Mark Whitehead 13 March 2023

Chancellor to help cut the cost of childcare

Chancellor to help cut the cost of childcare image
Image: Gary L Hider / Shutterstock.com.

The Government will help cut the cost of childcare in Wednesday's budget as part of a drive to assist people into work, chancellor Jeremy Hunt has said.

He said childcare costs were stopping some parents taking a job and the Government could make a ‘big difference’ to reduce them.

Further support would be part of a package of measures to break down barriers to entering the workforce.

The Early Years Alliance welcomed the changes for families on benefits, but urged a wider package of measures to bring down costs for parents.

The current UK-wide £646-a-month per child cap on support for universal credit claimants is expected to be increased by several hundred pounds.

This would be among measures designed to reverse a rise in economic inactivity since COVID including changes to fitness-to-work tests for those with medical conditions.

The budget is also expected to extend the current level of support for energy bills, limiting costs for a typical family to £2,500 a year, for a further three months until June.

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