MPs call for childcare funding after summer statement disappointment

Sector leaders were hit with fresh disappointment when Rishi Sunak failed to mention childcare and early years in Wednesday’s speech despite focussing on improving the jobs market and tackling youth unemployment.

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The move comes as a fresh blow for providers who have already been hit with a government U-turn on their use of the and missed out on two rounds of funding for catch up plans and to rebuild schools.

Tulip Siddiq, Labour MP and shadow early years minister warned that the sector was “on the brink of collapse” and urged Sunak to provide “urgent financial support for providers”.

She said: “Our economic recovery will be put at serious risk if thousands of childcare places are lost and parents can’t get back to work.”

Kate Green, who was recently named shadow education secretary after Rebecca Long-Bailey was sacked, tweeted following the statement: “Funding for apprenticeships, careers advice and traineeships welcome but underpowered to replace years of funding lost, especially in FE sector, and devil will be in detail. And nothing for universities or childcare - both under huge pressure because of covid.”

Labour MP Stella Creasy said that “without help” parents struggling to find childcare places would be forced to “take their kids to work” or face redundancy.

childcare wasn’t mentioned at all in the chancellors plans today, yet so many nurseries are in debt already and reduced roll numbers due to social distancing mean they need funding now to be there in future. RT to ask @RishiSunak to act before it’s too late! #soschildcare pic.twitter.com/OtOQ1v8QUm

— stellacreasy (@stellacreasy) July 8, 2020

Challenging the Chancellor on the omission of the sector from the summer statement, Creasy added: “So many nurseries are in debt already and reduced roll numbers due to social distancing mean they need funding now to be there in future.”

Sector leaders have also criticised a lack of funding for early years in the summer statement.

Neil Leitch, chief executive of the Early Years Alliance (EYA) branded the statement “short-sighted” highlighting recent data from the alliance which showed as many as one in four nurseries could close by the end of the year.

He said: “It is clear that inaction is not an option - and yet the government continues to ignore the fact that the childcare sector in this country is in crisis.

Purnima Tanuku, chief executive of National Day Nurseries Association (NDNA) said: “Once again we have seen the Chancellor totally undervalue the childcare sector. 

“The sector has been underfunded for years leaving many on the brink. Providers are telling us that without emergency funding the majority will be operating at a loss over the next few months. Many will be forced to close, leaving children missing out on great learning opportunities and parents unable to return to work.”