PARENTS are set to be £480 a year better off as strict rules on staff to children ratios in nurseries are relaxed.
Chancellor Jeremy Hunt is poised to announce a major shake-up of childcare at Wednesday’s Budget.
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To help with the cost of living squeeze, the number of kids per staff in nurseries is expected to rise from four to five.
This in turn should see families save £40 a week – or £480 a year.
At the Spring Budget the Chancellor will also announce that the government pay childcare costs up front for those on Universal Credit.
The maximum amount of cash parents can claim for childcare will also be increased by hundreds of pounds.
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The maximum cap for claims per month has remained unchanged for 18 years at £646 for one child and £1,108 for two.
This is now expected to increase to £950 for a single child and £1,680 for two.
Struggling mums and dads will be better off in a year under the plans, making it easier for them to go back to work.
It’s a major win for The Sun’s Make Universal Credit Work campaign, which has been calling for childcare support to be paid upfront and remove the barrier stopping parents from getting back to work since December 2018.
Currently, parents on Universal Credit can claim back 85% of their childcare costs – but they have to pay upfront first.
It means parents may have to find more than £1,000 for a month’s nursery care in advance before getting any support.
These unfair and expensive childcare costs mean three quarters of mums say it no longer makes financial sense to work, new research has found.
At the Budget Mr Hunt should also announce the current Energy Price Guarantee will be extended for three months.
Energy bills were due to soar from £2,500 to £3,000 next month.
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But lower than expected borrowing has left room for the cap on gas and electricity costs to be extended.
Thankfully from July, when the price guarantee ends, it’s estimated bills will fall to £2,000.
