Tag: UK Government

Bank branch closures causing cash crisis for half a million Scots

Half a million people across Scotland who are dependent on cash risk being forgotten by banks due to the unprecedented rate of closures. Since 2015, 53% of Scotland’s bank branches have closed, which represents the highest percentage loss across the UK’s four nations.

From difficulties adapting to a society built on digital payments, to older people on lower and fixed incomes using it as a budgeting tool, many people opt to use cash for a number of reasons.

However, Westminster’s Scottish Affairs Committee raises concern that not enough support is being offered to support these individuals as the UK transitions to an increasingly digital society, nor has adequate research been undertaken to understand the full implications of such a move.

The Committee welcomes the Government’s introduction of its Financial Services and Markets Bill, which includes added protections on access to cash. The then-Treasury Minister John Glen, when appearing before the Committee, recognised the need for a more detailed picture of cash usage in Scotland.

The Committee is concerned that the rapid rate of bank branch closures may be as a result of banks rushing to close branches before legislation can take effect to protect access to cash and banking services.

In addition to Government legislation hoping to support access to cash, there have also been a number of voluntary agreements championed within the sector. This includes LINK’s Financial Inclusion Programme, which provides free access to cash via free-to-use ATMs in the most rural and deprived areas of the UK.

The Committee is of the view however that this should not be left to a voluntary agreement which leaves it vulnerable: future legislation should complement industry-led initiatives to guarantee free access to cash.

While access to cash in Scotland paints a deeply concerning picture, the Post Office has filled the void of many banking services within communities. It is deeply disappointing that Scotland has seen the highest percentage of Post Office closures anywhere in the UK, yet its resource and the service it offers appears to be steady.

In recent years, its offering of banking services has grown, and now offers customers more services than ever before, with the recent renewal of the Banking Framework Agreement. The Committee recommends that a long-term commitment is sought from banks to maintain appropriate banking services for their customers using the Post Office network.

Scottish Affairs Committee Chair, Pete Wishart MP, said: “Access to cash across Scotland has been decimated in recent years, leading to Westminster Committees investigating the issue multiple times.

“While the move to digital banking and payments has offered a method at which to do transactions that many of us enjoy, we cannot forget the 500,000 people in Scotland who rely on cash in their day-to-day lives. With the cost-of-living crisis deepening, many people are using cash for budgeting.

“But what is deeply worrying is that bank branches are closing at a record rate with very limited research or thought conducted of the possible widespread implications.

“Since the predecessor Committee’s inquiry considering this very issue, it is welcome that the Government is legislating to protect access to cash. However, this positive announcement is beset by the risk that banks may close their doors before legislation on this matter comes into force.

“We are aware of the commercial considerations affecting banks, which has played a role in the recent increase of branch closures. We welcome the effort taken by the banking industry to protect access to cash, although we still feel that there is a clear need for legislation.

“In our report today, we are calling for more research into the implications of a cashless society and more secure and longer-term agreements to ensure the continued access to cash. The Government appears to be in listening mode on this issue, and I look forward to its response in due course.”

Recommendations

The Committee’s recommendations are:

  • The UK Government should consider asking the Financial Conduct Authority (FCA) to investigate and monitor cash acceptance levels across the UK.
  • If the FCA find a substantial number of retailers refusing to accept cash, the UK Government should introduce additional protections to ensure that consumers reliant on cash are not disadvantaged.
  • The UK Government should clarify how the Financial Services and Markets Bill will interact with pre-existing industry-led solutions such as LINK’s Financial Inclusion Programme.
  • We recommend that the UK Government consider legislating in the Financial Services and Markets Bill to mandate the membership of LINK for card issuers and ATM operators to ensure that the Financial Inclusion Programme can continue to provide free access to cash for as long as it is needed.
  • Attempts to introduce deposit-taking ATMs for both consumers and SMEs have been constrained by a considerable lack of progress from both the banking industry and the UK Government. Considering the strength of the evidence to support their introduction, we repeat our predecessor Committee’s recommendation that the UK Government set up a working group with industry to introduce network-wide deposit-taking ATMs.
  • Building on the structure and objectives of the Banking Framework Agreement, we recommend that the UK Government seek a long-term commitment from banks to maintain appropriate banking services for their customers using the Post Office network, to guarantee access to cash and basic banking services for all communities in Scotland.
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Defence Secretary Ben Wallace visits Armed Forces of Ukraine as training programme starts across the UK

The first cohort of Ukrainian soldiers taking part in a major new UK-led military programme, which will train up to 10,000 Ukrainians over the coming months, have arrived in the UK.

