London Daily

Focus on the big picture.
Tuesday, Aug 18, 2026

Budget 2023: Universal credit claimants to get more childcare cost help

Budget 2023: Universal credit claimants to get more childcare cost help

Parents claiming universal credit are to get more help with childcare costs under government's plans to encourage people back into work.

The chancellor will announce in his Budget on Wednesday that the government will start paying childcare costs up front for those on the benefit.

Charities have warned the current scheme of paying and claiming a refund risks people getting into debt.

Jeremy Hunt says the Budget aims to put the country on a path to growth.

At the moment, people in England, Scotland and Wales who are eligible for the current support pay childcare costs upfront and then claim a refund.

But the support has also been frozen at £646-a-month per child for several years, meaning it has not kept up with the rising cost of care.

Mr Hunt is also expected to announced that the maximum amount people can claim for childcare on universal credit will be increased by several hundred pounds. An exact figure for the increase has not yet been given.

Under the plans set to be announced, benefit claimants will be asked to attend more meetings with work coaches and attend skills bootcamps to help them get back to work.

The government's "back to work" plan will also aim to get over-50s in employment, as well as people with disabilities and those on long-term sickness.

Speaking ahead of the Budget, the chancellor said: "For many people, there are barriers preventing them from moving into work - lack of skills, a disability or health condition, or having been out of the jobs market for an extended period of time.

"I want this back-to-work Budget to break down these barriers and help people find jobs that are right for them.

"We need to plug the skills gaps and give people the qualifications, support and incentives they need to get into work."

Chancellor Jeremy Hunt will announce plans for childcare payments in the Budget on Wednesday


It comes after BBC News previously reported unemployment was almost at its lowest rate since the 1970s after official figures showed around 1.3 million people in the UK were unemployed in December 2022 (an unemployment rate of 3.7%).

The average annual price for full-time nursery childcare in England for a child under-two was more than £14,000 in 2022, according to children's charity Coram.

This means the cost of childcare in the UK is among the most expensive in the world, according to the Organisation for Economic Cooperation and Development (OECD) - taking up nearly 30% of the income of a couple with two young children.

And a survey of 24,000 parents, which was published this month by campaign group Pregnant Then Screwed, found 76% of mothers who pay for childcare feel it no longer makes financial sense for them to work, according to Reuters.

Lauren Fabianski, head of campaigns and communications at Pregnant Then Screwed, added childcare and early years education should be seen as infrastructure.

She said: "Parents cannot work without good quality, affordable childcare. We have to see the government invest in this in order to get more women back into the workplace."

Labour's shadow work and pension's secretary Jonathan Ashworth said: "Over recent months, Labour has outlined welfare reforms to get Britain back to work and now the Tories are following our lead."

Last month, the International Monetary Fund (IMF) warned the UK economy will shrink this year, even though every other major economy will grow.

The Bank of England also predicted a recession in the UK this year - although it is likely to be shorter and not as severe than previously forecast.

Newsletter

Related Articles

0:00
0:00
Close
China’s Lifelike AI Humans Move From Livestreams Into Real-World Service Roles
UK Government Rolls Out £5.8 Billion Regional Investment Programme to Revive High Streets
AstraZeneca Ends Late-Stage Lung Cancer Trial After Data Shows No Survival Benefit
London Stocks Fall for Sixth Day as Bond Yields and Middle East Tensions Weigh on Markets
UK Government Rewrites Planning Rules to Accelerate Housing Near Transport Hubs
UK Wildfires Spread Across Southern England as Met Office Issues Severe Heat Warnings
British Doctors Warn Cancer Care Is at Risk as Hospitals Reject More Than a Quarter of Urgent Referrals
UK Hospitals Suspend Critical Care as Extreme Heat Exposes Infrastructure Failures
Sarah Ferguson Reportedly Retreats to Late Ex-Boyfriend's Swiss Chalet
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Better.com Founder Who Fired 900 Employees on Zoom Is Ousted as CEO
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
AI Manager at San Francisco Store Recommends Firing Human Employee
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Campaigners Press Government to Strengthen Rights for Four Million Gig Workers
Government Considers Higher Private Rents to Spread Asylum Accommodation Across UK
UK Moves to Protect Historic Pubs From Conversion Into Housing and Offices
Nigel Farage Wins Clacton By-Election to Return to House of Commons
British Manufacturers Report Rising Cybersecurity Threats Across Industrial Supply Chains
Royal Navy Increases Monitoring of Russian Ships in UK Waters by 25 Percent
England Adds More Than 350 Medical Training Posts to Strengthen NHS Capacity
NHS Waiting Lists Over 52 Weeks Rise by More Than 11,000 Patients
Brent Crude Near $88 Raises Fresh UK Energy Cost Concerns
UK Treasury Warns Prolonged Strait of Hormuz Disruption Could Cut 2027 Growth to 0.3 Percent
UK Economy Grows 0.4 Percent in Second Quarter as Energy and Inflation Risks Persist
UK Heatwave Triggers Emergency Alert as Government Unveils £65 Million Farm Support Package
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
UK Wildfire Phone Alert Triggers Backlash as Users Switch Off Emergency Warnings
Heathrow Roads Reopen After Burst Water Main Floods Access to Terminals 2 and 3
Former NBA Players Enes Kanter Freedom and Royce White Say They Will Enter 2027 WNBA Draft
Former Cambridge Professor Jason Arday Found Dead Days After Resigning Amid Plagiarism Row
US Appeals Court Rules AI Agent's Website Actions Are Legally Attributed to the User
France's Constitutional Council Blocks Social Media Ban for Children Under 15
Liechtenstein Changes Royal Succession Rules to Allow Women to Inherit the Throne
Women Allege Rape and Sexual Abuse at British Army College for Teenage Recruits
Minnesota: Two independent investigators posed as Muslims (one wearing a burqa) and showed how they could vote in elections without identification.
UK Prime Minister Andy Burnham Takes Regional Tour to Highlight Local Infrastructure and Environmental Problems
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
Bank of England Warns Rising Inflation Could Squeeze UK Household Incomes
UK Government Announces £65 Million Aid Package for Farmers Hit by Severe Drought
UK Economy Grows 0.4% in Second Quarter Despite Energy Market Pressures
UK Issues Emergency Alert as Severe Wildfires Spread Across England and Wales
UK and Finland Discuss European Defence and Continued Support for Ukraine
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
UK Government Deploys Military to Help Fight Wildfires and Bans Disposable Barbecues
UK Records Hottest Day of the Year as Fifth Summer Heatwave Peaks in Southern England
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
×