OTHER MATTERS
Back to work Major themes in the Budget were getting people to enter work, increase their working hours and extend their working lives. These include numerous proposals detailed below. Childcare Working parents in England will be able to access 30 hours of free childcare per week, for 38 weeks of the year, from when their child is nine-months old to when they start school.
start-up grants for new childminders, including for those who choose to register with a childminder agency. Childminders who register with Ofsted will receive a start-up grant of £600, whereas those who register with a childminder agency will receive £1,200. In addition, parents on Universal Credit childcare support will receive payment upfront when they are moving into work or increasing their hours, rather than in arrears. Also, the Universal Credit childcare cap will increase to £951 for one child (up from £646) and £1,630 for two children (up from £1,108).
This will be rolled out in stages:
Universal Credit claimants Changes include:
• From April 2024, all working parents of two-year-olds can access 15 hours per week. • From September 2024, all working parents of children aged nine months up to three-years old can access 15 hours per week. • From September 2025 all working parents of children aged nine months up to three-years old can access 30 hours free childcare per week. Where parents need childcare for more than 38 weeks a year, they are able to spread their free hours entitlement over a higher number of weeks. The government will substantially uplift the hourly rate paid to providers that deliver the existing free hours. It will also change the staff-to-child ratios for two-year-olds, moving from 1:4 to 1:5 and provide
• Increasing the Administrative Earnings Threshold, the minimum amount a person can earn without being asked to meet regularly with their Work Coach, from the equivalent of 15 to 18 hours of earnings at the National Living Wage. Comment These changes are expected to require over 100,000 additional claimants to meet more regularly with a Work Coach and take active steps to move into work or increase their earnings.
Other Matters
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