The programme is part of the UK’s enduring commitment to support Ukraine in its fight against Russia’s unprovoked invasion, which so far amounts to more than £2.3 billion in military aid and includes more than 5,000 NLAW anti-tank weapons and M270 multiple launch rocket systems.

Defence Secretary Ben Wallace, who visited the training this week, said: “This ambitious new training programme is the next phase in the UK’s support to the Armed Forces of Ukraine in their fight against Russian aggression.

“Using the world-class expertise of the British Army we will help Ukraine to rebuild its forces and scale-up its resistance as they defend their country’s sovereignty and their right to choose their own future.”

Mr Wallace announced yesterday that he will NOT be a candidate in the election to become the next Prime Minister.

Around 1,050 UK service personnel are deploying to run the programme, which will take place at MOD sites across the North West, South West and South East of the UK. Each course will last several weeks and will be conducted by elements from 11 Security Force Assistance Brigade.

The training will give volunteer recruits with little to no military experience the skills to be effective in frontline combat. Based on the UK’s basic soldier training, the course covers weapons handling, battlefield first aid, fieldcraft, patrol tactics and the Law of Armed Conflict.

The Government has rapidly procured AK variant assault rifles for the training programme, meaning Ukrainian soldiers can train on the weapons they will be using on the front line. This effort was supported by the Welsh Guards, who tested more than 2,400 such rifles in 17 days to ensure they were ready for the Ukrainians to commence their training.

The UK has also gifted clothing and equipment to support Ukrainian soldiers in their training and deployment back to Ukraine. Each soldier will be issued with:

  • Personal protective equipment including helmets, body armour, eye protectors, ear protectors, pelvic protection, and individual first aid kits
  • Field uniforms and boots
  • Cold and wet weather clothing
  • Bergens, day sacks and webbing
  • Additional equipment required for field conditions including ponchos, sleeping bags, and entrenching tools.

The UK has a long history of supporting Ukrainian service personnel through Operation ORBITAL, which trained 22,000 Ukrainians between 2015 and 2022.

The new programme will build on this success and demonstrate the UK’s continued leadership in responding to Ukraine’s military requirements as the war evolves.

Crisis? What Crisis?

UK government rebuild under way as Tory candidates line up for top job

The Queen approved the following appointments yesterday as outgoing Prime Minister Boris Johnson assembled a new government after a tumultuous 48 hours that saw more than fifty resignations:

  • Rt Hon Greg Clark MP as Secretary of State for Levelling Up, Housing and Communities
  • Rt Hon James Cleverly MP as Secretary of State for Education
  • Rt Hon Sir Robert Buckland QC MP as Secretary of State for Wales
  • Rt Hon Kit Malthouse MP as Chancellor of the Duchy of Lancaster
  • Shailesh Vara MP as Secretary of State for Northern Ireland
  • Andrew Stephenson MP as Minister without Portfolio. He will attend Cabinet.
  • Johnny Mercer MP as a Minister of State (Minister for Veterans’ Affairs) at the Cabinet Office. He will attend Cabinet.
  • Graham Stuart MP as a Minister of State at the Foreign, Commonwealth and Development Office
  • Stephen McPartland MP as a Minister of State (Minister for Security) at the Home Office
  • Tom Pursglove MP as a Minister of State jointly at the Home Office and the Ministry of Justice
  • James Heappey MP as a Minister of State at the Ministry of Defence
  • Will Quince MP as a Minister of State at the Department for Education
  • Maria Caulfield MP as a Minister of State at the Department for Health and Social Care
  • Paul Scully MP as a Minister of State at the Department for Levelling Up, Housing and Communities. He remains as Minister for London.
  • Marcus Jones MP as a Minister of State at the Department for Levelling Up, Housing and Communities
  • Matt Warman MP as a Minister of State at the Department for Digital, Culture, Media and Sport
  • Trudy Harrison MP as a Minister of State at the Department for Transport
  • Edward Timpson CBE MP as Solicitor General

Mr Johnson plans to stay on as PM until a successor is elected by the autumn, but many Tory MPs want him to leave office straight away. Deputy Prime Minister Dominic Raab – who has ruled himself out of the race to replace Johnson – would seem like the obvious person to hold the reins during this transitional period.

Opposition leader Labour’s Sir Keir Starmer has said he will call a vote of no confidence, forcing a general election, if Johnson doesn’t go now, For that to succeed, though, Starmer would need the support of Tory MPs – and even in these turbulent times it’s pretty unlikely that turkeys will vote for Christmas!

While the Prime Minister throws together this patchwork interim government the race to succeed him has begun in earnest after Johnson was finally forced to quit as Tory leader yesterday.

