Other Matters – Spring Budget 2023

Back to work

Major themes in the Budget were getting people to enter work, increasing their working hours and extending 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.

This will be rolled out in stages:

  • 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 of free childcare per week.

Where parents need childcare for more than 38 weeks a year, they are able to spread their free hour’s 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 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).

Universal Credit claimants

Changes include:

  • 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.
  • Expanding work search requirements.
  • Strengthening the application of the Universal Credit sanctions regime, including additional training for Jobcentre Work Coaches to ensure they are applying sanctions effectively, including for claimants who do not look for or take up employment.
  • Extending the Youth Offer until 2028, which will support young people looking for work.

For disabled people and those with long-term health conditions

The government is introducing measures to further help those who are not working due to long-term sickness but want to, with a focus on cardiovascular disease, mental health, and musculoskeletal conditions as the leading causes.

Employing older workers

Older workers will be supported to work for longer and to return to work via changes to the pension rules, access to an enhanced digital midlife MOT, and an expansion of the Jobcentre Plus midlife MOT offer, which provides in-person financial planning and awareness sessions for Universal Credit claimants aged over 50.

If you would like to discuss how this will affect you, please contact us by calling 0115 928 3228 or by emailing info@coalesco.co.uk.

We believe in having a journey and relationship with our clients.
You're not just a file on our desk; you're a friend.

Ready to start your financial journey with us?

Contact us today to schedule a consultation or simply drop by for that cup of tea. We can't wait to meet you!

Contact us today for a free consultation
Client-Services-Firm-of-the-year-2016 Small-Practice-of-the-year-2016 Small-Practice-of-the-year-2015