The Government has extended the provision of 30 free hours of childcare a week to all working parents of children aged 9 months until they start school – helping more parents take on the work that is right for them.
Reforms also include increasing the hourly rate paid to nurseries, paying Universal Credit claimants their childcare entitlement upfront, rather in arrears and increasing the maximum entitlement to £950 for one child and £1,629 for two children – helping more Universal Credit claimants into work.
Local MP Antony Higginbotham who has been campaigning for changes to childcare said:
I’ve spoken about the cost of childcare with so many parents, and soon to be parents. And it’s something I’ve raised with Government because in a lot of cases, this cost directly plays into the thinking about whether or not going back to work is the best financial decision. And that can’t be right!
The 30 hours of free childcare for children from 9 months old is just brilliant. It’s a landmark change, and one which will benefit so many families within Burnley and Padiham. Not only will it remove a barrier to work, particularly for women, but it will mean that those in work aren’t having their wages swallowed up by childcare costs which makes them question why they bother at all.
But to help deliver this huge reform, childcare providers need to be fully supported too. That’s happening, with a transition period, grants to incentivise people to become childminders and a big increase in the funding being given to providers.
The changes will deliver the biggest shake up in childcare provision since 2017, helping more people across Burnley and Padiham with the cost of living and into work to grow our economy.
Working parents of 2 year olds can access 15 hours per week from April 2024 and from September 2024 all working parents of children aged 9 months to 3 years can access 15 hours per week. From September 2025 all working parents of children aged 9 months to 3 years can access 30 hours of free childcare per week.
The Chancellor’s reforms go further to support the childcare sector.
This includes increasing the hourly rates paid to providers of free childcare to £204 million next year, increasing to £288 million by 2024-25, introducing market reforms to the sector by changing ratios for 2-year-old ratios from 1:4 to 1:5 and allowing childminders to care for more than three children under five if some children are siblings, or their own child.
The package also introduces childminders grant to support childminders with start-up costs, incentivizing more talented childcare providers to the sector. This amounts to £600 for individual applicants and up to £1,200 for applicants who apply through a childminder agency.
This extensive package of reforms breaks down many of the barriers faced by both working parents and the childcare sector.
Commenting, Chancellor of the Exchequer Jeremy Hunt said:
Getting more people into work is vital to achieving our three promises: to halve inflation, grow the economy and reduce debt.
This package will help thousands of parents back into work as we push to grow our economy.
Only a Conservative government can be trusted to get more people into our workforce and give more people the security of their own income.