Respected backbencher Tom Tugendhat is the latest MP to throw his hat into the ring, joining Attorney General Suella Braverman and Brexiteer Steve Baker who have both indicated an interest in standing for the top job. They will be joined by plenty more candidates stepping forward over the coming days, however.

Former Chancellor Rishi Sunak, former Health secretary Sajid Javid, transport secretary Grant Shapps and new Chancellor Nadhim Zahawi are all likely to stand, as is photo-opp queen, Foreign Secretary Liz Truss (above).

Defence secretary Ben Wallace is seen as a steady pair of hands and is popular with the Tory faithful and Trade minister Penny Mordaunt is also expected to put her name forward. Former health secretary Jeremy Hunt is very likely to stand, but his successor Matt Hancock has wisely ruled himself out. There will be many more who see themselves as the perfect candidate to be our next Prime Minister, though.

Spoilt for choice?

Infamy, infamy … defiant Boris says goodbye – but not just yet

PRIME MINISTER BORIS JOHNSON statement 7th July 2022:

Good afternoon everybody,

It is now clearly the will of the parliamentary Conservative party that there should be a new leader of that party and therefore a new Prime Minister, and I have agreed with Sir Graham Brady, the chairman of our backbench MPs, that the process of choosing that new leader should begin now and the timetable will be announced next week

And I have today appointed a cabinet to serve – as I will – until a new leader is in place so I want to say to the millions of people who voted for us in 2019 – many of them voting Conservative for the first time.

Thank you for that incredible mandate, the biggest Conservative majority since 1987, the biggest share of the vote since 1979 and the reason I have fought so hard for the last few days to continue to deliver that mandate in person was not just because I wanted to do so but because I felt it was my job, my duty, my obligation to you to continue to do what we promised in 2019.

And of course I am immensely proud of the achievements of this government from getting Brexit done and settling our relations with the continent after half a century reclaiming the power for this country to make its own laws in parliament, getting us all through the pandemic, delivering the fastest vaccine rollout in Europe, the fastest exit from lockdown and in the last few months leading the west in standing up to Putin’s aggression in Ukraine.

And let me say now to the people of Ukraine that I know that we in the UK will continue to back your fight for freedom for as long as it takes and at the same time in this country we have at the same time been pushing forward a vast programme of investment in infrastructure, skills and technology – the biggest for a century – because if I have one insight into human beings it is that genius and talent and enthusiasm and imagination are evenly distributed throughout the population but opportunity is not, and that is why we need to keep levelling up, keep unleashing the potential of every part of the United Kingdom. And if we can do that in this country, we will be the most prosperous in Europe.

And in the last few days I have tried to persuade my colleagues that it would be eccentric to change governments when we are delivering so much and when we have such a vast mandate and when we are actually only a handful of points behind in the polls even in mid term after quite a few months of pretty unrelenting sledging , and when the economic scene is so difficult domestically and internationally and I regret not to have been successful in those arguments.

And of course it is painful not to be able to see through so many ideas and projects myself but as we’ve seen at Westminster, the herd is powerful and when the herd moves, it moves and and my friends in politics no one is remotely indispensable.

And our brilliant and Darwinian system will produce another leader equally committed to taking this country forward through tough times not just helping families to get through it but changing and improving our systems, cutting burdens on businesses and families and – yes – cutting taxes, because that is the way to generate the growth and the income we need to pay for great public services.

And to that new leader I say, whoever he or she may be, I will give you as much support as I can and to you the British people I know that there will be many who are relieved but perhaps quite a few who will be disappointed and I want you to know how sad I am to give up the best job in the world, but them’s the breaks.

I want to thank Carrie and our children, to all the members of my family who have had to put up with so much for so long

I want to thank the peerless British civil service for all the help and support that you have given our police, our emergency services and of course our NHS who at a critical moment helped to extend my own period in office, as well as our armed services and our agencies that are so admired around the world and

[Political content omitted]

I want to thank the wonderful staff here at Number Ten and of course at Chequers and our fantastic protforce detectives – the one group, by the way, who never leak .

And above all I want to thank you the British public for the immense privilege you have given me and I want you to know that from now until the new Prime Minister is in place, your interests will be served and the government of the country will be carried on.

Being Prime Minister is an education in itself I have travelled to every part of the United Kingdom and in addition to the beauty of our natural world I have found so many people possessed of such boundless British originality and so willing to tackle old problems in new ways that I know that even if things can sometimes seem dark now, our future together is golden.

Thank you all very much.

With so much still uncertain, there’s no doubt those will NOT be Boris Johnson’s last words as Prime Minister …

Online Safety Bill amendment: No hiding place for child sex offenders

Greater powers to tackle child sexual abuse online will be introduced through an amendment to the Online Safety Bill, the Home Secretary announced yesterday (Wednesday 6 July 2022).

