HC Deb 08 June 1998 vol 313 cc706-7
19. Jackie Ballard (Taunton)

What representations she has received about child care costs disregard for carers in receipt of family credit; and if she will make a statement. [42946]

The Parliamentary Under-Secretary of State for Social Security (Mr. Keith Bradley)

The child care disregard is regularly raised in correspondence about family credit and we have acted to improve the help available. From last Monday, we increased the limit on help for families with two or more children from £60 to £100 and extended the age limit for one year. For the future, we have announced our intention to introduce a more generous child care tax credit, which, for a couple earning £23,000 a year with two children, could be worth £45 per week. We have also launched the working benefits campaign, which I know will be successful in improving the take-up of in-work benefits.

Jackie Ballard

I thank the Minister for that reply. What advice would he give to my constituent who is a single parent and works shifts as a nurse at the local hospital? A nanny is the most flexible and appropriate form of child care for her, but the costs of nannies are not disregarded when calculating family credit. Do the Government intend to change that arrangement because a nanny may be the most appropriate form of child care for many people, particularly lone parents? If the reason for not counting the costs is that nannies are not a registered form of child care, will the Government introduce a national registration scheme for nannies?

Mr. Bradley

I am obviously aware of the problems that the hon. Lady raises. We are anxious to ensure that standards of care are maintained, that all child care is quality child care, and that it is accessible and affordable. We shall consider registering nanny agencies, and I shall study the hon. Lady's argument with care.

Mr. Derek Foster (Bishop Auckland)

May I congratulate my right hon. Friend the Secretary of State on her new deal for lone parents? The child care package is crucial to its success. Does the Minister agree, however, that as 40 per cent. of lone parents lack any educational qualification, education and training will be crucial to prevent them from being locked in the poverty pay sector?

Mr. Bradley

I am grateful to my right hon. Friend for raising that point because—as I am sure that he is aware—in the pilot areas we have invested £10 million in training to tackle that problem. We are carefully studying the results of that investment, to ascertain the best way to proceed, and to ensure that that difficulty is properly addressed in the national roll-out.