Chancellor Jeremy Hunt is expected to increase childcare payments for the poorest families by nearly 50% in is Spring Budget – are you eligible?

Parents with a low income should soon be offered almost 50% more help with childcare costs.

Chancellor Jeremy Hunt is expected to use his Spring Budget to increase childcare payments for families on Universal Credit (UC), in an attempt to help with the cost of living.

The amount parents on UC can claim back on childcare will rise from £646 for a single child to £950 (£304 more per month) and from £1,108 for two children to £1,630 (£522 more per month)

This will be the first increase for almost two decades.

• New plan announced for Free school meals

Upfront payments

Also, for the first time, families on Universal Credit will be offered upfront payments rather than asked to pay for their childcare, then claim it back later.

It comes as pressure mounts on the government after it was reported that childcare in England is to be among the most expensive in the world.

The average cost for a part-time nursery place for a two-year-old has reportedly leapt to £1,250 per month, or £15,000 per year, children’s charity Coram said.

High costs are said to be 'freezing parents out of work' and gaps in availability are 'leaving disadvantaged children at risk of missing out', according to the report by Coram Family.

The government says it has spent £20bn in the past five years to help families with childcare costs.

When is the Spring budget and what are we expecting?

The budget will take place on 15 March 2023. The previous one was held last November.

What happens on budget day?

Chancellor Jeremy Hunt will deliver the budget statement in the House of Commons.

The announcement usually starts at 12.30pm – directly after Prime Minister's Questions – and lasts about an hour.

Labour leader Sir Keir Starmer will give his response as soon as the speech is over.

Before the announcement, the chancellor poses for the press with the red despatch box containing the budget papers.

What is included in the budget?

The budget will lay out the government's plans for raising and lowering taxes.

The chancellor will also speak on government plans for public spending, including on schools, health and defence.

What are the predictions for what will be in this budget?

Energy prices are likely to be high on the budget agenda.

Support for energy bills from the government is expected to continue for three months from April.

It has been reported the chancellor will cancel a reduction in support that would have seen typical annual bills rise from £2,500 to £3,000 per year.

Will free school meals be included?

Currently, there are no plans to roll out free school meals nationwide. The government resisted pressure to widen access to free meals in its November budget.

However, Zarah Sultana MP has proposed the Free School Meal for All Bill in Parliament.

You can support the Bill by asking your MP to back it – here's how.

Why is there a budget every year?

There needs to be a budget in every financial year because income tax and corporation tax are annual taxes which have to be renewed by legislation each year. The last one was held in November.

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