The amendment will give Ofcom extra tools to ensure technology companies take action to prevent, identify and remove harmful child sexual abuse and exploitation (CSAE) content.

Ofcom, the UK’s regulatory authority for telecommunications, will be able to demand that technology companies such as social media platforms roll out or develop new technologies to better detect and tackle harmful content on their platforms. If they fail to do so, Ofcom will be able to impose fines of up to £18 million or 10% of the company’s global annual turnover, depending on which is higher.

Home Secretary, Priti Patel said: “Child sexual abuse is a sickening crime. We must all work to ensure criminals are not allowed to run rampant online and technology companies must play their part and take responsibility for keeping our children safe.

“Privacy and security are not mutually exclusive – we need both, and we can have both and that is what this amendment delivers.”

The National Crime Agency estimate there are between 550,000 to 850,000 people in the UK who pose a sexual risk to children. In the year to 2021, there were 33,974 obscene publications offences recorded by the police, and although some improvements have been made, it is still too easy for offenders to access harmful content online.

Access to such content online can lead to offenders normalising their own consumption of this content, sharing methods with each other on how to evade detection, and escalation to committing contact child sexual abuse offences.

Digital Minister, Nadine Dorries said: “Tech firms have a responsibility not to provide safe spaces for horrendous images of child abuse to be shared online. Nor should they blind themselves to these awful crimes happening on their sites.

Rob Jones, NCA Director General for child sexual abuse, said: “Technology plays an extremely important part in our daily lives and its benefits are undeniable.

“But it is also a fact that online platforms can be a key tool in a child abuser’s arsenal. They use them to view and share abuse material, seek out and groom potential victims, and to discuss their offending with each other.

“Identifying these individuals online is crucial to us uncovering the real-world abuse of children.

“We are taking significant action in this space and, alongside UK policing, we are making record numbers of arrests and safeguards every month.

“While this will always be a priority, we need tech companies to be there on the front line with us and these new measures will ensure that.”

Sir Peter Wanless, NSPCC Chief Executive, said: “We need urgent action to protect children from preventable online abuse. Our latest analysis shows online grooming crimes have jumped by more than 80% in four years.

“The Online Safety Bill is a once-in-a-generation opportunity to ensure children can explore the online world safely.

“This amendment will strengthen protections around private messaging and ensure companies have a responsibility to build products with child safety in mind. This positive step shows there doesn’t have to be a trade-off between privacy and detecting and disrupting child abuse material and grooming.”

The amendment will support innovation and the development of safety technologies across the technology industry and will incentivise companies in building solutions to tackle CSEA which are effective and proportionate.

The government-funded Safety Tech Challenge Fund is demonstrating that is it is possible to detect child sexual abuse material in end-to-end encrypted environments, while respecting user privacy.

You can also read the Home Secretary’s op-ed for the The Telegraph.

Just another day at the office?

Boris Johnson ‘gets on with the job’ as his government collapses around him

IT was perhaps the most remarkable day in British political history. Seldom, if ever, has so much drama been packed into twenty-four hours.

What happened yesterday? In summary:

  • New Chancellor of the Exchequer Nadhim Zahawi does the early morning round of media calls: business as usual, getting on with the job, etc. etc.
  • An uncomfortable Prime Minister’s Questions sees Boris Johnson ridiculed by Opposition party leaders and attacked by members of his own party
  • PMQs is followed by a damning statement to parliament by outgoing Education secretary Sajid Javid
  • Boris Johnson leaves Westminster to attempt to appoint new ministers. This proves impossible as there is a steady stream of resignations – more than 40 by the end of the day – as well as new flood of letters of no confidence.
  • If PMQs was painful. an appearance in front of the high-powered Liaison Committee later in the afternoon was excruciating, with politicians from all sides taking the opportunity to heap further misery on a clearly flustered Prime Minister.
  • Asked by a committee member how his week was going, Boris Johnson replied: ‘Terrific’. I assume he was joking – but then, with this Prime Minister, you can never be really sure …

You might have thought the Prime Minister’s ‘terrific’ day couldn’t have got any worse … but this was no ordinary day.

Awaiting the PM at Downing Street was a group of Cabinet ministers, including newly-appointed Chancellor Nadhim Zahawi-, the vast majority of whom urged him to stand down.

The chairman of the Tory Party’s 1922 committee also patiently awaited his audience with the PM – and it’s not breaking any confidences to say that Sir Graham Brady was not the bearer of glad tidings of great joy either …

Johnson met each of them individually, but rather than heed their considered advice that the game was up, the Prime Minister instead sided with the views of arch-loyalists Nadine Dorries and Jacob Rees-Mogg and decided instead to fight on … and as a parting shot for the evening fired arch-conspirator Michael Gove!

