Editorial: Childcare proposals have political importance

Policy Exchange is fast becoming to David Cameron's Conservatives what the Institute for Public Policy Research has been to New Labour under Blair and now Brown - it has genuine influence. Indeed, the political right will have a natural affiliation with the principles underpinning this report. A PCA would be simple to administer and give parents choice over who will provide childcare. The report criticises the current system of funding support for being linked too heavily to the use of formal Ofsted-registered childcare. It says this penalises parents who want to use private and voluntary providers and informal care such as grandparents.

It also attacks the current system over its rewards for parents who are in employment. Measures such as the childcare element of the working tax credit are all about getting parents back into work and reducing child poverty. However, putting cash directly into parents' hands could prove politically popular if it is seen to encourage mothers to stay at home and look after their children.

The Policy Exchange report spells out a vision of universal provision and parental choice. But its recommendations would spell the end of targeted support for the poorest families and break the direct link between childcare support and the fight against child poverty.

There is much in Little Britons for both government and opposition to consider. One interesting proviso it makes about the PCA is that "information provision and education in parenting are critical to this recommendation" and that "targeted outreach to neediest families should be further explored." Cameron pledged last month to phase out Sure Start outreach workers, who provide a crucial buffer to disadvantage. He must reverse this pledge if he isn't to turn his back on the country's most disadvantaged children, just because it doesn't hold any votes for his party.