The Energy Price Guarantee (EPG) will be kept at £2,500 for an additional three months from April to June, saving a typical household £160.
Energy prices are 50% lower than forecast in October, but remain high, with this support helping bridge the gap to lower prices forecast from the end of June.
Comes as Chancellor set to confirm new cost of living support at Spring Budget, including ending the pre-payment meter premium and help with childcare costs.
MILLIONS of households will get more support with high energy bills to help ease the cost of living, the Chancellor has announced today ahead of the Spring Budget.
The Energy Price Guarantee, which is protecting households by capping typical energy bills at £2,500, will be maintained at the same level for a further three months over April, May, and June, worth £160 in total for a typical household.
The Chancellor is announcing the extension today (15 March) as part of his Spring Budget, which focuses on easing the impact of rising prices, delivering on our promise to halve inflation, and growing the economy by supporting more people into work.
Government support has already cut the typical family energy bill by over £1,300 since October, stopping the average household energy bill hitting £4,279 a year this winter.
The Chancellor’s three-month extension of the Energy Price Guarantee at £2,500 means households won’t feel the full force of Ofgem’s Price Cap between April and June – which stands at £3,280 – helping to bridge consumers into the summer.
Lower wholesale gas prices are expected to feed through to lower household energy bills from July, where Cornwall Insight data suggests the Ofgem Price Cap will reach an estimated £2,100 a year for a typical household.
From April, more support is coming online with 8 million low income and vulnerable households set to receive at least £900 in cash payments over the next year, benefits and pensions set to rise by over 10 per cent, and the National Living Wage increasing to a record £10.42 an hour, so that it always pays to work.
The Spring Budget will go even further, providing hundreds of pounds more in help with childcare costs for parents on Universal Credit and ending the energy premium paid by households who use pre-payment meters, which will save 4 million families £45 a year from July.
Prime Minister Rishi Sunak said: “We know people are worried about their bills rising in April, so to give people some peace of mind, we’re keeping the Energy Price Guarantee at its current level until the summer when gas prices are expected to fall.
“Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.”
Chancellor Jeremy Hunt said: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the Energy Price Guarantee at its current level.
“With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
Energy Secretary, Grant Shapps said: “Putin’s illegal war has cost British families, which is why we’ve stepped in to pay around half of the typical household energy bill.
“With wholesale prices falling families will start to benefit, but in the meantime we’re stepping back in with the Energy Price Guarantee to prevent the typical electricity and gas bill exceeding £2,500. It’s just part of our plan to help families this winter.”
At Autumn Statement the Chancellor announced that the EPG was due to rise to £3,000 on April 1, with the government then expecting to borrow £12 billion to fund this support. Since then, energy prices have fallen by 50%, cutting the borrowing needed to fund energy support by two- thirds to £4 billion.
The change announced today also follows the latest Ofgem Price cap of £3,280 from April to June which, in large part, sets the cost for this three-month extension. Households would pay the full Ofgem price cap rate if there was no Energy Price Guarantee.
Holding down energy bills is also part of the government’s plan to halve inflation this year, and in November the Office for Budget Responsibility said that the EPG would lower the peak rate of inflation.
The Chancellor set to announce 12 Investment Zones to drive business investment and level up, each backed with £80 million.
Investment for roll out of Levelling up Partnerships, helping to regenerate places across England.
£100 million to be shared across Glasgow, Greater Manchester and the West Midlands supporting them to become globally competitive centres for research and innovation
The Chancellor will supercharge growth at the Spring Budget tomorrow (Wednesday 15 March), as he is expected to announce a plan for 12 high-growth Investment Zones and a pioneering new approach to accelerate research and development in the UK’s most budding industries.
Jeremy Hunt is expected to announce plans to enter discussions with places to host 12 high growth Investment Zones, each backed with £80 million over five years including generous tax incentives, bringing opportunity into areas which have traditionally underperformed economically.
Investment Zones will be clustered around research Institutions such as universities and will be focused on driving growth in one of the UK’s key sectors: Technology, Creative industries, Life Sciences, Advanced Manufacturing and the Green sector.
As well as for tax reliefs, funding can be used to improve skills, provide specialist business support, improve the planning system, or for local infrastructure.
Chancellor of the Exchequer Jeremy Hunt said:“True levelling up must be about local wealth creation and local decision-making to unblock obstacles to regeneration.