Putting all those internal difficulties aside, The Prime Minister found time to ‘get on with the job’ and fired off a letter to Scotland’s First Minister Nicola Sturgeon to confirm that no, I won’t be agreeing to another referendum …

A busy day at the office indeed, and a day on which Wimbledon really couldn’t match Westminster for excitement and drama.

Who knows what surprises today will bring as the Prime Minister attempts to salvage his government from the remnants of his deeply divided party?

Can his ‘terrific’ week really get any worse? Resignation looks inevitable but could this serial survivor really escape once again?

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BREAKING NEWS: JOHNSON TO RESIGN

The BBC is reporting that Boris Johnson will resign as Conservative leader today and will continue as prime minister until the autumn.

It’s understood Mr Johnson will publicly announce his resignation later today.

Tax cut worth up to £330 comes in for 30 million workers

  • 30 million people across the UK will benefit from the biggest personal tax cut in a decade from today
  • ‘Hard working Brits’ will save up to £330 per year – 2.2 million lifted out of personal tax altogether
  • 70% of UK workers now paying less National Insurance, even after accounting for the Health and Social Care Levy
  • 30 million people across the UK will benefit from the biggest personal tax in a decade from today – with hard working Brits saving up to £330 per year.

The £6 billion tax cut will see the level at which people start paying National Insurance rise to £12,570 – lifting 2.2 million people out of paying any personal tax and ensuring people get to keep more of the money they earn.

The threshold change means that 70% of UK workers will pay less National Insurance, even after accounting for the Health and Social Care Levy that is funding the biggest catch up programme in NHS history and putting an end to spiralling social care costs.

Speaking before his resignation last night, former Chancellor of the Exchequer Rishi Sunak said: “I know rising prices are putting pressure on hard-working families across the UK – which is why we’ve stepped in to help to ease the burden with a £37 billion package of support this year, including at least £1,200 going directly to the 8 million most vulnerable families.

“Today marks the next stage in that package, with the biggest personal tax cut in over a decade coming in to help millions of workers across the UK keep up to £330 more each year.”

The Prime Minister (at time of writing, anyway – Ed.) said: “We know it’s tough for many families across the UK, but we want you to know that this government is on your side.

“Today’s tax cut means around 70 per cent of British workers will pay less National Insurance – even after accounting for the Health and Social Care Levy that is funding the biggest catch up programme in NHS history and putting an end spiralling social care costs.

“So whether you are a receptionist, work in hospitality or are a delivery driver, this tax cut is likely to make you and your family better off.”

From today the level at which people start paying National Insurance has risen from £9,880 to £12,570.

This change means that millions of people working across hundreds of different industries across the UK will now be better off.

This includes bricklayers who’ll save £218, care workers who’ll save £324, hairdressers who will get a £118 benefit and nursery assistants who’ll get a £343 yearly boost.

Workers can check their salary in the government’s online tool to estimate the amount they could save between July 2022 to July 2023.

The last major personal tax cut of today’s magnitude was nearly ten years ago, when the income tax personal allowance increased by £1,100 in 2013. Today’s threshold change is more than double that, as working people are now able to hold on to an extra £2,690 free from tax.

Today’s change to National Insurance thresholds comes as part of the Chancellor’s wider vision for a lower tax economy. At the Spring Statement Mr Sunak announced a 1p income tax cut in 2024 – which will be the first cut to the basic rate in 16 years and will save the average taxpayer a further £175 a year.

The Chancellor also committed to cutting and reforming business taxes later this year in the autumn, to help spur business growth and productivity. The government is currently working with industry on how best to do that.

The increase to the National Insurance thresholds will leave around 76% of National Insurance payers in the North East better, 75% in the North West and Merseyside, and 62% in London.

Today’s landmark personal tax cut also comes as the government launched new Help for Households campaign designed to raise awareness and signpost people to the £37 billion in support on offer and targeted at those most in need.

The support provides millions of the most vulnerable households at least £1,200 of support in total this year to help with the cost of living, with all domestic electricity customers receiving at least £400 to help with their bills.

It also includes a 5p fuel duty cut – the biggest cut ever to fuel duty rates, a rise in the national living wage to give full time workers an extra £1,000 and a cut to the Universal Credit taper rate to provide over 1 million families an extra £1,000.

The NICs threshold change takes effect following the government making tough but responsible decisions to manage the public finances responsibly and choosing not to saddle future generations with almost £400 billion of debt used to protect jobs and the economy during the pandemic – worth around £5,500 for every person in the UK.

