{"id":520,"date":"2023-03-15T08:18:29","date_gmt":"2023-03-15T08:18:29","guid":{"rendered":"https:\/\/260web.com\/news\/budget-jeremy-hunt-to-expand-free-childcare-to-one-and-two-year-olds\/"},"modified":"2023-03-15T08:18:29","modified_gmt":"2023-03-15T08:18:29","slug":"budget-jeremy-hunt-to-expand-free-childcare-to-one-and-two-year-olds","status":"publish","type":"post","link":"https:\/\/260web.com\/news\/budget-jeremy-hunt-to-expand-free-childcare-to-one-and-two-year-olds\/","title":{"rendered":"Budget: Jeremy Hunt to expand free childcare to one and two-year-olds"},"content":{"rendered":"

Budget: Jeremy Hunt to expand free childcare to one and two-year-olds<\/p>\n

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\"Children<\/picture><\/span>Getty Images<\/span><\/div>\n<\/figure>\n<\/div>\n
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By Ione Wells & Faisal Islam & Becky Morton<\/div>\n
BBC News<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Free childcare for working parents in England is expected to be expanded in Wednesday’s Budget to cover one and two-year-olds.<\/b><\/p>\n<\/div>\n<\/div>\n

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Currently, working parents with three and four-year-olds are eligible for 30 hours of free childcare per week. <\/p>\n<\/div>\n<\/div>\n

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The plans are part of a government drive to encourage more people back to work to boost economic growth. <\/p>\n<\/div>\n<\/div>\n

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Equivalent funding is expected to be announced for Wales, Scotland and Northern Ireland. <\/p>\n<\/div>\n<\/div>\n

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The Treasury is not formally commenting ahead of the Budget. <\/p>\n<\/div>\n<\/div>\n

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However it has not denied suggestions, first reported by the Guardian, that the hourly rate paid to childcare providers by the government will also be increased – and that local authorities will be given funding to start setting up wraparound childcare provision in schools from September 2024. <\/p>\n<\/div>\n<\/div>\n

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The BBC has been told the current scheme for three and four-year-olds will be extended to cover one and two-year-olds. <\/p>\n<\/div>\n<\/div>\n

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  • How will the Budget help with childcare costs?<\/li>\n
  • When is the Budget and what could it mean for my money?<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n
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    Childcare costs in the UK are among the highest in the world and the government has been under pressure, including from some of its own MPs, to provide more help for parents. <\/p>\n<\/div>\n<\/div>\n

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    The rising cost of childcare has been widely seen as a deterrent for some parents to go back to work or work full time. <\/p>\n<\/div>\n<\/div>\n

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    The extension of free childcare has been lobbied for by business group the CBI, which calculates that while it will cost several billion pounds, it could raise up to \u00a310bn in further revenue by increasing the number of parents able to work.<\/p>\n<\/div>\n<\/div>\n

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    The Guardian also reported that the government could introduce changes to the staff-to-child ratios for two-year-olds in childcare – moving from one carer for every four children to 1:5 to align with Scotland, which the Treasury also has not denied. <\/p>\n<\/div>\n<\/div>\n

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    Supporters of the idea say it could help cut costs for parents. <\/p>\n<\/div>\n<\/div>\n

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    However, the Early Years Alliance, which represents around 14,000 childcare providers in England, said relaxing ratios risked “severely compromising the safety and quality of care” and putting more pressure on the workforce during “a severe staffing crisis”.<\/p>\n<\/div>\n<\/div>\n

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    The organisation’s chief executive, Neil Leitch, said reports of more spending on the sector “appear positive” but “the devil is in the detail”. <\/p>\n<\/div>\n<\/div>\n

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    He said the government must ensure funding meets the sharply rising costs of delivering places. <\/p>\n<\/div>\n<\/div>\n

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    Meanwhile, the government will also confirm that energy bill support will continue at current levels for a further three months. <\/p>\n<\/div>\n<\/div>\n

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    Currently, the government limits the energy bill for a typical household to \u00a32,500 a year but this had been due to rise to \u00a33,000 on 1 April.<\/p>\n<\/div>\n<\/div>\n

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    The chancellor is expected to resist calls from some Tory MPs to cut taxes. <\/p>\n<\/div>\n<\/div>\n

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    With prices continuing to rise, he has privately been telling them: “The best tax cut right now is a cut in inflation.”<\/p>\n<\/div>\n<\/div>\n

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    A planned rise in corporation tax, from 19% to 25%, is due to come in from 1 April. <\/p>\n<\/div>\n<\/div>\n

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    However, under plans to be announced in the Budget, businesses will be able to mitigate this increase with a new system of capital allowances. <\/p>\n<\/div>\n<\/div>\n

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    Other measures expected to be announced by Chancellor Jeremy Hunt include: <\/p>\n<\/div>\n<\/div>\n

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