“From unleashing opportunity through new Investment Zones, to a new approach to accelerating R&D in city regions, we are delivering on our key priority to supercharge growth across the country”.
Levelling Up Secretary Michael Gove said:“Levelling up means backing local growth across the UK, driving innovation to attract investment and putting power into the hands of local communities so they can reach their full potential.
“Our new investment zones and Levelling Up Partnerships will deliver more jobs, better services and more opportunities for local people.”
Science, Innovation and Technology Secretary Michelle Donelan said: “This government has made clear its aim for the United Kingdom to be transformed into a scientific and technologic superpower, not only pushing our country forward, but the whole world.
“Cutting-edge innovation starts at a local level. That’s why these plans to invest £100 million into 26 groundbreaking projects in Glasgow, Greater Manchester and the West Midlands are so important, supporting them to become the future centres of research and innovation in the United Kingdom.”
Eight places in England have been shortlisted to host Investment Zones, with the intention to agree plans with local partners by the end of the year. This complements and builds on the government’s existing Freeport programme, which deliver investment on specific sites benefitting from tax and customs incentives, key to driving productivity and growth.
The eight places are those covered by:
The proposed East Midlands Mayoral Combined County Authority
Greater Manchester Mayoral Combined Authority
Liverpool City Region Mayoral Combined Authority
The proposed North East Mayoral Combined Authority
South Yorkshire Mayoral Combined Authority
Tees Valley Mayoral Combined Authority
West Midlands Mayoral Combined Authority
West Yorkshire Mayoral Combined Authority
The government is also working closely with the devolved administrations to establish how Investment Zones in Scotland, Wales and Northern Ireland will be delivered, which will account for the four final locations.
These Investment Zones will drive growth in five key sectors: life sciences, creative industries, digital technology, advanced manufacturing, and green industries.
The Chancellor is also expected to provide investment for the roll out of Levelling up Partnerships across England, helping to regenerate places in need of levelling up.
The programme will involve ‘deep dives’ carried out by a partnership of local councils, MPs business and civic leaders to gather a holistic picture of a place and its unique challenges and opportunities, and identify cross-Government interventions to unblock obstacles to regeneration.
It builds on the success of initial trials in Grimsby, which saw cross-government working to help avoid the effective closure of the town’s fish processing sector, and in Blackpool which unlocked a change of use of a central government building that was holding up a £100 million regeneration plan. The Government will work closely with the Devolved Administrations and local government to explore potential options in Scotland, Wales, and Northern Ireland.
The Chancellor is also set to accelerate the growth of high-potential innovation clusters in Glasgow, Greater Manchester and West Midlands with £100 million of investment in 26 transformative R&D projects.
The Innovation Accelerators programme is a new approach to supporting these city regions to become major, globally competitive centres for research and innovation and will support levelling up. The projects will attract private investment to develop the technologies of tomorrow, creating new jobs, and boosting regional economic growth.
Through the programme, local leaders are empowered to harness innovation in support of regional economic growth through a pioneering a new model of R&D decision-making. Working closely with Innovate UK, partnerships between local government, business and R&D institutions in the three city regions have led on selecting the 26 projects. This includes:
A University of Birmingham-led project to accelerate new health and medical technologies,
The Manchester Turing Innovation Hub linking business to cutting edge AI research and technologies to help enhance their productivity
A net zero project led by University of Strathclyde to accelerate the adoption of automated ultrasonic inspection during welding and additive manufacturing.
Tracy Brabin, Mayor of West Yorkshire, said:“West Yorkshire has a strong and thriving economy, and I’m pleased the Government has recognised the strength of our innovation by choosing to work with us to deliver an investment zone.
“It will provide further opportunities for people across the region, as well as our world leading higher educational facilities, building on our expertise in digital, technology, and health and life sciences.
“I look forward to working with government to develop the investment zone policy, unlocking our potential and ensuring our local economy thrives for years to come.”
Ben Houchen, Mayor of Tees Valley, said: “The introduction of an Investment Zone in the Tees Valley would be a huge boost to our plans to level up and redevelop our town centres.
“We have just established two Mayoral Development Corporations which will give us the powers to bring about real change to our town centres. The addition of an Investment Zone would help turbo-charge these plans and accelerate our vison.
