London Daily

Focus on the big picture.
Thursday, Jan 22, 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
Prince William to Make Official Visit to Saudi Arabia in February
Prince Harry Breaks Down in London Court, Says UK Tabloids Have Made Meghan Markle’s Life ‘Absolute Misery’
Malin + Goetz UK Business Enters Administration, All Stores Close
EU and UK Reject Trump’s Greenland-Linked Tariff Threats and Pledge Unified Response
UK Deepfake Crackdown Puts Intense Pressure on Musk’s Grok AI After Surge in Non-Consensual Explicit Images
Prince Harry Becomes Emotional in London Court, Invokes Memory of Princess Diana in Testimony Against UK Tabloids
UK Inflation Rises Unexpectedly but Interest Rate Cuts Still Seen as Likely
AI vs Work: The Battle Over Who Controls the Future of Labor
Buying an Ally’s Territory: Strategic Genius or Geopolitical Breakdown?
AI Everywhere: Power, Money, War, and the Race to Control the Future
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Arctic Power Grab: Security Chessboard or Climate Crime Scene?
Starmer Steps Back from Trump’s ‘Board of Peace’ Amid Strained US–UK Relations
Prince Harry’s Lawyer Tells UK Court Daily Mail Was Complicit in Unlawful Privacy Invasions
UK Government Approves China’s ‘Mega Embassy’ in London Amid Debate Over Security and Diplomacy
Trump Cites UK’s Chagos Islands Sovereignty Shift as Justification for Pursuing Greenland Acquisition
UK Government Weighs Australia-Style Social Media Ban for Under-Sixteens Amid Rising Concern Over Online Harm
Trump Aides Say U.S. Has Discussed Offering Asylum to British Jews Amid Growing Antisemitism Concerns
UK Seeks Diplomatic De-escalation with Trump Over Greenland Tariff Threat
Prince Harry Returns to London as High Court Trial Begins Over Alleged Illegal Tabloid Snooping
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
×