4. Mr Gaston asked the Minister of Finance to outline the Barnett consequentials for 2024-25 arising from enhanced childcare provision in England. (AQO 783/22-27)

The Executive received £57·2 million of Barnett consequentials for 2024-25, following the announcement in the spring Budget of the expansion of the 30 free hours of childcare scheme in England. Barnett consequentials are, of course, unhypothecated, meaning that they do not have to be used for the purposes for which they were issued but, rather, in line with the Executive's priorities. The Executive as a whole recognise the importance of delivering for children and young people in our society. That is reflected in the fact that the Executive invested an additional £25 million this year to progress measures supporting early learning and childcare initiatives, including measures to stabilise the sector. That funding is already making a difference through the new childcare subsidy scheme, which had almost 10,000 children signed up to it within just two weeks of it opening. The families of those children will see their childcare Bills reduced from September 2024. Despite the significant financial pressures on the Executive's Budget, we are committed to making childcare more affordable for families. That was reflected again in the draft Programme for Government that was published last week.

Thank you. Twenty-five million pounds is some way short of the £57·2 million that, the Minister told us, we received, which means that £32 million is being spent elsewhere. We see much chest beating about what we are doing for childcare: why are parents being short-changed, and why is that money being diverted elsewhere?

The Member will be aware of the significant financial pressures facing the Executive's Budget that I outlined to the Chamber last week. Departments project pressures of £767 million for this year. As I mentioned in my previous answer, Barnett consequentials that come across for any issue are unhypothecated and have to be utilised by the Executive in the way that they decide.

The interim package of measures that we have put in place is designed to inform the Executive's early learning and childcare strategy, which has long been in development. It is also designed to support the sector. I am aware from conversations with the Education Minister that a ramping up in capital investment is required to support the expansion of the 22·5 hours per week preschool provision, as well as to ensure that the childcare sector is able to expand its support. Certainly, despite their constrained Budget, the Executive have shown that we prioritise childcare by the £25 million that we held centrally and for which the Education Minister subsequently brought forward proposals. We seek to build on that, and I am sure that we will invest further in it.

Ar an ábhar chéanna, a Aire,

[Translation: On the same point, Minister,]

what other Barnett consequentials do you expect our power-sharing Executive to receive?

We know that we will receive additional resource Barnett consequentials in-year, but the total of those will not be confirmed until we get our Westminster Supplementary Estimates, which is usually in January. Given the pressures that we face, I asked my officials to engage in discussions with Treasury on the likely direction of travel for Barnett consequentials. The final level of consequentials is, obviously, dependent on what additional funding Whitehall Departments get and if they have an ability to deliver savings. There is some degree of uncertainty, but it is my intention to allocate an additional £500 million.

Part of the reason why childcare costs here have spiralled out of control is the failure to keep pace with spending across the water on childcare support. Will you guarantee, now that it is a priority in the Programme for Government, that you, as Finance Minister, will prioritise childcare and that, when the relevant consequentials come along, they will go to where they are most needed, which is childcare? Failure in this place has led to out-of-control costs.

I thank the Member for her question. We showed how childcare was a priority for the Executive, because, despite the really challenging budgetary situation that we found ourselves in, we still ring-fenced money specifically for childcare. Childcare is one of the priorities in the draft Programme for Government, and, as the Member will be aware and as all of us would hope, the Budget will be aligned to priorities in the Programme for Government.

When Barnett consequentials come across, Ministers will often make the case that they should be used for the purposes for which they were allocated in England. The whole point of devolved government, however, is that we make decisions that align with our own interests. Childcare is a priority, which is reflected in the Programme for Government and in the fact that there was a ring-fenced pot of money for it in the Budget. Certainly, it is something in which I intend to invest in future.

As part of a broader childcare strategy, is the Minister considering introducing support through the rates system for early years and childcare settings, building on the experience in Scotland and Wales?

I thank the Member for her question. That is, obviously, something that has been considered. The intention of any support that we put towards the childcare sector is to make childcare more affordable for parents and families. The analysis is that the amount of money that would go towards individual providers may not make a significant contribution to a reduction in fees for parents. However, I am open to further consideration of the idea, and, were the Education Minister to make any policy proposals in that space, I would be open to considering them.