LIFE

Parents of babies to be given 30 hours FREE childcare a week

Last modified on Wednesday 15 March 2023

The announcement was made by Chancellor Jeremy Hunt in today's Budget and is be the first time ever children so young have been included in any free childcare scheme

Working parents of children aged 9 months and over will be offered 30 hours FREE childcare a week, under a new childcare policy announced in today's Budget.

It's the first time babies have been included in any sort of free childcare scheme.

Families with children aged 2 and under do not currently receive any support for the years between when parental leave ends and before free nursery hours are offered for 3 and 4 year olds.

But now, Mr Hunt said the childcare help will begin 'From the moment paternity or maternity care ends' – reducing families' childcare costs by nearly 60%.

What did Jeremy Hunt say?

Speaking on Wednesday 15 March, Mr Hunt said: 'We have one of the most expensive childcare systems in the world.

'For many women a career break becomes a career end.'

‘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 3 and 4 year olds, but for every single child over the age of 9 months.

‘It is a package worth on average £6,500 every year for a family with a 2 year old child using 35 hours of childcare every week and reduces their childcare costs by nearly 60%.

'Working parents of 2 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.’

When will this new policy take effect?

This new policy will be introduced in stages to 'ensure there is enough supply.'

Two year olds will get 15 hours care from April 2024.

From September 2024, 15 hours will be available for all children aged 9 months up.

From September 2025, every working parent of under 5s will have 30 hours free childcare per week.

Chancellor Jeremy Hunt has made the move in an effort to help millions of families and help parents get back to work, to boost the economy.

How much will this cost the government?

The policy is set to cost £4billion – and the Treasury had reportedly initially thought it would be too expensive to announce at today's statement.

Under Mr Hunt's childcare plan, the hourly rate paid to childcare providers by the government to deliver their existing 30 hours weekly entitlement for 3 and 4 year olds is set to be increased, too.

Who is eligible for the free childcare for babies aged 9 months plus?

The new system is set to replicate the means-testing of the existing childcare offer for 3 and 4 year olds – meaning that it's for working parents.

Higher earners (over 100k) won't be able to access it in full.

What other childcare policies were announced?

Child-to-staff ratio

The number of children per staff in nurseries will rise. This could reduce childcare costs because nurseries will have more income per staff member. This move should see families save £40 per week, or £480 per year, reports The Sun .

You can read more about childcare ratios here.

Up to 50% more help with childcare costs

The Chancellor announced more childcare help for low-income families, offering 50% more help with childcare costs. Mr Hunt increased childcare payments for families on Universal Credit (UC) , in an attempt to help with the cost of living.

One-off £600 payment to childcare workers

To encourage workers into the childcare sector, the government has offered a £600 one-off sign up bonus to childcare workers in Wednesday's budget.

The £600 bonus will be offered – as part of a pilot scheme – to people to encourage them to become childcare workers. This is good news for families struggling to get a place due to nurseries being short staffed.

Wraparound care

Mr Hunt wants to increase the supply of wraparound care so all school-age parents can drop their children off from 8am to 6pm, by September 2026.

Mr Hunt said: 'Todays reforms will increase childcare availability and reduce costs.

'I don't want any parent with a child under 5 to be prevented from working if they want to.'

What free childcare is currently offered?

According to children’s charity Coram, the average annual price for full-time nursery childcare in England for a child under two was more than 14,000 pounds in 2022.

That makes Britain’s childcare among the most expensive in the world, according to the Organisation for Economic Co-operation and Development (OECD). However parents do currently get between 15 and 30 hours free childcare for children aged 2 and over.

Currently all families of 3 and 4 year olds qualify for 15 hours of free childcare a week, spread over 38 weeks. Households can qualify for 30 hours of free childcare a week if parents earn the equivalent of 16 hours a week at the national minimum or living wage.

The current childcare offer is as follows:

1. Funded education and childcare for 2 year olds

If you live in England, this funded childcare is available from the term after your child’s second birthday.

It covers 15 hours a week for 38 weeks of the year. You're only eligible to claim if you receive certain benefits, your child is disabled or looked after.

If you live in Scotland and your child is under 2, you’re entitled up to 1,140 hours per year if you’re receiving certain benefits (including in-work benefits) or children who are looked after.

If you live in Wales you’re entitled to 12.5 hours a week for 39 weeks a year for 2 to 3 year olds in Flying Start areas (geographic areas which are deprived).

2. 15 hours free childcare for 3 and 4 year olds

If your child is aged 3 or 4 and you live in England, they are entitled to 15 hours of free early years education or childcare a week. This is for everyone.

This can usually only be taken during term time — so 38 weeks a year — and works out as 570 free hours every year. It should be deducted off your childcare bill the term after your child has turned 3.

If you live in Scotland from August 2021, all 3 and 4 year olds are entitled to 1,140 hours a year. (30 hours a week during term time, or 22 hours spread across the year).

If you live in Wales you’re entitled to 10 hours free childcare a week. This goes up to 12.5 hours a week for three-year-olds in Flying Start areas.

3. 30 hours free childcare for 3 and 4 year olds

As above, this is available if your children are aged 3 and 4 and you live in England or Scotland. However there are certain conditions you need to meet to claim the 30 hours free childcare, including working at least 16 hours a week.

Find out more about 30 hours free childcare .

Again, If you live in Scotland from August 2021, all 3 and 4 year olds are entitled to 1,140 hours a year. (30 hours a week during term time, or 22 hours spread across the year).

If you live in Wales and are in work, you'll be entitled to 30 hours per week for 48 weeks a year. At the moment this is being piloted in some local areas.

What else was announced in today's budget?

From energy bills to childcare costs, the Spring Budget impacts families in several areas of life

It came the same day teachers are walking out across England and Wales in strike action over pay.

We’ve rounded up how the budget affects YOU, your family and your household finances. You can read more here.

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