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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Is Yvette Cooper surging?

The bookmakers and Westminster are in a flurry. Is Yvette Cooper going to win after all? I'm not convinced. 

Is Yvette Cooper surging? The bookmakers have cut her odds, making her the second favourite after Jeremy Corbyn, and Westminster – and Labour more generally – is abuzz with chatter that it will be her, not Corbyn, who becomes leader on September 12. Are they right? A couple of thoughts:

I wouldn’t trust the bookmakers’ odds as far as I could throw them

When Jeremy Corbyn first entered the race his odds were at 100 to 1. When he secured the endorsement of Unite, Britain’s trade union, his odds were tied with Liz Kendall, who nobody – not even her closest allies – now believes will win the Labour leadership. When I first tipped the Islington North MP for the top job, his odds were still at 3 to 1.

Remember bookmakers aren’t trying to predict the future, they’re trying to turn a profit. (As are experienced betters – when Cooper’s odds were long, it was good sense to chuck some money on there, just to secure a win-win scenario. I wouldn’t be surprised if Burnham’s odds improve a bit as some people hedge for a surprise win for the shadow health secretary, too.)

I still don’t think that there is a plausible path to victory for Yvette Cooper

There is a lively debate playing out – much of it in on The Staggers – about which one of Cooper or Burnham is best-placed to stop Corbyn. Team Cooper say that their data shows that their candidate is the one to stop Corbyn. Team Burnham, unsurprisingly, say the reverse. But Team Kendall, the mayoral campaigns, and the Corbyn team also believe that it is Burnham, not Cooper, who can stop Corbyn.

They think that the shadow health secretary is a “bad bank”: full of second preferences for Corbyn. One senior Blairite, who loathes Burnham with a passion, told me that “only Andy can stop Corbyn, it’s as simple as that”.

I haven’t seen a complete breakdown of every CLP nomination – but I have seen around 40, and they support that argument. Luke Akehurst, a cheerleader for Cooper, published figures that support the “bad bank” theory as well.   Both YouGov polls show a larger pool of Corbyn second preferences among Burnham’s votes than Cooper’s.

But it doesn’t matter, because Andy Burnham can’t make the final round anyway

The “bad bank” row, while souring relations between Burnhamettes and Cooperinos even further, is interesting but academic.  Either Jeremy Corbyn will win outright or he will face Cooper in the final round. If Liz Kendall is eliminated, her second preferences will go to Cooper by an overwhelming margin.

Yes, large numbers of Kendall-supporting MPs are throwing their weight behind Burnham. But Kendall’s supporters are overwhelmingly giving their second preferences to Cooper regardless. My estimate, from both looking at CLP nominations and speaking to party members, is that around 80 to 90 per cent of Kendall’s second preferences will go to Cooper. Burnham’s gaffes – his “when it’s time” remark about Labour having a woman leader, that he appears to have a clapometer instead of a moral compass – have discredited him in him the eyes of many. While Burnham has shrunk, Cooper has grown. And for others, who can’t distinguish between Burnham and Cooper, they’d prefer to have “a crap woman rather than another crap man” in the words of one.

This holds even for Kendall backers who believe that Burnham is a bad bank. A repeated refrain from her supporters is that they simply couldn’t bring themselves to give Burnham their 2nd preference over Cooper. One senior insider, who has been telling his friends that they have to opt for Burnham over Cooper, told me that “faced with my own paper, I can’t vote for that man”.

Interventions from past leaders fall on deaf ears

A lot has happened to change the Labour party in recent years, but one often neglected aspect is this: the Labour right has lost two elections on the bounce. Yes, Ed Miliband may have rejected most of New Labour’s legacy and approach, but he was still a protégé of Gordon Brown and included figures like Rachel Reeves, Ed Balls and Jim Murphy in his shadow cabinet.  Yvette Cooper and Andy Burnham were senior figures during both defeats. And the same MPs who are now warning that Corbyn will doom the Labour Party to defeat were, just months ago, saying that Miliband was destined for Downing Street and only five years ago were saying that Gordon Brown was going to stay there.

Labour members don’t trust the press

A sizeable number of Labour party activists believe that the media is against them and will always have it in for them. They are not listening to articles about Jeremy Corbyn’s past associations or reading analyses of why Labour lost. Those big, gamechanging moments in the last month? Didn’t change anything.

100,000 people didn’t join the Labour party on deadline day to vote against Jeremy Corbyn

On the last day of registration, so many people tried to register to vote in the Labour leadership election that they broke the website. They weren’t doing so on the off-chance that the day after, Yvette Cooper would deliver the speech of her life. Yes, some of those sign-ups were duplicates, and 3,000 of them have been “purged”.  That still leaves an overwhelmingly large number of sign-ups who are going to go for Corbyn.

It doesn’t look as if anyone is turning off Corbyn

Yes, Sky News’ self-selecting poll is not representative of anything other than enthusiasm. But, equally, if Yvette Cooper is really going to beat Jeremy Corbyn, surely, surely, she wouldn’t be in third place behind Liz Kendall according to Sky’s post-debate poll. Surely she wouldn’t have been the winner according to just 6.1 per cent of viewers against Corbyn’s 80.7 per cent. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.