Rishi Sunak denies childcare system is in crisis

A child playing with play bricks at a nursery.
Expanded support for childcare in England was announced during the Spring Budget. Credit: PA

Rishi Sunak has denied the childcare system is in crisis as he defended the expansion of financial support detailed in the Budget.

Under the government’s plans, free childcare for working parents will be expanded, so that by 2025 children under the age of five in all eligible households in England will be entitled to 30 hours a week free childcare, from the moment maternity leave ends.

During the prime minister’s grilling by the Liaison Committee on Tuesday, Petitions Committee chairwoman Catherine McKinnell asked him: "The childcare system is in crisis, would you agree?"

Childcare: What concerns have been raised about the chancellor's new policy?

Mr Sunak replied: "No, I don’t think I would.

"I think that announcements in the budget were warmly welcomed by the childcare sector for what they’re going to do, which is to increase the funding for childcare as it is now, but also expand the provision to cover some of the gaps in the existing system and move us into a internationally quite generous position relative to our peers on childcare."

The Labour MP said that parents currently spending 30% of their household income on childcare "would say that it is currently in crisis".

The prime minister conceded that "we have, relative to other countries, more expensive childcare", adding that one of the steps taken to address that was to change minimum staff-to-child ratios from 1:4 to 1:5 for two-year-olds in England.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To know

When Ms McKinnell raised safety concerns about the new ratios, Mr Sunak said it was not a "dramatic" change and it was optional.

The government will provide £4.1 billion by 2027-28 to expand the 30 hours a week of free childcare for working parents of younger children.

Ministers will also provide £204 million in 2023-24 - increasing to £288 million in 2024-25 - to raise the hourly funding rate paid to childcare providers in England to deliver the existing free hours offer.

Asked why someone with a two-year-old presently will never benefit from the additional funding, Mr Sunak said: "The reason it takes time to roll out the very substantive increase in provision is because it takes time to recruit more childminders."

Incentive payments of £600 will also be piloted by the government for childminders joining the profession and £1,200 if they join through an agency.

Challenging Mr Sunak about the logic behind the double bonus for those signing up through one of six private childcare agencies, Ms McKinnell asked whether he wanted to declare an interest.

"No, all my disclosures are declared in the normal way," the PM replied.