“Investment and jobs are the fundamentals of levelling up and this would represent a further delivery on the promise the Government made to rebalance the economy of this country. We have been working for some time on Investment Zones, and I am incredibly supportive of this proposal.”
Andy Street, Mayor of the West Midlands, said:“Our Plan for Growth is central to how we drive forward our regional economic recovery as we bounce back from the temporary setback inflicted by the pandemic. The right mix of devolved powers and investment incentives will help turn that plan into action.
“That’s why this Investment Zones announcement is very welcome news – supporting our efforts to attract new businesses, create high quality jobs and supercharge our economy.
“Investment Zones will make a valuable contribution towards enhancing prosperity for residents right across our region and I look forward to working with local leaders to decide how we best take advantage of this exciting opportunity.”
Oliver Coppard, Mayor of South Yorkshire, said:“South Yorkshire’s steel and energy powered the world into the first industrial revolution, and we know we have the potential to lead the world into the next one.
“We’re home to businesses and institutions working at the forefront of advanced manufacturing, health sciences and green technology. We’re not just imagining a better future, we’re already making it.
“Investment Zones give us the chance to do even more, so I’m pleased South Yorkshire has been recognised as one of the regions able to make the most of that opportunity. I’m looking forward to working with government to design how that works so we can build a bigger, better economy here in South Yorkshire.”
CHANCELLOR’S “reset” to clean up the UK’s domestic energy supply and secure long term energy security, while delivering up to 50,000 highly skilled jobs is expected next week
£20 billion will transform carbon capture in Britain, helping create up to 50,000 highly skilled jobs.
Chancellor to confirm the next steps for Great British Nuclear as competition to deliver small modular nuclear reactors opens this year.
Plan will set the path for the UK’s clean energy supply and secure the UK’s long term energy security and help deliver one of the government’s five promises to grow our economy.
At next Wednesday’s Spring Budget (15th March) the Chancellor, Jeremy Hunt, will set out an unprecedented investment in domestic carbon capture and low carbon energy. Recognising the urgency of the UK’s clean energy revolution, he will commit to spades in the ground on these projects from next year.
No one country has yet captured the carbon capture market. The UK has enough carbon capture capacity to store over a century and half of national annual CO2 emissions, making it one of the most attractive carbon capture markets on earth, creating high-paid jobs of the future across the UK and growing our economy through new cutting-edge industries. Carbon capture will support the UK’s industrial transition to cleaner, greener processes and technology.
An unprecedented £20 billion in investment over the next 20 years will drive forward projects that aim to store 20-30 million tonnes of CO2 a year by 2030, equal to the emissions from 10-15 million cars helping us meet our carbon capture targets as part of our national net zero targets.
The Chancellor will also announce plans to boost nuclear power generation through Great British Nuclear, launching a competition for this country’s first Small Modular Nuclear Reactors, revolutionising how nuclear projects are delivered in the UK.
Chancellor of the Exchequer, Jeremy Hunt said: “Without Government support, the average household energy bill would have hit almost £4,300 this year, which is why we stepped in to save a typical household £1,300 on their energy bills this winter.
“We don’t want to see high bills like this again, it’s time for a clean energy reset. That is why we are fully committing to nuclear power in the UK, backing a new generation of small modular reactors, and investing tens of billions in clean energy through carbon capture.
“This plan will help drive energy bills down for households across the country and improve our energy security whilst delivering on one of our five promises to grow the economy.”
Energy Security Secretary, Grant Shapps said: “Putin’s illegal invasion of Ukraine has demonstrated to the world the vital importance of increasing our energy security and independence – powering more of Britain from Britain and shielding ourselves from the volatile fossil fuels market.
“Already a global leader in offshore wind power, we now want to do the same for the UK’s nuclear and carbon capture industries, which in turn will help cut the wholesale electricity prices to amongst the lowest in Europe.
“Today’s funding will play an integral role in delivering that, helping us further towards our net zero targets and creating green jobs across the country.”
Small Modular Reactors are emerging technology, and no country has yet to deploy one. To ensure the UK steals the march, the Small Nuclear Reactors competition is expected to attract the best designs from both domestic and international manufacturers with winners announced rapidly. The government will also match a proportion of private investment as part of this to ensure designs are ready to be deployed as soon as possible in the UK.
The government is already investing £210 million into the Rolls-Royce SMR project, matched by private sector funding. Rolls’ Royce reactor design is currently being assessed by safety regulator, the Office for Nuclear Regulation.
