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

Photo: Getty
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Grenfell survivors were promised no rent rises – so why have the authorities gone quiet?

The council now says it’s up to the government to match rent and services levels.

In the aftermath of the Grenfell disaster, the government made a pledge that survivors would be rehoused permanently on the same rent they were paying previously.

For families who were left with nothing after the fire, knowing that no one would be financially worse off after being rehoused would have provided a glimmer of hope for a stable future.

And this is a commitment that we’ve heard time and again. Just last week, the Department for Communities and Local Government (DCLG) reaffirmed in a statement, that the former tenants “will pay no more in rent and service charges for their permanent social housing than they were paying before”.

But less than six weeks since the tragedy struck, Kensington and Chelsea Council has made it perfectly clear that responsibility for honouring this lies solely with DCLG.

When it recently published its proposed policy for allocating permanent housing to survivors, the council washed its hands of the promise, saying that it’s up to the government to match rent and services levels:

“These commitments fall within the remit of the Government rather than the Council... It is anticipated that the Department for Communities and Local Government will make a public statement about commitments that fall within its remit, and provide details of the period of time over which any such commitments will apply.”

And the final version of the policy waters down the promise even further by downplaying the government’s promise to match rents on a permanent basis, while still making clear it’s nothing to do with the council:

It is anticipated that DCLG will make a public statement about its commitment to meeting the rent and/or service charge liabilities of households rehoused under this policy, including details of the period of time over which any such commitment will apply. Therefore, such commitments fall outside the remit of this policy.”

It seems Kensington and Chelsea council intends to do nothing itself to alter the rents of long-term homes on which survivors will soon be able to bid.

But if the council won’t take responsibility, how much power does central government actually have to do this? Beyond a statement of intent, it has said very little on how it can or will intervene. This could leave Grenfell survivors without any reassurance that they won’t be worse off than they were before the fire.

As the survivors begin to bid for permanent homes, it is vital they are aware of any financial commitments they are making – or families could find themselves signing up to permanent tenancies without knowing if they will be able to afford them after the 12 months they get rent free.

Strangely, the council’s public Q&A to residents on rehousing is more optimistic. It says that the government has confirmed that rents and service charges will be no greater than residents were paying at Grenfell Walk – but is still silent on the ambiguity as to how this will be achieved.

Urgent clarification is needed from the government on how it plans to make good on its promise to protect the people of Grenfell Tower from financial hardship and further heartache down the line.

Kate Webb is head of policy at the housing charity Shelter. Follow her @KateBWebb.