Childcare Payments Bill — New Clause 1 — Require Report on Proposed Additional Childcare Support and Early Education — Three and Four Year Olds — 17 Nov 2014 at 18:30

The majority of MPs voted not to require a report on the impact of proposed additional state help with childcare costs, and additional free early education and childcare, on those responsible for children aged three or four.

MPs were considering the Childcare Payments Bill^[1]. The proposed new clause, rejected in this vote was titled: Proposals relating to three and four year olds and stated:

• (1) The Chancellor of the Exchequer shall within three months of this Act coming into force lay a report before the House of Commons setting out—
• (a) an assessment of the benefits of top-up payments to people responsible for a child or children aged three to four years since the Act came into force; and
• (b) an assessment of those benefits in addition to the likely benefits of funding 25 hours per week free childcare for working persons responsible for a child or children aged three and four.

The top-up payments referred to in the rejected new clause are the state payments of 25% of childcare costs, capped at £2,000 per child each year, for those responsible for children and in work as provided for in the Childcare Payments Bill^[1]. The explanatory notes to the Bill^[2] state an intent to make the payments in relation children under 12,(under 17 for disabled children) as well as an intent to make the payments available to those earning up to £150,000 per year. These top-up payments were announced in the 2013 Budget when they were described as "tax-free childcare"^[2]. The scheme has been publicised and has a start date of Autumn 2015^[3].

At the time of the vote all 3 and 4-year-olds in England were entitled to 570 hours of free early education or childcare a year (typically taken as 15 hours each week for 38 weeks of the year).^[4] The debate prior to this vote, and the Labour website^[5], make clear that Labour are proposing increasing the amount of publicly funded early education or childcare to 25 hours per week for working people. The rejected new clause would have required an assessment to be made of the impact of both the Government's scheme and the Labour policy.

• [1] Parliament's webpage on the Childcare Payments Bill
• [2] Explanatory notes to the Childcare Payments Bill
• [3] Government News Story, Tax-Free Childcare: 10 things parents should know, March 2014
• [4] Free early education and childcare
• [5] Childcare section of Labour Party website, viewed 22 November 2014

Debate in Parliament | Source |