Spring Budget 2023: our experts comment on childcare policies

15 Mar 2023

Laura Hinton, head of PwC’s UK Tax and People Consulting business, said:

“The government's plan to expand the 30 free hours to children under three is a big boost to working parents juggling the cost of childcare. It may take time for parents to feel the benefit, given we won’t yet have the childcare facilities or workers in place to cover the need. However, combined with other policies such as increasing wrap-around care, it sends a signal that the Government is on the case to support working parents.  The policy is also likely to be well received by the broader voting public; our research shows that people across the political spectrum, including non parents, believe incentives for parents of young children are fair - more so than measures to support the over 50s into work.”

"Our recent Women in Work report found that high childcare fees - which are some of the highest in the developed world and represent almost a third of the income of a family on the average UK wage - have been pricing women out of work and causing the gender pay gap to widen.

"The policy announced by the Chancellor today could therefore not only boost the UK labour force participation rate, it may also help to close the gender pay gap.”

Ends.

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