outstanding" by Ofsted last year compared to only 61 per cent of childminders working in more deprived areas. This is deeply worrying as we know that high quality early years education improves children’s life chances.  Research has shown that in terms of vocabulary development, the poorest children are the equivalent of 16 months behind those in the highest income families. 

Our report also highlights that only 1 in 10 childminders and just over 1 in 5 daycare staff hold a qualification above A-Level equivalent.  We need to attract more bright graduates into the early years profession, particularly into these deprived areas which are most in need of high quality provision.  We should ensure that professionalization can be reflected in pay rates by prioritising early years education spend.

Despite citing quality as the most important factor in choosing a provider  cost was more important for low-income families. This increases the pressure on some nurseries to provide the cheapest childcare in order to attract parents.  If we want consumer choice to drive improvements, we have to ensure that all consumers, particularly those on low incomes, are genuinely able to make informed decisions based on quality and not cost.  Publishing Local Authority childcare provider quality ratings will allow parents to compare providers in their area alongside Ofsted ratings in order to make a more informed decision and better hold Local Authorities to account. 

Entitlement to free early years education is taken up less by the most disadvantaged families.  Equally, we estimate that 52,000 recipients who already apply for Working Tax Credit (WTC) and are fully eligible for the childcare element do not in fact claim it.  Furthermore, the HMRC have estimated that £265m was claimed erroneously in 2010/11, the majority in error, totalling 16.5 per cent of the total budget.  Simplification of the system for claiming childcare support by introducing online childcare accounts, which the childcare element of WTC, employer vouchers, and any money parents, friends or relatives wanted to set aside for childcare, could be paid into.  As a parent, you would not have to make complicated calculations about whether you are better off with vouchers or tax credits as the applications would be managed through one system and you could instantly access the most financially sensible choice.   

The coalition has an opportunity to address these issues in its response to the Nutbrown Review next week. Let’s hope the quality of childcare is at the top of its agenda.

David Cameron is pictured during a visit to a London Early Years Foundation nursery. Photograph: Getty Images.

Lucy Lee is head of education at Policy Exchange

Photo: Getty
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Who will win in Manchester Gorton?

Will Labour lose in Manchester Gorton?

The death of Gerald Kaufman will trigger a by-election in his Manchester Gorton seat, which has been Labour-held since 1935.

Coming so soon after the disappointing results in Copeland – where the seat was lost to the Tories – and Stoke – where the party lost vote share – some overly excitable commentators are talking up the possibility of an upset in the Manchester seat.

But Gorton is very different to Stoke-on-Trent and to Copeland. The Labour lead is 56 points, compared to 16.5 points in Stoke-on-Trent and 6.5 points in Copeland. (As I’ve written before and will doubtless write again, it’s much more instructive to talk about vote share rather than vote numbers in British elections. Most of the country tends to vote in the same way even if they vote at different volumes.)

That 47 per cent of the seat's residents come from a non-white background and that the Labour party holds every council seat in the constituency only adds to the party's strong position here. 

But that doesn’t mean that there is no interest to be had in the contest at all. That the seat voted heavily to remain in the European Union – around 65 per cent according to Chris Hanretty’s estimates – will provide a glimmer of hope to the Liberal Democrats that they can finish a strong second, as they did consistently from 1992 to 2010, before slumping to fifth in 2015.

How they do in second place will inform how jittery Labour MPs with smaller majorities and a history of Liberal Democrat activity are about Labour’s embrace of Brexit.

They also have a narrow chance of becoming competitive should Labour’s selection turn acrimonious. The seat has been in special measures since 2004, which means the selection will be run by the party’s national executive committee, though several local candidates are tipped to run, with Afzal Khan,  a local MEP, and Julie Reid, a local councillor, both expected to run for the vacant seats.

It’s highly unlikely but if the selection occurs in a way that irritates the local party or provokes serious local in-fighting, you can just about see how the Liberal Democrats give everyone a surprise. But it’s about as likely as the United States men landing on Mars any time soon – plausible, but far-fetched. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.