David Cameron's great childcare con

This isn’t just bad news for parents and children, it’s bad news for the economy too, says Sharon Hodgson.

Today’s coverage of David Cameron’s childcare policies has illustrated how out of touch this Government is. While they give tax cuts to those at the top, they have totally failed to support hardworking families with the cost of childcare.

As one mother, who works from home as a childminder, put it: “I remain unconvinced that it does anything for the typical working/lower middle class family”.

She is right. According to the Resolution Foundation think tank, 900,000 low income working families will not benefit from David Cameron’s childcare vouchers.

And of course no-one will get any help until 2015. There has been nothing for families in five years from this Government, while costs continue to rise and wages stagnate. And of course when it comes to living standards, hardworking parents have already seen their family budgets squeezed.

Working parents with two children have already lost £1,500 a year from the cut in childcare tax credits. Added to that, many mums have lost hundreds of pounds because of cuts to maternity pay, child benefit and pregnancy grants.

By the next election, George Osborne will have taken a total of £15 billion out of parents’ pockets.

All this is happening while costs continue to spiral. Childcare costs are rising faster than wages. A parent buying 50 hours of childcare per week for a child under two now faces an annual bill of nearly £11,000 per year or £14,000 per year in London. That’s the equivalent of a second mortgage.

And yet provision is getting patchier. Unbelievably, there are now 5,000 fewer childcare places since last year, as nurseries close down and childminders go out of business.

And many nurseries and children’s centres are charging top up fees for services that used to be free, pricing yet more hardworking families out of the labour market.

This isn’t just bad news for parents and children, it’s bad news for the economy too.

Labour want to ensure parents are able to go back to work if they want to. That’s why we’re looking to countries in Scandinavia who provide stronger support for childcare and where female unemployment is lower.

But this Government has made it more difficult for new mums to return to their job.

An Aviva survey found that 32,000 women left the workforce in one year since summer 2010 due to high costs of childcare making it more cost-effective to stay at home.

The summer holidays are a particularly tricky time for working parents. Those who can’t afford a private nanny or nursery are often forced to take time off work or rely on help from friends or families.

Labour was working to address this in Government. We tripled the number of holiday childcare places, but in their first year this Government cut 10,000 of those places, and have slashed the budget for holiday childcare by 40% so far.

There’s no doubt that childcare costs are one of the biggest drivers of living standards. The trouble is that hardworking parents have seen their income squeezed since the last election.

Only David Cameron could be so out of touch to think parents will be grateful for some help in 2015, when they’ve already seen their childcare support cut.

Sharon Hodgson MP is Labour’s Shadow Children’s Minister

David Cameron visits a school. Photo: Getty
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I believe only Yvette Cooper has the breadth of support to beat Jeremy Corbyn

All the recent polling suggests Andy Burnham is losing more votes than anyone else to Jeremy Corbyn, says Diana Johnson MP.

Tom Blenkinsop MP on the New Statesman website today says he is giving his second preference to Andy Burnham as he thinks that Andy has the best chance of beating Jeremy.

This is on the basis that if Yvette goes out first all her second preferences will swing behind Andy, whereas if Andy goes out first then his second preferences, due to the broad alliance he has created behind his campaign, will all or largely switch to the other male candidate, Jeremy.

Let's take a deep breath and try and think through what will be the effect of preferential voting in the Labour leadership.

First of all, it is very difficult to know how second preferences will switch. From my telephone canvassing there is some rather interesting voting going on, but I don't accept that Tom’s analysis is correct. I have certainly picked up growing support for Yvette in recent weeks.

In fact you can argue the reverse of Tom’s analysis is true – Andy has moved further away from the centre and, as a result, his pitch to those like Tom who are supporting Liz first is now narrower. As a result, Yvette is more likely to pick up those second preferences.

Stats from the Yvette For Labour team show Yvette picking up the majority of second preferences from all candidates – from the Progress wing supporting Liz to the softer left fans of Jeremy – and Andy's supporters too. Their figures show many undecideds opting for Yvette as their first preference, as well as others choosing to switch their first preference to Yvette from one of the other candidates. It's for this reason I still believe only Yvette has the breadth of support to beat Jeremy and then to go on to win in 2020.

It's interesting that Andy has not been willing to make it clear that second preferences should go to Yvette or Liz. Yvette has been very clear that she would encourage second preferences to be for Andy or Liz.

Having watched Andy on Sky's Murnaghan show this morning, he categorically states that Labour will not get beyond first base with the electorate at a general election if we are not economically credible and that fundamentally Jeremy's economic plans do not add up. So, I am unsure why Andy is so unwilling to be clear on second preferences.

All the recent polling suggests Andy is losing more votes than anyone else to Jeremy. He trails fourth in London – where a huge proportion of our electorate is based.

So I would urge Tom to reflect more widely on who is best placed to provide the strongest opposition to the Tories, appeal to the widest group of voters and reach out to the communities we need to win back. I believe that this has to be Yvette.

The Newsnight focus group a few days ago showed that Yvette is best placed to win back those former Labour voters we will need in 2020.

Labour will pay a massive price if we ignore this.

Diana Johnson is the Labour MP for Hull North.