The Government currently invests GBP5.2 billion annually in early education and childcare, set to rise to GBP6.4 billion in the next Parliament with the implementation of the tax-free childcare scheme and the roll-out of Universal Credit. The stated aims of this investment are three-fold: (i) to promote child development for all children; (ii) to narrow the gap in attainment between the most disadvantaged children and their better off peers; and (iii) to enable parents to work. The Committee’s evidence suggests that there is a fourth implicit aim, strongly supported by the witnesses, and that is poverty reduction: in the short term, through support for childcare costs, enabling parents to work; in the longer term, through the provision of high quality early education, enabling children from disadvantaged backgrounds to achieve their potential and break the cycle of inter-generational poverty. Government policy supports childcare in three main ways: through the free early education entitlement, consisting of 15 hours of free early education for 38 weeks of the year for all three and four year-olds, and the 40% most disadvantaged two year-olds; through the childcare element of Working Tax Credits, soon to be replaced by Universal Credit; and through employer-supported childcare vouchers, soon to be replaced by the tax-free childcare scheme. Many of the witnesses acknowledged the trade-offs inherent in a policy which seeks on the one hand to promote child development, and on the other hand to facilitate parental employment. For example, cheap, low-quality childcare might help parents to work, but it would not meet the Government’s child development objectives. There is therefore an inherent tension which must be managed; hard choices have to be made.