Labour Budget Announcement for Early Years and Childcare Sector

Chancellor Rachel Reeves Unveils Autumn Budget: A Focus on Education, Children’s Services, and Family Support

In her Autumn Budget, Chancellor of the Exchequer Rachel Reeves outlined a series of impactful financial commitments aimed at enhancing support for children, young people, and families across the UK. With increased investments in education, social care, and measures to address child poverty, Reeves’ budget reflects a comprehensive approach to improving opportunities for children while bolstering essential public services.

SEND Funding Boost

A cornerstone of the budget is a £1 billion uplift in funding for Special Educational Needs and Disabilities (SEND) services. This funding, managed through the Department for Education, will be distributed to councils beginning this year. Additionally, the funds will support alternative provision (AP) for students outside mainstream education, marking an important step forward for SEND support and educational inclusivity.

Capital Investment in Education

The Chancellor has also allocated £6.7 billion in capital investment to the Department for Education through 2025/26, focusing on the expansion and improvement of children’s services. This funding is set against a challenging backdrop of a £22 billion funding gap, yet Reeves emphasised her commitment to expanding resources for children and young people across the country.

School Repairs and Maintenance

Addressing school infrastructure, Reeves committed £2.1 billion to school maintenance, which includes a £1.4 billion investment to rebuild schools affected by the reinforced autoclaved aerated concrete (RAAC) safety crisis. This significant funding injection aims to tackle structural issues in schools and ensure safe, high-quality learning environments for children.

New VAT on Private School Fees

In line with Labour’s previous commitments, the budget introduces VAT on private school fees starting in January 2025. However, for students with SEND whose places are funded by local authorities, councils will be compensated for the VAT, ensuring support remains accessible for those with special educational needs.

Increased Investment in Schools and Youth Programs

Alongside the SEND funding, the budget triples investment in breakfast clubs and raises core school funding by £2.3 billion to support teacher recruitment. Additionally, £300 million is allocated to further education, strengthening post-secondary pathways for young adults. To address youth unemployment, Reeves announced a £240 million investment in 16 “trailblazer” projects targeting regions where young people are most at risk of becoming NEET (not in education, employment, or training), with an aim to reduce youth unemployment rates.

Childcare Expansion and Family Hubs

Reeves reiterated the government’s commitment to expanding childcare, earmarking £1.8 billion to roll out 30-hour funded childcare to children aged nine months and above starting in September 2025. The Department for Education’s budget also includes £69 million to maintain Family Hubs, a resource network supporting families through a variety of services.

Strengthened Support for Local Authorities

A real-terms funding increase for local government will add £1.3 billion to public services next year, with £300 million specifically for social care. While details on allocations for children’s social care remain unclear, this funding aims to address essential community needs and enhance support services for families.

Support for Foster and Kinship Carers

Recognizing the crucial role of foster and kinship carers, the budget introduces a £44 million package to pilot new kinship allowances across 10 local authorities. Additionally, it funds regional foster recruitment hubs to increase the number of carers, further strengthening support networks for vulnerable children.

Reducing Child Poverty and Raising Wages

The Chancellor announced measures to reduce child poverty, including lowering the monthly debt repayment cap on Universal Credit from 25% to 15%, benefiting 1.2 million low-income households. The National Minimum Wage will also increase to £10 per hour for 18- to 20-year-olds, with apprentices seeing an hourly increase from £6.40 to £7.55. Furthermore, the Household Support Fund, designed to assist struggling families, will be extended beyond April 2025.

You can read the report that has been released as of 30.10.2024 here

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