EY: Spring Budget announcement: DfE

Please see message below from the Department for Education

The Chancellor delivered the Spring Budget on 6 March 2024, announcing a Budget for long-term growth focused on delivering lower taxes, more investment and better public services.

• The Spring Budget is available here
• The Chancellor's Speech is available here
• HM Treasury press notice is here

Summary: Education and social care  

In his speech, the Chancellor commented:

"A year ago, I also announced the biggest ever expansion of childcare... this will mean an extra 60,000 parents enter the workforce in the next four years – a tremendous achievement for the Education Secretary.

"Today, in order to support the childcare sector make the new investments it now needs, I am guaranteeing the rates that will be paid to childcare providers to deliver our landmark offer for children over 9 months old for the next two years.

"More people in work and more jobs, sticking to our plan in a long-term Budget for Growth."

The Chancellor announced:

• Nurseries and preschools will be protected from rising costs through a guarantee that future funding will rise with a combination of inflation, earnings and the National Living Wage – certainty the sector needs to expand and deliver the rollout, which will save some parents using the full 30 hours up to £6,500 a year
• £105 million over four years for a further wave of 15 new special free schools, creating over 2,000 more places for children with special educational needs and disabilities (SEND).
• £45 million of match funding to local authorities to build an additional 200 open children’s home placements, and £120 million to fund the maintenance of the existing secure children’s home estate
• To further support those in work, from April 2024 the government will raise the threshold for High Income Child Benefit Charge (HICBC) to £60,000 taking 170,000 families out of paying this tax. The rate of the charge will also be halved so that Child Benefit is not repaid in full until you earn £80,000.
• Longer-term, the government is committed to removing the unfairness of the HICBC system towards single-earner families. The government will move to a system based on household rather than individual incomes by April 2026, and will consult in due course.