Budget 2023: Key announcements for children and young people
Fiona Simpson
Wednesday, March 15, 2023
Childcare reforms and support for struggling families are among a raft of measures announced by Chancellor of the Exchequer Jeremy Hunt in his 2023 Budget.
Hunt told the House of Commons today (15 March) that his plans is based on “the Prime Minister’s five priorities for our country”.
These include reducing inflation, reducing debt and economic growth.
The Chancellor said: “Britain is on a lasting path to growth with a revolution in childcare support, the biggest ever employment package and the best investment incentives in Europe.”
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Budget 2023: Hunt announces expansion of funded childcare hours
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Budget 2023: Government confirms controversial relaxation of childcare ratios
CYP Now lays out Hunt’s key announcements impacting the children and young people’s sector:
Childcare
A raft of childcare reforms have been announced in a bid to increase the UK’s workforce.
Announcements include offering all eligible working parents 30 hours of funded childcare for children over nine months old by 2025 and an increase in the hourly rate paid to childcare providers.
Incentive payments of £600 will be offered to childminders who join the profession, increasing to £1,200 for those who join through an agency.
Parents on universal credit will see an uplift in childcare allowances, which will be paid up front rather than in arrears, of £951 for one child and £1,630 for two children.
Local authorities and schools will receive a share of £268m funding to provide wraparound care from 8am to 6pm by 2025/26.
Staff:child ratios in childcare settings will change from 1:4 to 1:5 for two-year-olds in line with the Scottish system.
Social care
The government is increasing the amount of income tax relief available to foster carers and shared lives carers, including kinship carers, staying put carers and those with parent and child arrangements. The threshold of income at which qualifying carers begin paying tax on care income will be increased to £18,140 per year plus £375 to £450 per person cared for per week for 2023/24.
An additional £8.1 million in each of the next two years will be invested to expand the Staying Close programme to around half of local authorities by March 2025 in a bid to “help young people leaving residential care into employment”, Hunt says.
Special educational needs and disabilities
The Department for Education will invest an additional £3m over the next two years to pilot an expansion of the Supported Internships programme to young people entitled to special educational needs support who do not have an education, health and care plan.
Youth employment
Sanctions will be “applied more rigorously to universal credit claimants who do not meet job search or accept a reasonable job offer”, Hunt said.
The government will extend the Youth Offer, which provides mandatory tailored support for 16- to 24-year-olds, to April 2028.
Health
A £10m grant fund will be made for suicide prevention organisations in England in 2023/24 and 2024/25 to support people experiencing suicidal thoughts or approaching a mental health crisis.
Cost-of-living crisis
The government's energy price guarantee will remain at £2,500 for the next three months.
The Chancellor pledged £100m to support "thousands" of local charities and community organisations working to support vulnerable families as well as a £63m fund "to keep public leisure centres and pools afloat" during the cost-of-living crisis.
