Group 10: Administrative arrangements for the provision of funded childcare (Amendments 26, 27, 28)

Part of the debate – in the Senedd at 6:45 pm on 5 December 2018.

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Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 6:45, 5 December 2018

Diolch, Llywydd. We have retabled amendment 26 as this is to help clarify who will be responsible for delivering the childcare offer at the point of national roll-out. The Bill is currently silent on whether it will be the Welsh Government at a central level or our local authorities. While the Bill's regulatory impact assessment mentions that, without the need for legislation, the implementation model delivered by local authorities at the pilot stage could be rolled out nationally. The explanatory memorandum states legislation is needed to create one national application and an eligibility checking system avoiding any differences. Furthermore, the Welsh Government has indicated that its preferred option is to use HMRC as a vehicle to receive and check applications. At Stage 2, I felt that the Minister's response slightly missed the point of this amendment. The Minister noted that there was no gain in restating a duty that local authorities already have, and stated that this existing duty was broader, as it included duties for disabled children and the Welsh language. Whilst I do recognise that, the Bill is still silent about who is responsible for delivering the offer at the national roll-out stage. As a result, the Minister must provide clarity on this matter, as the Bill is meant to be the mechanism by which applications to the childcare offer will be assessed. Currently, HMRC will be responsible for that side of delivering the offer. Therefore, the Minister must confirm whether the Welsh Government or local authorities are to be held ultimately responsible for the administration of this offer.

I also cannot stress enough how concerned we are that the vast majority of the childcare offer will be left to the administrative scheme and is not on the face of the Bill. To do so excludes key details, including ages, hours of the offer, how parents can access the childcare offer, and conditions that providers need to meet. Of grave concern is that the administrative scheme outlined by the Minister will have no legal status and no scrutiny procedure for the National Assembly for Wales.

Both retabled amendments, 27 and 28, cover conditions providers must meet—amendment 28—and how they are to be funded—amendment 27—which are currently left to be determined under the administrative scheme. Some stakeholders who gave evidence to the CYPE committee expressed concern about who would be able to provide the childcare, how payments will be made, and at what hourly rate. The Welsh Local Government Association stated it was necessary to ensure that the roles of local authorities and HMRC are clearly defined in determining post-eligibility arrangements for childcare, so the practical applications of the Bill and the childcare offer are not affected specifically. It was raised that, in England, inconsistencies actually arose after HMRC had checked the eligibility criteria.

Contradictory evidence has been given by the Minister and his officials during Stage 1. While the Minister has asserted that the payment system would be developed separately to the eligibility checking system in the Bill, his own officials stated that Welsh Government would have to work out when local authorities need to know information about eligibility to make their decisions on place allocation for early years education. This suggests that eligibility and post-eligibility arrangements are already being linked. During every stage of this Bill the Minister has repeatedly said that he wants flexibility. However, this need for flexibility, by putting much of the offer's eligibility criteria under the administrative scheme, comes at the cost of fundamental scrutiny powers of the National Assembly for Wales. 

Therefore, it is again welcome that some concessions have been made, but placing the administrative scheme before the CYPE committee in the spring does not mean the same scrutiny processes will be undertaken as it would if it was placed on the face of the Bill. Therefore, more clarity is needed for post-eligibility arrangements to ensure that the new childcare system will operate smoothly. It is clear from the evidence the CYPE committee heard that arranging to pay childcare providers is just as important as ensuring that the application system for the offer is correctly administered. So, I therefore ask Members to support this amendment. Diolch.