London Daily

Focus on the big picture.
Tuesday, Sep 08, 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
Counter-Terrorism Police Lead Salford Investigation After Two Teenagers Charged
UK Rejects Financial Reparations for Transatlantic Slavery
UK and Egypt Step Up Diplomacy Over Escalating West Bank Tensions
UK Pauses Council Reorganisation Across Four English Counties
Jaguar Land Rover Plans 4,000 Job Cuts in Major UK Restructuring
UK Unveils Planning and Regulatory Overhaul to Speed Infrastructure and Economic Growth
University of Bristol Opens £500 Million Innovation Campus
Families Give Evidence to Independent Review of Sussex Maternity Failures
Sweden Confirms Deportation of 458 British Citizens Over Post-Brexit Residency Rules
UK Launches £3 Million Challenge for Long-Duration Energy Storage
Reform UK Proposes £100 Billion in Spending Cuts and Brownfield Deregulation
Andy Burnham Warns Macron That EU Procurement Rules Could Hurt British Steel
Andy Burnham Faces Major Decision on Future North Sea Oil and Gas Drilling
SEND Support in England Projected to Reach One in 10 Pupils
England’s Housing Courts Struggle With Surge in No-Fault Eviction Cases
Violent Clashes Erupt in Portsmouth During Protest Against Asylum Processing
Three-Quarters of NHS Emergency Staff Report Regular Violence or Aggression
UK Considers Converting Female Prison Space for Male Inmates as Overcrowding Worsens
UK House Prices Record First Annual Decline in Nearly Three Years
UK Government Reassesses Policy Toward Israel Amid Calls for Diplomatic Shift
Reform UK Faces Police Scrutiny Over Alleged Foreign Donations Scheme
University of Bristol Opens £500 Million Temple Quarter Enterprise Campus
Online Bookmakers Accused of Privacy Breaches Through Cookie Consent Practices
Health Campaigners Urge UK Government to Abandon U.S. Pharmaceutical Agreement
Three-Quarters of UK A&E Staff Report Regular Violence or Aggression
Far-Right Demonstrations Target Portsmouth as Small-Boat Crossings Fuel Tensions
UK Records Hottest Summer on Record After Severe Heatwaves
UK Travellers Face Renewed EU Border Delays as Temporary Flexibility Ends
UK Rejects Calls to Pause AI Data Centre Expansion Despite Energy Concerns
UK Defence Figures Push for 3% Spending Target Amid Falklands Concerns
England Faces Rising Financial Pressure as Special Educational Needs Plans Surge
Metropolitan Police Consider Reform UK Probe Over Overseas Donations
Keir Starmer to Leave Parliament, Triggering By-Election
UK Treasury Weighs Windfall Taxes on Banks and Oil Companies Amid Bond Market Turmoil
Jaguar Land Rover to Cut Thousands of Jobs as UK Government Rules Out Bailout
OpenAI Unveils GPT-6 and Says: "We May Already Have Reached AGI"
Congressman Accused Andrew of Sex Crimes in the United States
Donald Trump: "I'm Glad Harry and Meghan Left the United States"
Spicy Food Is Linked to Lower Death Risk — but It Is Not a Miracle Cure
AfD Enters Saxony-Anhalt Election at 41% in Historic Test for German Politics
Gen Z Turns to Investing as America's First-Home Dream Moves Further Out of Reach
Thousands Join London March Calling for Tighter Abortion Restrictions
Institute of Directors Says Tax and Regulatory Uncertainty Still Weighs on UK Investment
Bank of England Faces Rate Dilemma as Weak Growth and Persistent Inflation Raise Stagflation Risks
Masked Anti-Immigration Protesters Block Roads to Port of Dover
Prime Minister Andy Burnham Sets Out Devolution and Re-Industrialisation Agenda
British Chambers of Commerce Forecasts UK Growth of Just 1% Through 2027
UK Government Advances Bill to Tighten Rules on Overseas Political Donations
Nigel Farage Faces Scrutiny Over Alleged Reform UK Donation-Law Evasion
Thousands Join Anti-Abortion March Through Central London
×