Budget 2023: Hunt to announce £4bn boost for childcare in England
A £4bn expansion of free childcare for one- and two-year-olds in England is expected to be announced in the budget on Wednesday as part of a wider drive to help people into work and boost growth.
The plan would provide an extra 30 hours a week to parents of one- and two-year olds, and increase funding for the existing programme of free childcare for three year-olds.
The chancellor, Jeremy Hunt, is also planning to increase the hourly rate paid to childcare providers by the government to deliver their existing 30 hours weekly entitlement, a key demand from the sector and some Conservative MPs.
The government will give local authorities funding to start setting up wraparound childcare provision in schools, starting in September 2024, as it tries to match Labour’s pledge to come up with a bold offer on childcare ahead of the next election.
The Guardian revealed last month that the Treasury had commissioned work to look at the costings of free childcare for one- and two-year-olds but Hunt had feared it would prove too expensive. However, it is understood the proposal came back on the table following forecasts that suggested it could help boost growth.
Childcare has emerged as a key political battleground in the runup to the next election, with UK parents facing among the highest costs in the world, meaning that some parents, even those on middle incomes, conclude it is not worth taking on new or extra work.
Officials suggested the measure could be Hunt’s “rabbit from the hat” moment in a statement that was otherwise expected to yield few surprises, with the chancellor downplaying expectations of tax cuts or other big spending commitments.
Rishi Sunak was understood to be taking a final decision on signing off the plan, which
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