Part of the debate – in the Senedd at 5:50 pm on 24 September 2019.
May I congratulate Welsh Government for what it's doing with the childcare offer? I've made some quite strong comments about areas such as respecting the referendum result or building an M4 relief road, where Labour hasn't followed its manifesto, but on this you have—indeed, getting it done a year early. I congratulate you on that.
I also noted that the pre-existing offer was quite a lot more focused on public sector provision through schools in Wales, compared to what had developed in England. I really note that the way you've rolled this out seems to be fair to the private and public sectors, and allows them to compete or, where appropriate, work together on equal terms. So, again, I'd like to credit Welsh Government in that respect.
You said you were delighted to tell Assembly Members that the offer had been available across the whole of Wales since April. I just wonder why you are only telling us about it now. Why didn't we have an official announcement in April? I hope he won't mind me saying, I had to rely on the previous Minister Huw Irranca-Davies, who I asked, and he said, 'Oh no, we're doing this. It's all happening across Wales in April,' and no-one seemed to know. I don't understand why you've been hiding your light under a bushel on this issue. I think I actually asked Huw, and Huw said I was allowed to talk about it and it wasn't confidential, it just hadn't been announced.
The roll-out. Sixty per cent of all parents using the offer are below median income; I think that's quite significant. People often seem to have some idea that it's disproportionately the well-off who are benefiting from this. I wonder, Minister, how much of that reflects a cohort, demographic issue that young parents are below their peak earning years, still, quite often. And also, I think we need to recognise that changes in the tax and benefits system at the UK level have tended to penalise this group, relative at least to pensioners, over the last decade or so. It's good to see you're taking up some of the ideas from the Children, Young People and Education Committee. I think, particularly where parents are studying or about to get a job, it is good to give further support.
I wonder in terms of the HMRC versus local authority, firstly, Minister, you and I and a few select colleagues spent quite a lot of time on a Bill committee giving powers to HMRC to share data and to do this work. I just wonder whether our work on that was in vain, and how much, also, has been spent already on that interaction with HMRC that's not being taken forward. I also wonder what the implications are in terms of the application and enforcement of the eligibility requirements. It may be you're more relaxed about the eligibility requirements than you were, and don't mind so much, but it seems to me that HMRC have got this data, and for our tax-free childcare we have to go in every three months and confirm we're still eligible according to the various criteria. Do the local authorities really have the same capabilities as HMRC to know what the earnings are and to enforce if people don't, anymore, meet the eligibility criteria?
Finally, could I just again emphasise the importance of the tax-free childcare? A lot of parents who are taking up this offer will be paying for additional childcare, and I fear that very large numbers of them aren't benefiting from the UK tax-free childcare scheme. I thought one positive of working with HMRC was that people would set up an account and the barrier to them then taking the tax-free childcare as well would be less. That's money that's coming from UK Government that would come into Wales to support the sector, to boost people's incomes that they could then spend within Wales. I just ask the Minister: could you as Welsh Government to do more to promote and make people aware of the availability of this scheme, and that if they set up an account with HMRC, for every £8 they put in it will be topped up and they can pay for £10 of childcare, on top of the offer they're getting from Welsh Government?