Commentary on provisions of Act Section 2: Discharging the section 1(1) duty
Subsection (1) enables the Secretary of State to make regulations ("extended entitlement regulations") detailing how she proposes to discharge the new duty to secure the equivalent of 30 hours per week of free childcare for working parents.
	Subsection (2) sets out a non‐exhaustive list of what extended entitlement regulations may provide for.
	In particular, extended entitlement regulations may require English local authorities to secure free childcare for qualifying children of working parents in their area and, in doing so, to have regard to any guidance given by the Secretary of State (subsection (2)(a) and (k)). It is the Secretary of State’s intention to discharge her new duty through local authorities and to make regulations to this effect, building on the delivery mechanism for the existing entitlement to 15 hours of free childcare for all three‐ and four‐year‐olds under section 7 of the Childcare Act 2006.
	Extended entitlement regulations may:
specify descriptions of the type of childcare that is to be made available (subsection (2)(a));
set out how much childcare is to be made available and the times at which, and periods over which, that childcare to be made available (subsection (2)(b)); and
make provision about the terms of any arrangements between local authorities and providers of childcare (subsection (2)(c)). The Secretary of State may, for example, impose a requirement that any contractual arrangements between a local authority and a childcare provider must include a clause which would enable the local authority to terminate the arrangements in particular circumstances.
	In circumstances where a local authority fails to secure free childcare for working parents in accordance with any requirements imposed on it by extended entitlement regulations, then it will be open to the Secretary of State to intervene to secure proper performance of that function (see subsection (8)) mirroring powers under the Childcare Act 2006.
	Subsection (2)(e) specifies that extended entitlement regulations may make provision requiring information or documents to be provided to the Secretary of State, HMRC or an English local authority. Regulations may, for example, require parents to provide information relating to their employment status or documents such as their child’s birth certificate, for the purpose of confirming the child’s eligibility for free childcare.
	Subsection (2)(f) envisages that provision would be made for the purpose of enabling any person, for example an English local authority, to check whether a child is a qualifying child of working parents.
	Subsection (2)(g) specifies that regulations may make provision about the sharing of data by a Minister of the Crown, HMRC or an English local authority for the purpose of eligibility checking and, by virtue of subsection (2)(h), extended entitlement regulations may also provide for criminal offences in connection with the unauthorised, onward disclosure of information obtained for that purpose. The intention is to replicate the criminal offence contained in section 13B of the Childcare Act 2006, which makes unlawful disclosure of information supplied for use in determining eligibility of children for free early years provision under section 7 of that Act a criminal offence. In accordance with subsection (4), the maximum penalty which may attach to any new criminal offence is a two year term of imprisonment (whether or not accompanied by a fine).
	There may be instances where parents are not satisfied with a decision as to their child’s eligibility for the extended entitlement. Subsection (2)(i) enables extended entitlement regulations to make provision for reviews of, or appeals to the First‐tier Tribunal against, determinations relating to a child’s eligibility. The Government intends to exercise this power so as to provide a right of appeal against a decision that a declaration of eligibility made by a parent is invalid.
	Subsection (2)(j) makes clear that extended entitlement regulations may provide for the imposition of financial penalties on parents in connection with false or misleading statements made, or information provided, in connection with a determination of a child’s eligibility for the extended entitlement and dishonest conduct in connection with the process of making this determination. If regulations are made which envisage the imposition of a financial penalty, then subsection (5) sets out that the maximum amount of any penalty that can be levied is £3000. Subsection (5) also specifies that a person who receives a financial penalty must be able to require a review of the imposition of the penalty and/or its amount with an onward right of appeal to the First-tier Tribunal.