page 5 BUDGET 15 MARCH 2023 Welfare and Family Support Childcare From April 2024, working parents of two-year-olds will be able to access 15 hours of free childcare a week in England. This will be extended from September 2024 to working parents of children aged between nine months and two years. From September 2025, all eligible working parents of children aged between nine months and three years will be able to access 30 hours of free childcare a week. The hourly funding rate that the government pays to providers in England will be increased from September 2023 and again in 2024. As a result, there will be an average of a 30% increase in the rate paid for two-year-olds this year. The staff-to-child ratios will be increased from 1:4 to 1:5 for two-year-olds in England, although the new ratios will remain optional. Universal credit (UC) Many of the UC rates will rise by 10.1% from April 2023, including the standard and work allowances as well as the extra amounts for children, except for payments for first children born before 6 April 2017. From April 2023, the maximum amount towards childcare costs for one child will rise to £951 from the previously announced £646.35 a month. For two or more children, the maximum payment increases from £1,108.04 to £1,630. UC childcare payments will be made upfront if parents move into work or want to increase their hours. The administrative earnings threshold will be increased from the equivalent of 15 hours to 18 hours at national living wage for an individual UC claimant. Below this level they will receive more work coaching support alongside a more intensive conditionality regime. For couples, the administrative threshold will be abolished. Qualifying care relief increase The amount of income tax relief available for foster carers and shared lives carers using qualifying care relief will be increased from 6 April 2023. The annual fixed amount rises from £10,000 to £18,140, the weekly amount for children under 11 increases from £200 to £375 and for children 11 or older and adults the increase is from £250 to £450. saver Don’t ignore UC. The income ceiling for UC now stretches well beyond £60,000 for some couples. UC – even just 1p a month – can unlock other benefits so you should check your eligibility. £
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