London Daily

Focus on the big picture.
Friday, Aug 15, 2025

Childcare: I'll cut costs to boost workforce, says Chancellor Jeremy Hunt

Childcare: I'll cut costs to boost workforce, says Chancellor Jeremy Hunt

The chancellor has vowed to help reduce the cost of childcare at Wednesday's Budget as part of a wider drive to help people into work.

Jeremy Hunt told the BBC that costs were stopping some parents taking a job, and the government could make a "big difference" to reduce them.

He said further support would be part of a package of measures to break down "barriers" to entering the workforce.

But he said public finances meant the room for tax cuts was limited.

Ministers have a lot of heavy lifting to do to make a big impression at the Budget, against the backdrop of an economy that is still wobbly.

Conservative backbench MPs are calling for tax cuts they are not going to get, whilst Labour is slamming the government's long-term record.

Shadow chancellor Rachel Reeves says her party's plan to secure more investment in green industries could arrest a "low growth spiral" in the UK.

Under Budget plans that have already been announced, the government is expected to pay childcare support to parents on universal credit up front instead in arrears, as now.

The current UK-wide £646-a-month per child cap on support for universal credit claimants is also expected to be increased by several hundred pounds. An exact figure has not yet been given.

It is expected to be part of a package of measures designed to reverse a rise in economic inactivity since Covid, including changes to fitness-to-work tests for those with medical conditions.

The Budget is also expected to extend the current level of support for energy bills, limiting costs for a typical family to £2,500 a year, for a further three months until June.

Other measures reportedly under consideration, but not yet confirmed, include continuing the 5p cut to fuel duty, changes to tax-free pensions allowances, and bringing forward a rise in the pension age.

Mr Hunt has also resisted Tory calls for the planned rise in corporation tax from 19% to 25% to be cancelled or deferred.


Tax pressures


Downplaying the prospects of a major tax-cutting Budget, Mr Hunt said it was important to be "responsible with [the] public finances".

Adding that any cuts would have to be "within the bounds of what is responsible," he said "Conservatives cut taxes when they can".

He also signalled that he was unlikely to announce further childcare support for families that don't qualify for Universal Credit, describing this as "expensive".

Although ministers "would like to help everyone," he added that "you can't always do everything at once".

Cutting childcare costs has emerged as a key political battleground, with prices in the UK among the highest in the world.

Critics say the current level of government support means it is simply not worth large numbers of parents, even those on middle incomes, taking on new or extra work.

Early Years Alliance, an education charity, has welcomed the changes for families on benefits, but urged a "wider package of measures" to bring down costs for parents.

Labour has promised to completely overhaul the system in England if it takes office, saying the current model of free childcare hours is "broken".

Ms Reeves, the shadow chancellor, hit out at the Conservatives' record in government, which she said had left the UK in a "low growth, low productivity, low investment spiral".

She said Labour would take inspiration from US President Joe Biden's package of green subsidies to attract investment to new industries.

The party has said that if it wins power at the next election, its promised £8bn "national wealth fund" would be tasked with boosting investment into struggling regions.

Ms Reeves said the government had failed to "seize the opportunities" of investment in green jobs, allowing other countries to "steal march on us here in Britain".

"I feels like we are in the changing room, while other countries are in the global race," she added.

Newsletter

Related Articles

0:00
0:00
Close
Man Who Threw Sandwich at Federal Agents in Washington Charged with Assault – Identified as Justice Department Employee
A Computer That Listens, Sees, and Acts: What to Expect from Windows 12
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
UK has added India to a list of countries whose nationals, convicted of crimes, will face immediate deportation without the option to appeal from within the UK
Southwest Airlines Apologizes After 'Accidentally Forgetting' Two Blind Passengers at New Orleans Airport and Faces Criticism Over Poor Service for Passengers with Disabilities
Russian Forces Advance on Donetsk Front, Cutting Key Supply Routes Near Pokrovsk
It’s Not the Algorithm: New Study Claims Social Networks Are Fundamentally Broken
Sixty-Year-Old Claims: “My Biological Age Is Twenty-One.” Want the Same? Remember the Name Spermidine
Saudi Arabia accelerates renewables to curb domestic oil use
U.S. Investigation Reports No Russian Interference in Romanian Election First Round
Oasis Reunion Tour Linked to Temporary Rise in UK Inflation
Musk Alleges Apple Favors OpenAI in App Store Rankings
Denmark Revives EU ‘Chat Control’ Proposal for Encrypted Message Scanning
US Teen Pilot Reaches Deal to Leave Chile After Unauthorized Antarctic Landing
Trump considers lawsuit against Powell over Fed renovation costs
Trump Criticizes Goldman Sachs Over Tariff Cost Forecasts
Perplexity makes unsolicited $34.5 billion all-cash offer for Google’s Chrome browser
Kodak warns of liquidity crisis as debt obligations loom
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Taylor Swift announces 12th studio album on Travis Kelce’s podcast after high-profile year together
South Korean court orders arrest of former First Lady Kim Keon Hee on bribery and corruption allegations
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
JD Vance to meet Tory MP Robert Jenrick and Reform’s Nigel Farage on UK visit
Trump and Putin Meeting: Focus on Listening and Communication
Instagram Released a New Feature – and Sent Users Into a Panic
China Accuses: Nvidia Chips Are U.S. Espionage Tools
Mercedes’ CEO Is Killing Germany’s Auto Legacy
Trump Proposes Land Concessions to End Ukraine War
New Road Safety Measures Proposed in the UK: Focus on Eye Tests and Stricter Drink-Driving Limits
Viktor Orbán Criticizes EU's Financial Support for Ukraine Amid Economic Concerns
South Korea's Military Shrinks by 20% Amid Declining Birthrate
US Postal Service Targets Unregulated Vape Distributors in Crackdown
Duluth International Airport Running on Tech Older Than Your Grandmother's Vinyl Player
RFK Jr. Announces HHS Investigation into Big Pharma Incentives to Doctors
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Security flaws in a carmaker’s web portal let one hacker remotely unlock cars from anywhere
Street justice isn’t pretty but how else do you deal with this kind of insanity? Sometimes someone needs to standup and say something
Armenia and Azerbaijan sign U.S.-brokered accord at White House outlining transit link via southern Armenia
Barcelona Resolves Captaincy Issue with Marc-André ter Stegen
US Justice Department Seeks Release of Epstein and Maxwell Grand Jury Exhibits Amid Legal and Victim Challenges
Trump Urges Intel CEO Lip-Bu Tan to Resign Over Alleged Chinese Business Ties
Scotland’s First Minister Meets Trump Amid Visit Highlighting Whisky Tariffs, Gaza Crisis and Heritage Links
Trump Administration Increases Reward for Arrest of Venezuelan President Maduro to Fifty Million Dollars
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
OpenAI Launches GPT‑5, Its Most Advanced AI Model Yet
Embarrassment in Britain: Homelessness Minister Evicted Tenants and Forced to Resign
President Trump nominated Stephen Miran, his top economic adviser and a critic of the Federal Reserve, to temporarily fill an open Fed seat
×