The government had planned for this good news story to be the big news event of today, but those plans were scuppered by the resignation of two senior cabinet ministers last night. As former Prime Minister Harold MacMillan once ruefully observed: “Events, dear boy. Events” …

New package of support to help over 50s jobseekers back into work

The UK Government has announced millions of pounds of new measures to tackle unemployment amongst the over 50s on benefits.

  • New measures set to help quarter of all jobseekers get back into work
  • Multi-million package will increase jobcentre support for over 50s including those thinking about retirement
  • Long term unemployed will be referred to the multi-billion-pound Restart Scheme which is already supporting a quarter of a million back into work

The new support follows ministers meeting their target to get half a million people into work in under six months, as part of the Way to Work jobs push launched in January.

Keeping up the momentum, £22 million will be invested in new measures to tackle unemployment amongst the over 50s on benefits, as a stable income is the best route for people to support themselves through challenging times.

Jobseekers over the age of 50 will have more one-to-one support at jobcentres to help them get into, and progress in work, boosting their earnings ahead of retirement.

This increased support will be boosted by 37 50PLUS Champions covering every district across England, Wales and Scotland who will work with local employers to help them realise how their recruitment could benefit from the talent of older workers.

Mid-life MOTs will also be available in jobcentres, targeting those thinking about retirement and engaging them to take stock of their skills and finances, and consider taking jobs that could boost their incomes based on their skills experience.

Minister for Employment, Mims Davies MP said: “Older workers are a huge asset to this country, and there are currently more than 400,000 over 50s in roles than before the pandemic.

“We’re increasing funding and support at every step of their journey up the career ladder, to ensure everyone gets the support they need to get into work, progress and use their experience to boost their earnings and plan for a better future.

“Helping people find the security of a stable income, through a job they can take pride in, is also one of the best ways for people to support their families during these challenging times.”

Carole Easton, Chief Executive at the Centre for Ageing Better, said: “Seeing DWP continue to recognise the importance of a bespoke approach to older workers is really welcome.

“We know that older workers face unique challenges, such as ageism in the workplace and a possible gap in skills compared to some of their younger counterparts, so we will gladly support any tailored action that begins chip away at these significant roadblocks standing in the way of older people accessing fulfilling work.”

Research shows that people over 50 are more likely to have caring responsibilities, with 12% of men and 16% of women aged 55-64 providing informal care and increased support from Work Coaches will help them navigate these barriers.

With the economy back on its feet, and the demand for experienced staff, the advice will help older workers make the right choice for them. And for those who have been out of work for nine months, the government’s Restart Scheme will provide a year of intensive support to get them back on the career ladder.

One year since its launch, the Restart Scheme is already seeing the first jobseekers take up work and leave the scheme and is currently supporting a quarter of a million people get the skills they need to re-enter the workforce.

This is part of the government’s renewed focus on growing the economy and helping people find work and boost their earnings.

Drive to reduce the cost of childcare for parents in England

Package of measures will increase childcare support for parents, boost the number of childminders and drive take up of childcare offers, to address rising costs

The UK government has today announced ambitious new plans to improve the cost, choice and availability of childcare that will benefit hundreds of thousands of parents across the country.

The UK has some of the highest-quality childcare provision in the world with 96% of early years settings rated by Ofsted as good or outstanding, but it is also one of the biggest costs facing working families today. This means some families, in particular women, feel they are not able to return to the workplace after giving birth due to the high cost of putting their child into paid care.

With the cost of living continuing to rise, the UK government says it is committed to doing everything it can to support families with their finances while keeping people in high-wage, secure jobs that help grow the economy. New plans are being set out today to ensure high-quality and affordable childcare is accessible to all.

To drive down costs for providers and parents, a new consultation will look at increasing the number of children that can be looked after by each staff member in early years settings.

It will propose changing staff-to-child ratios from 1:4 to 1:5 for two-year-olds, giving providers more flexibility in how they run their businesses while maintaining safety and quality of care. Childcare for children aged 0-2 is the most expensive for providers to deliver, largely given the need for higher supervision levels.

This could potentially eventually reduce the cost of this form of childcare by up to 15%, or up to £40 per week for a family paying £265 per week for care for their 2-year-old, if providers adopt the changes and pass all the savings on to parents.

Education Secretary, Nadhim Zahawi said: “Every child deserves a great start in life and that means giving families the support they need.  

Childcare is an integral part of our economy, and these reforms prove again that this government is on the side of working families. I’m hugely grateful to the thousands of dedicated early years professionals who provide daily care and education to our youngest children, which is why I am determined to support them by giving them greater flexibility in how they run their services. 

