In the 2023 Spring Budget, Chancellor of the Exchequer Jeremy Hunt announced a number of measures aimed at helping working parents with the cost of childcare. The new measures include an extension to the government's free childcare support, meaning those with children aged from 9 months will soon be able to access 30 hours of free childcare a week. The changes will be delivered in stages with all eligible working parents in England receiving free childcare support for children under 5 by 2025.
In this article, we summarise the childcare support mentioned in the 2023 Spring budget, when the measures will be implemented and who is eligible for the support. For a full round-up of the 2023 Spring Budget, read our article 'Spring Budget 2023 – How does it impact you?'
What changes to childcare have been announced?
Free childcare support
At present, eligible working parents with children aged 3 and 4 qualify for up to 30 hours of free childcare per week, however, this support is set to be extended for parents whose children are aged 9 months and above, as announced in the 2023 Spring Budget. The additional support is designed to help caregivers return to work and lessen the financial burden of funding the necessary childcare.
The free childcare hours can be claimed each week for a maximum of 38 weeks of the year, although if the full 30 hours are not used each week, it may be possible to spread the allowance over 52 weeks of the year. In the tables below, we summarise the existing free childcare support available to working parents as well as the changes to free childcare support and when the changes are expected to be implemented.
| Existing Free childcare support | Date implemented |
| 30 hours of free childcare per week for eligible working parents with children aged 3-4 | September 2017 |
Additional free childcare support from April 2024
| Additional free childcare support | Date implemented |
| 15 hours of free childcare per week for eligible working parents with children aged 2 | April 2024 |
| 15 hours of free childcare per week for eligible working parents with children aged 9m - 3 years | September 2024 |
| 30 hours of free childcare per week for eligible working parents with children aged 5 or under (from 9 months old) | September 2025 |
As well as the free childcare support, the government has announced additional measures to improve childcare in England including:
- An increase in the hourly rate for childcare providers via £204m of additional funding which is set to increase to £288m by 2024-25
- A change to the staff-to-child ratios for 2-year-olds, moving from 1 adult to every 4 children to 1 adult to every 5 children, although this is an optional measure
- New childminder start-up grants up to £1,200
Wraparound childcare in schools
To help working parents manage childcare when children are at school, the government has announced additional funding for local authorities from September 2024 to help set up wraparound childcare at schools.
Childcare support for those receiving Universal Credit
Working parents that receive Universal Credit will also receive additional childcare support as part of the measures announced in the 2023 Spring Budget. Previously, those that received Universal Credit in England, Scotland and Wales paid for childcare up-front and subsequently had to claim this back. This made it an unaffordable option for some parents, preventing them from returning to work.
However, as announced in the 2023 Spring Budget, childcare support for parents that receive Universal Credit will be paid upfront. The change should help those that are keen to return to work or who wish to increase their working hours. Additionally, the Universal Credit childcare cap is being increased to £951 for one child and £1,630 for two children up from £646 and £1,108 respectively.
Who is eligible for up to 30 hours of free childcare?
To be eligible for free childcare support the following must apply:
- You must live in England
- Your child must be under the age of 5 years old (at present free childcare is only available to children aged between 3 and 4)
- Your child must be attending an approved childcare provider
Your eligibility for the scheme also depends on a number of factors including your employment status and your income. More information on eligibility for up to 30 hours of free childcare can be found on the government website. Childcare support schemes may also vary if you live in Scotland, Wales or Northern Ireland.
How to apply for free childcare
Under current rules, eligible working parents qualify for up to 30 hours of free childcare when their child turns 3, up until the child reaches the age of 5. Applications can be made online once a child reaches 2 years and 36 weeks old.
The new measures announced in the 2023 Spring Budget will mean that eligible working parents can access free childcare for children under 3, details of which can be found here. However, if your child is under the age of 3 or you receive some form of financial support, you may still be eligible for help towards the cost of childcare. Find out what help you are entitled to at childcarechoices.gov.uk.
For more information on the free childcare support available, how to apply and if it is worth it, visit the government website.
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