By Jessica Frank-Keyes
Ending the prepayment meter penalty on energy bills and boosting childcare support for the poorest parents are among measures set to be announced in the spring budget.
Chancellor Jeremy Hunt this weekend confirmed households on prepayment meters will no longer pay more than people on direct debits, as of July 2023.
Energy security secretary Grant Shapps said changes would ensure “families aren’t penalised simply for how they heat their home”, describing the current situation as “a tax on some of our most vulnerable”.
The so-called ‘back to work’ budget is set to increase the maximum amount parents in receipt of Universal Credit can claim for childcare by “several hundred pounds”, the Treasury says.
Costs will also start being paid out upfront, rather than in arrears, as part of a bid to help get Brits back into the workforce.
Measures are also set to include skills training and bootcamps for those returning to the workforce and freeing up disabled people to pursue employment without fear of losing out on support.
It comes after significant pressure from business organisations including the Federation of Small Businesses (FSB), childcare lobby groups such as Pregnant then Screwed, and MPs to address the ongoing crisis in the sector.
YouGov polling last week found 54 per cent of surveyed mothers cut their working hours due to the costs of childcare, while 25 per cent of parents on Universal Credit said they would move into employment if childcare was made more affordable.
Hunt said: “For many people, there are barriers preventing them from moving into work – lack of skills, a disability or health condition, or having been out of the jobs market for an extended period of time.
“I want this back-to-work budget to break down these barriers and help people find jobs that are right for them.”
UK Impact director Dan Paskins said the move was the “right decision” and that the current system was “stopping people getting into work and putting people into debt”.
He said: “This is good for families, good for our economy and most of all, good news for children.
“It is a simple and effective change which will help put money in families’ pockets and make life easier for parents juggling work and childcare.”
Save the Children UK parent campaigner and mother-of-four Tasha Thomas said: “I am so relieved. A whole weight has been lifted now. It means I haven’t got to worry.
“It means I will be able to pay my bills and increase my hours because I will be able to afford childcare without worrying about the upfront costs.”
Hunt’s spring statement has been widely anticipated as a ‘placeholder’ budget following a run of economic shocks after the Covid pandemic; the Russian invasion of Ukraine and the energy crisis; and the fallout from Liz Truss and Kwasi Kwarteng’s disastrous mini-budget.
Labour hit back at the government’s proposals, with shadow climate and net zero secretary Ed Miliband describing plans to end the prepayment penalty as “cold comfort” for those who were paying higher prices.
“The government must urgently confirm that the ban on forced installations will remain in place beyond the end of March,” he said. “Britain’s energy bills are too high and our energy system is too weak.”
Commenting on the ‘back to work’ reforms, shadow work and pensions secretary Jonathan Ashworth MP accused the Tories of “following our lead”.
“The reality is with families struggling after 13 years of Tory economic failure it’s only Labour with a detailed plan to grow our economy, help more people into quality jobs and raise living standards,” he said.
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