This in turn will support thousands of families across the country, helping to develop children’s skills while also supporting parents into work.

The Westminster government will also increase choice and affordability for parents by taking action to open up the childminder market.

While early years settings such as nurseries are the most popular option for families, childminders are generally the most affordable and flexible form of childcare. While the average cost of a two-year-old attending a nursery for 50 hours a week in England is £265 per week, this compares to £236 with a childminder. The government will support more people to become childminders by:

  • Reducing the upfront costs of becoming a childminder via financial support;
  • Allowing childminders to spend more of their time working from a greater range of locations – for example a local community centre or village hall rather than their own home;
  • Giving childminders greater flexibilities within the ratios when looking after their own children or siblings of other children;
  • Working with Ofsted to reduce inspection of childminders; and
  • Slimming down the childminder specific Early Years Foundation Stage, reducing the framework by one-third to ensure content is targeted and simpler to navigate.

Government will streamline the Ofsted registration process for providers. More providers registering would mean that parents have a wider choice of providers on which to use these schemes, to pay for childcare that supports their working lives.

The government will also encourage the growth of Childminder Agencies (CMAs). CMAs could ultimately become major players in the childcare market – stimulating competition and driving down costs while providing parents with more options for care. CMAs are central bodies that remove the individual administrative and regulatory burden on childminders, as well as often providing parents with tools such as mobile apps through which to book their childcare.

Minister for Children and Families Will Quince said: “I’m proud of the excellent quality of childcare and early education in England, which is a huge asset to working parents. But too many are struggling to balance work with childcare costs.

“We know there are thousands of parents who are eligible for government support but not taking it up. That’s why we want to increase awareness of the existing childcare offers, allow providers to provide services more flexibly and make sure funding gets where it is needed most.”

Also announced today is an additional £10 million investment for Maintained Nursery Schools, into the supplementary funding they receive from 2023-24.

These settings often care for some of the most disadvantaged children in the country and have additional costs that other early years settings do not – such as the requirement to have a headteacher – because they are constituted as schools.

Since the introduction of the Early Years National Funding Formula in 2017, the UK government has provided supplementary funding for these nurseries to protect their funding levels. 

This additional funding forms part of a separate consultation on plans to reform how early years funding is distributed around England, to ensure the system is fair, effective and responsive to changing levels of need.

The UK government has spent more than £4 billion each year for the last five years helping families with the cost of childcare, but almost one million eligible families have not taken up their right to Tax-Free Childcare, which is worth £2,000 per year or £4,000 for children with disabilities. Universal Credit Childcare allows families to reclaim 85% of their childcare costs, worth up to £1,108 per month.

The government is also driving a renewed campaign via the Childcare Choices website so parents can access the support they are entitled to, through a ramped-up marketing campaign backed by £1.2 million, which launched last week. This will also encourage providers to take the necessary steps to offer the full range of childcare support to parents using their services.

Exchequer Secretary Helen Whately said: “Tax-Free Childcare provides a helping hand with childcare costs for working families but thousands of parents could be missing out.

“With almost one million families eligible, I want to encourage parents to take advantage of this support of up to £2,000 per year for each child.”

Secretary of State for Work and Pensions Thérèse Coffey said: “We want more people to take up Universal Credit childcare financial support that is available now to help working families.

“We also want more childcare providers to register with Ofsted and unlock more places that can be subsidised to help with the cost of living.”

The government also offers 15 hours per week of free childcare or early education for all 3- and 4-year-olds, rising to 30 hours for working families, and 15 hours for disadvantaged 2-year-olds. 

The Government recently announced that eight million of the most vulnerable households (around a third of all UK households) will receive £1,200 this year and all families will receive £400 – this is on top of changes to Universal Credit, National Living Wage and National Insurance thresholds, so that people keep more of what they earn.

This takes total government cost of living support to over £37 billion – higher than other major economies around the world.

Gemma, from Portsmouth, a mum of one uses Tax-Free Childcare. She said: As a working mum, it can be tough balancing childcare. But Tax-Free Childcare allows me to free up cash that can cover the costs of other things – when you’re talking about saving 20% of your childcare costs it can make a big difference.

The Government has recently launched a new website which brings government support on offer together in one place so the public can see what support they could be eligible for: www.gov.uk/costoflivingsupport

Featuring on radio, social media and bus stop advertising, the campaign aims to increase parents’ awareness and understanding of the childcare support available to them from the government, and maximise the number of people who take up our offer. This will coincide with the school summer holidays, maximising take up over the long break and beyond.

