Launching its manifesto today, the leader of the Conservative party David Cameron has announced he will extend the number of free hours from 15 to 30 hours a week, equivalent to £5,000 a year.
The new offer, open only to working families where all parents in the household work even if part-time (from eight hours a week), would come into effect from 2017. It would be paid for by reducing the tax relief on pension contributions for people earning more than £150,000 - a cost of £350m a year once fully implemented
The hourly funded rates paid to providers would be increased. The political party would consult on the 'appropriate level and design of the uplift'.
A Conservative Government would start building capacity in the sector from 2017, including making capital funding available for new nursery provision in schools.
Mr Cameron said, ‘A good life should mean that raising your family feels like an incredible, joyful, and sometimes exhausting journey. But it shouldn’t be a permanent struggle with the bills.
‘That is why our second commitment to working people is on childcare. For families with young children, this is not one issue among many – it is the issue.’
Neil Leitch, chief executive of the Pre-School Learning Alliance, said, 'Given that only a few months ago, we were told that it was ‘nonsense’ to suggest that the early years sector is underfunded, we warmly welcome the commitment to raise local funding rates. That said, it seems somewhat counterintuitive to commit to doubling the free entitlement offer before consulting with providers to find out the size of the current funding shortfall. While this is clearly an attractive pre-election pledge, it must be adequately costed if it is to succeed in the long-term.'
He added, ‘It is important to remember that childcare is about more than enabling parents to return to work. The first five years of a child’s life are crucial to their long-term development – as such, it is vital that whoever is in government after May 7 is willing and able to provide the investment that providers need to be able to deliver affordable, sustainable and, crucially, high-quality early education and care.’
Purnima Tanuku, chief executive of the National Day Nurseries Association, said, 'While we welcome this commitment to provide more support to families with the cost of childcare, we warn that doubling the number of hours will just double the problem, resulting in significant cost increases for parents of children under three and also nursery closures.
'With the current 15 free hours, there is already a chronic underfunding issue, so any extension of this provision must be thoroughly costed and properly funded so that it can be delivered sustainably and without a reduction in quality.'
Liz Bayrm, chief executive of PACEY, said, 'While we are encouraged that the Conservative party has placed childcare at the top of its election manifesto, the doubling of free childcare to 30 hours a week is something that would have to be adequately funded to work effectively in the long-term, both for parents and childcare professionals.
'To our members, the more pressing priority is to ensure that current funding is used as effectively as possible in order to allow them to uphold quality across the sector.'
Mr Cameron also announced plans to change the law, if the political party wins the election, so anyone earning the minimum wage will not pay income tax.