Great British Nuclear will streamline and coordinate the delivery of new nuclear power plants to meet the country’s ambition of up to 24 Gigawatts of nuclear power by 2050.
The government body will select sites for potential nuclear projects, removing costs, uncertainty, and bureaucratic barriers for manufacturers as they develop their proposals. To support future sites for nuclear development, the Government will also be consulting on a new approach to nuclear site selection later this year.
There will also be a laser focus on how to attract more investment into the sector, with the Chancellor confirming that nuclear power generation will be classed as “environmentally sustainable” under the green taxonomy regime, subject to consultation, encouraging significant private investment. Last year, the Chancellor confirmed reforms to EU-derived Solvency II regulation, which will unlock £100bn of private investment into infrastructure and clean energy over a decade.
We’ve already invested a historic £700 million stake in Sizewell C – our first investment in a nuclear project for 35 years – to provide reliable, low-carbon, power to the equivalent of 6 million homes for over 50 years. This will shore up UK energy security and create 10,000 skilled jobs, while we also continue to bring Hinkley Point C to completion, the first new nuclear power station in a generation.
We have already committed £1 billion to develop four CCUS hubs in the UK by 2030, but with today’s funding, we are providing industry with the certainty required to deploy CCUS at pace and at scale.
This is all part of our plans to transform our homegrown energy supply, investing in renewables and nuclear power, and maximising North Sea oil and gas production as we transition to net zero. All of which crucially brings skilled jobs, prosperity, and growth as we build a cleaner, greener, more secure economy.
Stakeholder reaction:
Andrew Storer, Chief Executive Officer, Nuclear Advanced Manufacturing Research Centre said: “I strongly welcome today’s announcement and the government’s commitment to establish Great British Nuclear to drive delivery of a programme of new nuclear power.
“Business needs the confidence that this will bring to invest in building industrial capability across the UK. The Nuclear AMRC will ensure that companies have access to the innovative manufacturing capability, resilient supply chains and skills needed to ensure the timely and cost-effective delivery of new nuclear power.
“This is an essential part of our future energy system and a great opportunity to drive jobs, skills development and growth across the UK as shown in our leading role in establishing the recently launched Rolls-Royce Nuclear Skills Academy. Our facilities in Rotherham and Warrington and a new technical facility in Derby will enable us to bring advanced manufacturing capability to support the Great British Nuclear mission in the heart of UK industry”.
Tom Greatrex, Chief Executive, the Nuclear Industry Association, said: “This is a huge step forward for UK energy security and UK jobs. Green labelling nuclear will drive crucial investment into projects large and small. Setting up GBN with the powers to select sites for projects will make nuclear deployment more efficient and give the supply chain a clear pipeline to work from.
“The SMR competition should put us back in the global race and create opportunities for UK technology and others to bring jobs and investment to the UK and win export orders in a massive market worldwide.
“We look forward to seeing details of funding for GBN and of the SMR competition in the Budget, as well as confirmation of our ambitions for fleet deployment of large and small scale reactors to make us a clean energy powerhouse of the 21st century.
“More nuclear cuts gas imports, cuts carbon and creates good jobs for communities all across this country.”
Dr Nina Skorupska CBE FEI, Chief Executive of the REA (The Association for Renewable Energy and Clean Technology) said: “Government’s commitment to advancing carbon capture and storage is a long awaited and welcome step forward. It is particularly essential that today’s announcements deliver a route to market for bioenergy with carbon capture and storage, at a range of scales.
“Combining this technology with low carbon bioenergy production, which uses biomass and waste feedstocks, produces real-world carbon removals from the atmosphere that are critical to achieving net zero, after having realised emission reductions.
“This support will help to reaffirm the UK’s global position as leaders in this innovative technology, and see it built at commercial scale. Crucially it will help in attracting new investment, which in turn will lead to thousands of jobs and the growth of the UK’s Green economy.”
Chancellor set to announce new funding package for veterans across the UK at the Spring Budget
£33 million package will increase availability of veteran housing and support veterans with serious injuries as a result of their service
Comes on top of £8.5 million package announced last year to end veteran homelessness
The Chancellor Jeremy Hunt is set to announce in this week’s Budget an additional £33 million over the next 3 years to support veterans, in recognition of the sacrifices they’ve made for the UK.