The campaign will signpost to parents, bringing together in one place the support available through Universal Credit, Tax-Free Childcare and 15-30 hours free childcare, clearly setting out eligibility requirements and providing a handy calculator so parents can estimate their entitlement. We will also look at simplifying the website further to make it as easy as possible for parents to understand the support available.

Universal Credit’s childcare offer can save families hundreds of pounds each month – for example, a single parent with a young child who works in social care three days a week could benefit by around £500 a month if they claimed support for their childcare costs.

Tax-Free Childcare helps working families, including the self-employed, to reduce their household costs and keep more of what they earn. Working parents with annual salaries of up to £100,000 can get up to £2,000 of childcare support each year, or £4,000 for children with disabilities.

Recent Tax-Free Childcare statistics from HM Revenue and Customs (HMRC) have revealed that 512,415 families received up to £2,000 towards the cost of their childcare during the 2021 to 2022 tax year, up from 374,135 in the previous year. More than 384,000 families used Tax-Free Childcare in March 2022 – the highest monthly number of families recorded using the scheme since it was launched in April 2017.

The announcements follow visits by Children’s Minister Will Quince to the Netherlands, Sweden, France and Scotland – whose staff:child ratios for two-year-olds the consultation launched today seeks to mirror.

The Government will also explore how to improve recruitment and retention of staff in the sector, giving parents as much confidence in the care their child receives as possible.

£1 Billion more support for Ukraine

The UK has announced an increased contribution to NATO as the Prime Minister and Defence Secretary attend the NATO summit in Madrid.

Defence Secretary Ben Wallace MP said: “We have always been clear that our strength and security comes from our alliances, and NATO is at the heart of that.

“The New Force Model and our presence in Estonia will ensure that the Alliance is able to respond at pace, helping to determine stability across Europe in the decades to come.”

RAF Typhoon and F-35B Lightning fighter jets, Royal Navy vessels including Queen Elizabeth Class aircraft carriers, and brigade-sized land forces will all be made available to NATO’s Supreme Allied Commander Europe (SACEUR) as part of the New Force Model.

NATO has introduced the New Force Model in support of Leaders’ decision to modernise and strengthen the NATO Force Structure for the future. Allies will declare capabilities, equipment and forces available to support SACEUR, ensuring they are in the right place at the right time. This will allow the Alliance’s military command to plan for emerging threats, safe in the knowledge that these assets will be available to take part in the Alliance’s response.

The UK will also contribute to the new Allied Reaction Force: an agile, multi-domain and combat-effective force ready to deploy at very high readiness and to respond to a range of crises.

It comes as the Alliance has agreed a new posture of stronger forward defences to reflect the radically changed security context since Russia’s unprovoked invasion of Ukraine.

In response to Russia’s invasion of Ukraine, the UK increased its presence in Estonia to include the temporary deployment of a second battlegroup, doubling the total number of deployed personnel to over 1,600.

The lethality of these deployments will be enhanced with advanced capabilities including helicopters and artillery systems. Meanwhile, the UK’s existing HQ in Tallinn will be expanded. Led by a Brigadier, it will support the rapid deployment of high readiness forces at the brigade level.

The UK will also support Estonia with training and logistics, the development of its first divisional-level HQ, as well as developing new ways of fighting through their joint hosting of the Defence Innovation Accelerator for the North Atlantic European HQ, and supporting innovative dual use start-ups through the NATO Innovation Fund.

In addition to increasing its deployments to Estonia, since the Russian invasion the UK has also deployed hundreds of troops to Poland and sent more aircraft to conduct air policing in Romania. Meanwhile, HMS Prince of Wales has led the Alliance’s Maritime High Readiness Force since January 2022.

Funding of £65 million has been provided by the Scottish Government as part of UK’s military aid for Ukraine.

It will make up part of the £1 billion being provided for state of the art equipment including sophisticated air defence systems and thousands of pieces of vital kit for Ukrainian soldiers.

This follows £4 million in financial aid provided by the Scottish Government for humanitarian assistance for Ukraine, and a further £3 million worth of medical supplies.

Finance Secretary Kate Forbes said: “Scotland has been clear from the start that we condemn Russia’s unprovoked, illegal invasion of Ukraine. Scotland stands for democracy, human rights and the rule of law at home and abroad.

“We have become a place of refuge and sanctuary for displaced people from Ukraine, and have done all we can to get help those fleeing the country to escape the violence.

“This further funding is to assist Ukrainian armed forces to fight Russian aggression and the unspeakable brutality being perpetrated.

“We have agreed to providing funding on this occasion given the clear need to maximise the international effort to support Ukraine. However, we are clear that this must not be seen as any kind of precedent which leads to devolved budgets being used to help pay for clearly reserved policy areas.”