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Spring Budget 2023 Unveils Comprehensive Childcare Changes for Working Families
Transforming Childcare for Working Families
On March 16, 2023, the Spring Budget unveiled significant changes to childcare, designed to support over a million women returning to the workforce. Chancellor Jeremy Hunt introduced these reforms as a childcare revolution.
Starting April 2024, the funded childcare for eligible 3 to 4-year-olds in England will be extended to children as young as 9 months old. Initially, 15 hours of free care will be offered for 2-year-olds, followed by 15 hours for children from 9 months in September 2024. By September 2025, these hours will increase to 30 per week.
In addition, all schools will be required to provide breakfast and wraparound clubs by September 2026, allowing school-age parents to drop off and pick up their children between 8 am and 6 pm.
Universal credit provisions for childcare will also be improved, with the government covering the upfront payment required to access subsidised childcare for parents entering the workforce or increasing their working hours. The maximum claimable amount will rise to £951 for one child and £1,630 for two children, reflecting an increase of nearly 50%.
Furthermore, the Chancellor announced a £204m funding boost for nurseries offering free childcare, rising to £288m next year. In addition, the minimum staff-to-child ratio in England will be adjusted from 1:4 to 1:5 for two-year-olds, aligning with Scotland’s standards. However, the new ratios will remain optional.
