After Labour's offer, the political battle on childcare has heated up

The party needs to show how new 'guarantees' will be delivered. If not, the Tories, with their offer of more money in parents’ pockets, could win the all-important female vote.

Earlier this week, Labour retook the initiative on childcare with the announcement of a major extension in free care for three-and-four-year-olds. Having been the party that established childcare as a new frontier of the welfare state when in government, Labour’s lack of a clear policy direction over the last year had left room for the coalition to creep in with its proposals. A YouGov poll for the Resolution Foundation conducted before the announcement revealed that even Labour supporters felt that the Lib Dems had better ideas on childcare than their own party. But Labour has come back with force. Will its ideas on childcare help it reclaim the all important women’s vote – a major battle ground at the next election? And will the Tories try to reclaim the initiative next week in Manchester?

Children aged three and four are currently entitled to 15 hours of free early education and care. Labour's plan would extend that free entitlement by a further 10 hours for families with working parents. One of the central complaints about the existing free entitlement is that it is just too short to help second earners – usually mothers - to work part-time. This is because when it was introduced it was designed around child development not the labour market. But with living standards now the dominant issue for all political parties, the extension to 25 hours is intended to make a part-time job possible.

Labour also set out a bold offer for parents of primary age children – a guarantee of childcare before and after school. While childcare for under-fives is more expensive, parents of older children struggle with the mismatch between the school day and the working day. Unless childcare can be easily wrapped around the school day, keeping a job can be a challenge.

Despite a decade of investment by government, the cost of childcare is still a major issue for families. A poll of 1,000 users of the parents’ website Mumsnet for the Resolution Foundation in advance of Labour conference found that nearly half of all respondents said that they found it more difficult to manage the costs of childcare in the past year compared to only one in 10 who thought the situation had improved. In fact, those who can are increasingly relying on grandparents or other types of informal care to reduce their childcare bill.

More free hours of childcare, as Labour has proposed, will definitely help to make work pay, particularly for lower-earning women for whom the costs of childcare eat up a large chunk of every extra pound they earn. The extension of the free entitlement and the guarantee for older children are also clearly distinct from the coalition’s current proposal announced at this year’s budget to create a new childcare voucher for better-off parents. The coalition has chosen to put more money in parents’ pockets; Labour to ensure more free provision is available.

With competing proposals in place, there is a lot to play for politically. When asked which of the parties has the best ideas on childcare, four in ten Mumsnet survey respondents said "none of them" and almost as many (38 per cent) answered "don’t know". Only 11 per cent named Labour and four per cent both the Conservatives and Liberal Democrats as having the best ideas on childcare.

If Labour can deliver on its announcements and communicate them to parents, it has a clear opportunity to win over the undecided majority. Here the concept of a 'guarantee' is a useful approach. But it will only work in Labour’s favour if parents can get the childcare to which they are entitled. This is where the risk lies for Labour. There are long-standing problems with access to the existing 15 hours entitlement because it is underfunded. Labour needs to ensure that any new entitlements and 'guarantees' can be delivered. If not, the Tories, with their offer of more money in parents’ pockets could grab the all-important female vote. 

Chancellor George Osborne during a visit to a nursery in Hammersmith on August 5, 2013 in London. Photograph: Getty Images.

Vidhya Alakeson is deputy chief executive of the Resolution Foundation

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com