Budget 2024: Confirmation of 'Guaranteed' Rates for Childcare Expansion
Budget 2024: Confirmation of 'Guaranteed' Rates For Childcare Expansion
The Chancellor, Jeremy Hunt, has delivered his spring Budget on 6th March 2024, confirming there will be an extra £500m for providers over two years to support additional costs that will come with expanding the level of free childcare to 30 hours for all children 9 months and older by September 2025.
The Chancellor reiterated the Government’s commitment to the expansion, first announced in 2023’s budget. The first phase of the expansion is due to begin in April with 15 hours of free childcare becoming available for 2-year-olds.
The announcement that the Government are sticking with their expansion plans comes amid widespread uncertainty around the feasibility of the plan. Concerns about the level of funding, the capacity to meet the increase in places and staffing issues have all been expressed over the last year. This year’s budget is unlikely to quell those concerns as the Chancellor didn’t provide any details about what the funding rates would be, just that they are guaranteed. There was confirmation that the hourly rate providers are paid to deliver the free hours offers will increase in line with the metric used at Spring Budget 2023 for the next two years.
The announcement has confirmed that the funding for the expansion has not changed from its original proposition but there will be provisions made so that councils pass through at least 97% of funding rather than the current 95% to providers.
Other measures revealed in 2024s Budget included:
• By April 2026, Child Benefit will be based upon household income and not an individual’s income. From April 2024, the high-income charge threshold will be raised from £50,000 to £60,000. No one earning under £60,000 will pay a charge for Child Benefit.
• From 6 April, a 2p cut in National insurance. Employees' NI will be cut from 10 per cent to 8 per cent, and for the self-employed from 8 per cent to 6 per cent.
• £105m on special free schools over four years to provide more SEND provision.