Anger over ‘free childcare’ because it won’t come into effect for so long
Jeremy Hunt has used his very first Budget to extend free childcare provision to all children under the age of five to get ‘one million women back to work’.
Announcements on energy support and pensions allowances formed part of what has been dubbed the ‘back to work’ spending plan unveiled in the Commons this afternoon.
Among them is a multi-billion pound package to parents set to reduce childcare costs by almost 60%.
But this will not be fully implemented until after the next general election in 2025, and many families will not be eligible.
The chancellor told MPs: ‘I today announce that in eligible households where all adults are working at least 16 hours, we will introduce 30 hours of free childcare not just for three- and four-year-olds, but for every single child over the age of nine months.
‘The 30 hours offer will now start from the moment maternity or paternity leave ends.
Spring budget 2023: Key points
- Seven key takeaways from today’s Budget
- Energy price guarantee to remain at £2,500 for the next three months
- 30 hours of free childcare for every child over the age of 9 months
- Pension changes coming in 2023 – from payment rises to tax cuts
To get the latest from the budget announcement visit Metro.co.uk's Metro's Budget news hub.
‘It is a package worth on average £6,500 every year for a family with a two-year-old child using 35 hours of childcare every week and reduces their childcare costs by nearly 60%.
‘Because it is such a large reform, we will introduce it in stages to ensure there is enough supply in the market.
‘Working parents of two-year-olds will be able to access 15 hours of free care from April 2024, helping around half a million parents.
‘From September 2024, that 15 hours will be extended to all children from 9 months up, meaning a total of nearly one million parents will be eligible.
‘And from September 2025 every single working parent of under 5s will have access to 30 hours free childcare per week.’
There are concerns about whether the chancellor’s plan will actually be delivered.
Initially, the Budget announcement was well received but opposition MPs called for the ‘fine print’ to be checked.
Joeli Brearley, CEO of Pregnant Then Screwed, a group that has been campaigning for investment in the childcare sector for almost a decade, welcomed the move.
But she stressed that the Confederation of British Industry (CBI) has estimated that to do what the government is planning costs £8.9 billion, not £4 billion.
‘We need to see the detail as to how this money is being distributed,’ the founder said.
‘Reports suggest they will also give £288 million to make up the shortfall for the current free hours entitlement for three and four-year-olds – that is not enough.
‘It will not make up that shortfall and we are concerned the quality of early years education will deteriorate, more providers will close and childcare professionals will leave the sector.
‘It is great we will have these new free hours but it will not work if parents cannot secure a place.
‘We are also concerned about increased ratios, there is no evidence that it will cut costs, but there is evidence that it will reduce quality.
‘The first five years of a child’s life are foundational to their future and so we will pay for this further down the line.’
Pressure has been mounting on the government to act on childcare, which is seen to be among the most expensive in the world.
Meanwhile, Labour promised to completely overhaul the British system, labelling it ‘broken’.
Alison McGovern, the shadow employment minister, said that any announcement on childcare needed to be part of a ‘proper reform strategy’.
Angered by the government’s ’empty promises’, parents have taken to Twitter to air their frustration.
Some have warned this is the Conservatives’ way of ‘getting praise for the policy, but shoving the costs onto Labour’.
Others pointed out the ‘free childcare’ is ‘so far away that it hardly feels worth mentioning’.
Ben Harrison, director of the Work Foundation at Lancaster University, a think tank for improving working lives in the UK, stressed working parents and the childcare sector are already under ‘immense pressure’.
‘With inflation in 2023 still in double digits, the reality is these measures will do little in the short-term to enable parents to return to work this year,’ he added.
‘This is particularly crucial for women. Work Foundation research found mothers of young children were nearly three times more likely than fathers to experience severely insecure work, in large part due to unaffordable and inaccessible childcare forcing working mothers to make trade-offs that impact their working lives.
‘And it remains to be seen whether the additional funding and flexibility for the sector will be enough to spur sufficient supply by 2025.
‘We need to see a comprehensive childcare workforce and investment strategy, if the chancellor’s ambitions are to be met.’
Nursery providers have raised concerns about underfunding, complaining about the lack of government investment.
Currently, all families of three and four-years-old qualify for 15 hours of free care a week, over 38 weeks.
To qualify for 30 hours, parents have to earn the equivalent of 16 hours a week at the national minimum or living wage.
Student nurses are just some of the workers who will not be able to benefit from the changes.
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