Huw Merriman, MP for the Bexhill and Battle constituency, has welcomed today’s budget announcement on the landmark reforms to childcare funding for working parents across the country.
These reforms will remove barriers to work for nearly half a million parents with a child under 3 in England, reduce discrimination against women and benefit the wider economy.
The Chancellor, Jeremy Hunt, announced the introduction of 30 hours of free childcare for every child over the age of 9 months. The new policy, which will be introduced in stages until September 2025, will be worth up to £6,500 a year for working families where both parents work at least 16 hours a week. This extends the existing 3–4-year-old 30 free hours offer from when maternity/paternity leave ends.
The funding paid to nurseries to provide the free childcare hours will also be increased by £204 million from this September rising to £288 million next year, a 30% increase which the sector has lobbied for.
In addition, childcare costs of parents in receipt of Universal Credit who are moving into work or increasing their hours will now be paid upfront for their childcare costs rather than in arrears. The maximum claim will be boosted to £951 for one child and £1,630 for two children – an increase of around 50%.
Schools and local authorities will be also funded to increase the supply of wraparound care for school-aged children which will provide care between 8am and 6pm, further tackling the barriers to work.
Huw Merriman said: “I welcome the Chancellor’s announcement today as it will help local working families of pre-school and school age children.
“The 30 hours free childcare being extended to children from 9 months old will help parents to go back to work sooner without seeing their wages swallowed up in childcare costs. The wraparound care before and after school will remove barriers to full-time work for many more families.
“Funding for nurseries an issue I have worked on for many years. I have visited many local nurseries who do an excellent job, but they have been clear with me that the rates they are paid for the government-funded childcare hours do not cover their costs. The 30% increase in funding rates to nurseries to pay for the free childcare places is therefore very welcome news.”
“Access to affordable, quality childcare is important for my constituents and I am pleased that the Chancellor’s announcement today will have a positive impact across the community.”