The majority of the funding package (£20 million) will go towards the Veteran Capital Housing Fund – a new project to provide extra housing for veterans through the development of new builds and refurbishment of veteran social and charitable housing.
The Chancellor will also extend the Veterans Mobility Fund – backed by £3 million – to provide enduring support for veterans with serious physical injury resulting from their service.
The remaining £10 million will go directly to the Office for Veteran’s Affairs to increase the service and engagement provided to veterans over the next two years.
Chancellor of the Exchequer Jeremy Hunt said: “We all owe our veterans a huge amount of gratitude for defending democracy and keeping our country safe – and it’s only right that we provide them with all the support they need when they come home.
“This government is firmly on the side of our veterans, and this week I’ll set out a comprehensive package of policies that will solidify our enduring commitment to our ex-servicemen and women for years to come.”
There are thousands of units in houses, village settlements, care homes and other accommodation specifically for veterans across the country. Many of these could be in need of modernisation, replacement or expansion. Providing sustainable housing is key to helping those who have left service – particularly those who are vulnerable and with complex needs.
The new £20 million Veteran Capital Housing Fund will go towards this alongside action to end veteran rough sleeping within this Parliament – helping the government deliver its pledge in the Veterans’ Strategy Action Plan 2022-24.
The Veterans Mobility Fund has previously been used to provide dedicated equipment for hundreds of eligible veterans, including specialist wheelchairs and orthotics which is not usually available via the NHS or through the Ministry of Defence. The additional £3 million will refresh this fund to ensure veterans continue to get the specialist support they need.
The government has a strong record of supporting veterans. At the end of last year, the government announced more than £8.5 million of funding to deliver services in more than 900 housing units in England, where specialist help for veterans, including with health, education and employment needs are provided.
As part of this, the government established a new referral scheme – Op FORTITUDE – that will enable veterans at risk of homelessness to access supported housing and wrap-around specialist care in health, housing and education from later this year.
The government also introduced Op COURAGE, a bespoke mental health support service for veterans in the NHS in England, backed by over £18 million a year investment plus an additional £2.7 million to be invested over the next two years. The service has already helped tens of thousands of patients since it was established in 2021.
– Chancellor declares “prepayment meter penalty over from July”, cutting energy bills for over four million families. – Families on prepayment meters will no longer pay more compared to people on direct debts. – Follows support this winter which has already cut the typical household bill by almost half.
OVER FOUR MILLION families are set to save £45 a year on their energy bills from July as the Chancellor ends the prepayment premium.
Households on prepayment meters pay more on average compared to direct debit customers due to extra costs firms take on managing meters – such as supplying vouchers and collecting payments – being passed on to users.
The vast majority of households who rely on prepayment meters are typically vulnerable or low income, which means the higher tariff and inability to spread the cost is hitting those who can least afford it.
At his Spring Budget next week, the Chancellor is expected to announce fairness reforms to energy bills, bringing the bills of families on prepayment meters in line with average direct debit energy bill under the Energy Price Guarantee.
Chancellor of the Exchequer, Jeremy Hunt said: “It is clearly unfair that those on prepayment meters pay more than others. We are going to put an end to that.
“From July four million households won’t pay more than those on direct debits. We’ve already cut energy bills by almost half this winter, and this latest reform is proof again that we’re always on the side of families.”
Energy Security Secretary Grant Shapps said: “Charging prepayment meter customers more to receive their energy is a tax on some of our most vulnerable – this change will stop that.
“It’s even more important at a time Brits are faced with high energy costs and when we’ve seen vulnerable households wrongly forced onto them. While actions I’ve pushed for have meant forced installations are on pause, warrants aren’t being waved through and Ofgem is toughening up its reviews, our changes will make sure families aren’t penalised simply for how they heat their home.”
The change is expected to come into effect from July 1 through updates to the Energy Price Guarantee at a cost of £200 million.
From April 2024, when the Energy Price Guarantee ends, the Chancellor has tasked energy regulator Ofgem to report back on additional regulatory options to permanently end the premium and bring fairness to bill payment methods in the long term.
The move is the latest government intervention to help families with their energy costs after the average family bill was cut by £1300 this Winter.
Plan expected to remove barriers to people getting into work and tackle Britain’s economic inactivity problem.
