Following the Budget today, Greg Smith MP writes on new childcare policies:
The Budget brought a number of welcome measures, but none as significant as the sea change in the way families with young children are supported with the cost of childcare.
With three young children, two of whom are below school age, my wife and I fully understand the enormous cost of childcare. We are lucky that we have found a superb childminder locally, as well as an outstanding pre-school. But it is clear supply locally does not match demand and where there is supply, it quickly becomes one of the largest household bills.
Since 2010, the Conservatives in government have already introduced 30 hours of free childcare a week for 3 and 4 year olds, but it is clear parents of 1 and 2 year olds, particularly mothers, struggle to go back to work after maternity leave without affordable childcare. Indeed, as the Chancellor referenced in his Budget speech almost half of non-working mothers said they would prefer to work if they could arrange suitable childcare. That is why it was so important for the Chancellor to announce 30 hours of funded childcare a week for every child over the age of 9 months, with support being phased in until every single eligible working parent of under 5s gets this support by September 2025.
The government will also pay the childcare costs of parents on Universal Credit moving into work or increasing their hours upfront, rather than in arrears – removing a major barrier to work for those who are on benefits. The maximum they can claim will also be boosted to £951 for one child and £1,630 for two children – an increase of around 50%.
I have heard a level of frustration that these measures are being phased – to declare a personal interest with my youngest turning 3 just before he would be eligible for this funding, I share that frustration. But there is a reality that this scale of increased expenditure is only affordable to the national purse if phase in and that such a huge injection of cash into the system will only work if supply is there. So on supply, the government is piloting incentive payments of £600 for childminders who sign up to the profession, rising to £1,200 for those who join through an agency and offsetting pressures felt by existing nurseries providing childcare under the 30 hours offer by £204m from this September rising to £288 million next year. Providers also now have more flexibility with minimum staff-to-child ratios changing from 1:4 to 1:5 for two-year-olds.
For parents of school age children, the government will fund schools and local authorities to increase supply of wraparound care so all school age parents can drop their children off between 8am and 6pmby September 2026.
So, real action to incentivise the increase in supply of childcare and real steps to make childcare affordable for families with children over 9 months old. This is a policy I am proud to support and know will make a huge difference to families across Buckinghamshire.
