Some childcare problems are easy to fix

The consultation on the government’s Childcare Commission closed on 31 August. So has it been meaningful or was it merely a gesture to be seen to be seeking the views of parents, carers and those working in the sector?

In launching the commission, the Prime Minister announced it would look at how to reduce the costs of childcare for working families, and the burden on childcare providers. He acknowledged that the affordability and availability of childcare are central to enabling parents to work sufficient hours to support their families.

But the picture is now complicated by the fact that the co-chairs of the consultation – former children’s minister Sarah Teather and former work and pensions minister Maria Miller – have been moved in the reshuffle. We wait to hear what the new minister responsible for early years and childcare, Elizabeth Truss, has to say.

My first reaction to Truss’s appointment was disappointment. I have previously questioned her claim that quality childcare could be provided more cheaply. Her report for the think-tank Centre Forum earlier this year suggested the UK should adopt a model of childcare regulation and inspection similar to that used in the Netherlands. It raised a few heckles among sector professionals. However, Truss insists she is passionate about the early years and affordable childcare and is keen to make a difference. So what can we realistically expect the outcome of the consultation to be? Obviously any major reforms would take time, but the government could achieve some quick wins that might appease parents and the sector.

Let’s take childcare vouchers. The Daycare Trust, Family and Parenting Institute and the National Childminding Association have called on the government to explore how all parents could access childcare vouchers regardless of whether or not their employer offers them.

Tax exemptions on the vouchers were introduced in 2005 to help working parents meet the costs of childcare. Parents can currently sacrifice up to £55 of their salary a week to pay for registered childcare using vouchers that are non-taxable and exempt from National Insurance. This can save a parent using the scheme up to £933 a year.

The charities want the scheme to be extended to the self-employed, warning that 95 per cent of parents do not currently use vouchers. While this would be a great long-term goal, it wouldn’t be a quick win.

But raising the cap on childcare vouchers to £75 a week could be a popular move and help many parents meet their costs. The cap has not changed since April 2006, but the economic climate has changed dramatically. Families are finding it increasingly difficult to meet living costs in the face of recession, inflation and a squeeze on pay and benefits. Further support should be provided to working families. An increase in the cap would provide an additional saving for each parent of more than £300 a year at minimal cost to the Treasury.

Another easy solution would be to encourage nurseries to work more closely with childminders to offer flexibility for parents wanting childcare outside “normal” hours. Meanwhile, exempting nurseries from VAT and business rates would provide a level playing field for settings in the public and private sectors. This would certainly help address the shortfall in places for the free entitlement for three- and four-year-olds.

I hope Truss persuades the Treasury over the longer term of the need to totally reform early years and childcare funding. She should review how funding can be simplified and better spent to help those families who really need help. This includes considering looking much wider and across government departments – for example, care vouchers to meet the needs of families caring for young and old.

Hopefully, Truss will look at the consultation responses and listen to those who work in the sector. Let’s hope she reconsiders her earlier views and offers parents and the sector some quick wins, and that the government recognises that quality, affordable childcare is central to economic growth.

Denise Burke is director of United for All Ages and the Good Care Guide