Childcare Bill introduced to Parliament
Tuesday, June 2, 2015
The Childcare Bill, which will entitle parents to 30 hours of free childcare a week, has had its first reading in the House of Lords.
The Bill was introduced by education minister Lord Nash in the House of Lords yesterday.
It follows the announcement that the Government intends to start a consultation with providers in the next few weeks to review the funding rates for the free hours and bring forward pilots for the 30 hours to September 2016, a year earlier than planned.
The new offer for parents of three- and four-year-olds will be available to working families where all parents in the household work.
The number of hours that parents would need to work to be eligible is yet to be confirmed and is understood that details will be drawn up as part of the ongoing work into the policy.
In their pre-election pledge the Conservatives stated that the offer would be available for parents working a minimum of eight hours a week.
The Department for Education has confirmed that the universal entitlement for all parents of three- and four-year-olds to 15 hours will remain in place.
The Bill places a duty on the secretary of state to secure the availability of 30 hours free childcare for qualifying children of working parents, with details to be set out in regulations.
It also amends section 12 of the Childcare Act 2006, to make provision in regulations for local authorities in England to publish information about childcare and related matters.
The second reading - the general debate about all aspects of the Bill - is due to take place on 16 June.
Meanwhile, childcare voucher providers are warning that parents who do not sign up to childcare vouchers before they are scrapped could miss out on hundreds of pounds of savings.
Iain McMath, CEO of Sodexo Benefits and Rewards Services, said, ‘the true benefit’ that the Childcare Bill will have for ‘individual families is hugely misleading. Along with the Bill comes a number of complications regarding additional childcare support – namely, the introduction of Tax-Free Childcare (TFC).’
While TFC was designed to save parents up to £2,000 per year, in reality the average saving is estimated at just £600, he said, with specific details of the scheme still unknown.
In comparison childcare voucher schemes can save each parent up to £933 per year, contributing £1,866 to a family when both parents are working.
Mr McMath said, ‘It’s important for parents with very young children to think ahead to what their childcare costs are likely to be once the Childcare Bill takes effect. Parents with three- or four- year- olds in full time childcare (50 hours per week) will only be required to pay 40 per cent of the total cost of their childcare for 38 weeks of the year (compared to the 70 per cent they pay with the current free childcare allowance).
‘For the majority of basic rate tax-payers with childcare costs of £9,336 per year or less, childcare vouchers are likely to be a more cost-effective option than Tax-Free Childcare.
‘For many parents, the incentive will be to start receiving childcare vouchers now and certainly before the current cut-off point in autumn 2015 in order to secure a childcare solution that best serves the needs of their family.’
