The new program will provide 30 hours of free child care to working families with children aged nine months to four years, but it will not be implemented until 2024, possibly after the next general election.
Chancellor Jeremy Hunt has defended the rapid implementation of his budget proposal to provide working parents with free childcare, describing it as the “greatest transformation in childcare in my lifetime.”
Families in which all adults work at least 16 hours per week will have access to 30 hours of free childcare per week for children ages nine months to four years old, under the new childcare package.
Previously, the policy only applied to parents of children aged three and four.
However, the program may be enacted after the next general election in 2024.
“This is the most significant change to child care in my lifetime,” Mr. Hunt said.
We’ll need thousands more childcare, schools, and childminders.
We are working as quickly as possible to expand the market’s supply.
In April 2024, 500,000 working parents of two-year-olds will receive 15 hours of free daycare.
From September 2024, the 15-hour deal will help nearly one million parents with nine-month-olds. From September 2025, the complete 30-hour offer will be extended to all children under the age of five.
The chancellor said it was essential because the UK has one of the most expensive childcare systems.
He added, “We are aware that this is a major concern for women in particular, as they face a career-ending catastrophe when their maternity leave ends after nine months and they receive no assistance until their child turns three.
Therefore, I believe that introducing these reforms is the right thing to do for many women. And we are introducing them as rapidly as possible to eliminate these barriers to employment.
Rachel Reeves, Labour’s shadow chancellor, applauded the changes and told, “As a working mother myself, I know how important it is to have affordable, flexible childcare to meet the needs of working parents.
She continued, “What I would like to know is why the government has been so slow?
This Conservative government has been in power for thirteen years, and it is only now that they are beginning to recognize the importance of childcare, not only for the development of children but also for our economic success.
Mr. Hunt also defended his proposed changes to pensions, namely the elimination of the lifetime pensions allowance. Which will eliminate the £1 million cap after which employees must pay tax on their pension funds.
Labour called it “a tax cut for the wealthy by the Conservatives,” saying it would only help the top 1%. And stated that they would oppose it in Parliament, urging a vote on Tuesday.
The chancellor claimed it would reduce record-high waiting lists by addressing the “huge problem” of doctors leaving the NHS.
Mr. Hunt said the budget helps with the cost of living issue by freezing the £2,500 energy price limit. While also addressing “the long-term issues facing the economy… removing the barriers that prevent people from working.”
Ms. Reeves accused the government of stealing from Labour’s playbook, stating that Labour had advocated for a freeze on utility bills, modifications to prepayment meter charges, and an enhanced childcare package.
But while she applauded the adoption of measures supported by her party. She told, “Yesterday’s budget was supposed to promote growth.” However, the Office of Budget Responsibility reduced its growth projections.
We badly need economic growth to raise living standards, lower taxes, and fund public services.
Both the SNP and the Liberal Democrats stated that the energy measures were insufficient and demanded that the government reduce household energy bills.
This afternoon, MPs will continue debating the budget in the House of Commons, and Mr. Hunt’s backbenchers may be dissatisfied with his decision to maintain the scheduled rise in corporation tax from 19% to 25% without offering additional tax cuts as some Conservative MPs demanded.
Former government ministers Priti Patel, Jacob Rees-Mogg, and Ranil Jayawardena all urged the chancellor to reconsider his tax decisions within the next few months.
