Catherine McKinnell, Chair of the Petitions Committee and Member of Parliament for Newcastle North, has raised questions over potential links between Prime Minister Rishi Sunak and a childminder agency that stands to benefit from the Government’s childcare reform. 

Measures outlined in the Budget see prospective childminders offered a bonus of £1,200 – double what they would receive otherwise – if they sign up to the profession through one of six childminder agencies. It has been widely reported that one of those agencies, Koru Kids, counts the Prime Minister’s wife amongst its shareholders, presenting a potential conflict of interest.

The Prime Minister did not declare an interest when questioned on it.

Questioning the Prime Minister at the Liaison Committee, Catherine drew attention to the specific incentive for childminders to sign up with private agencies: “There are only six childcare agencies, and they are advertised on the Government’s website. What conversations have the Government had with those agencies about the proposals?”

The Newcastle North MP went on to ask what “the rationale for the use of taxpayers’ money to give double bonuses to sign with private agencies rather than through the current system?” The Prime Minister responded: “I think it is a reflection of the fact that it is through intermediaries, so there are additional costs.”

Catherine asked whether the Prime Minister needed to declare any potential conflict of interest, but the Prime Minister said that ‘all my disclosures are declared in the normal way.”

Speaking in the House of Commons during the Finance Bill today, Catherine again raised the bonus tied to private agencies. Catherine said: “you could get two for the price of one if you cut out the middleman, so why the Government is doubling bonuses for people that sign up with agencies, I do not know. But the Prime Minister has promised to write to me with these answers, and I eagerly await his response.”

Commenting on the affair, Catherine said:

“Upon entering Downing Street, the Prime Minister spoke about bringing “integrity and accountability” to the office. 

“In that spirit, and in the interest of openness and transparency, it is clear that we need answers on what conversations took place between Ministers, officials and the businesses set to benefit from the announcements made in the Budget, and whether any interests have been properly declared. 

“The PM failed to provide reassurance on this at the Liaison Committee yesterday. It is important that clarity is provided at the earliest opportunity.”