Support will focus on disabled people and those with long-term health conditions, over 50s, and low-earners and parents on Universal Credit.
Changes are expected to encourage benefit claimants to move into work or increase their hours with more Work Coach support, and childcare costs on Universal Credit to be paid up front.
Chancellor Jeremy Hunt is expected to set out the ambition to get hundreds of thousands more people into work in his Budget next week.
Benefit claimants are expected to be encouraged to move into work or increase their hours, through changes to the Universal Credit system and increased job support programmes. As a result of measures set to be announced at Budget, hundreds of thousands of claimants will be asked to attend more regular meetings with work coaches, skills bootcamps will be expanded and the Work Capability Assessment will be scrapped.
The government will also start paying childcare costs on Universal Credit up front, rather than in arrears. Currently many low-income working parents are unable to afford the up-front cost of childcare, making it harder for them to get into work. The maximum amount people can claim for childcare on Universal Credit will also be increased by several hundred pounds, making childcare more affordable for thousands of working parents.
These measures will help people get jobs, increase their hours and extend their working lives – all contributing to the government’s priority to grow the economy.
The Chancellor’s plans are expected to benefit disabled people and those with long-term health conditions, people on benefits and the over 50s. Currently there are more than a million vacancies in the economy, and one fifth of the working population is economically inactive – out of work and not looking for work.
Jeremy Hunt, Chancellor of the Exchequer, said:“Those who can work, should work because independence is always better than dependence.
“Already we’re seeing near record levels of employment in Britain, but we need to go further to build a country that rewards work and gives everyone the chance of a better future.
“But 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.
“We need to plug the skills gaps and give people the qualifications, support and incentives they need to get into work. Through this plan, we can address labour shortages, bring down inflation, and put Britain back on a path to growth.”
Changes to the Universal Credit system are anticipated to encourage claimants to move into work or increase their hours with additional support from their Work Coaches.
Changes to Universal Credit will include:
Paying parents on Universal Credit childcare support up-front when they are moving into work or increasing their hours, rather than in arrears meaning low-income families will find it easier to afford and it will help remove a barrier that many face when thinking about going back to work.
Increasing the maximum amount parents on Universal Credit can receive in childcare support by several hundred pounds, making childcare more affordable for thousands of parents.
Alongside these changes, strengthened work search requirements are expected to encourage over 700,000 lead carers of children on Universal Credit to look for work or increase their hours and will receive additional Work Coach support to do so. Previously they would have had only limited requirements, or no requirements at all.
The Administrative Earnings Threshold (AET), the minimum amount a person can earn without being asked to meet regularly with their Work Coach, will be increased from the equivalent of 15 to 18 hours of earnings at the National Living Wage for an individual claimant. The couples AET, where a second member of a household may not be asked to look for work if their partner is working, will be removed entirely. This is expected to ask over 100,000 additional claimants to meet more regularly with a Work Coach and take active steps to move into work or increase their earnings.
Strengthening the application of the Universal Credit sanctions regime. This includes additional training for Jobcentre Work Coaches to ensure they are applying sanctions effectively, including for claimants who do not look for or take up employment, and automating administrative elements of the sanctions process, including sending automated messages to claimants who fail to meet with their Work Coach, to reduce error rates and free up Work Coach time.
For disabled people and long-term sick:
A Health and Disability White Paper will be published on the day of the Budget outlining our plans to scrap the Work Capability Assessment. Under the current system disabled people need to have a health assessment and be found incapable of work to receive additional income support through the benefits system. Scrapping the Work Capability Assessment is the biggest reform to the welfare system in a decade, meaning that disabled people can try work without fear of losing their benefits, and reducing the number of assessments needed to qualify for health-related benefits.
For the over 50s:
Returnerships will offer skills training that focuses on flexibility and takes previous experience into account, shortening the length of time they have to be in training.
Skills bootcamps will be expanded by 8,000 places per year in 2024-25, up from 56,000 currently, reskilling people in important sectors such as construction and technology.
Latest figures show that employment is at 75.6% and unemployment is close to a record low of 3.7%.
Charities and business groups react to the Chancellor’s expected Budget announcement of getting hundreds of thousands more people into work.
Plan expected to remove barriers to people getting into work and tackle Britain’s economic inactivity problem.
Support will focus on disabled people and those with long-term health conditions, over 50s, and low-earners and parents on Universal Credit.
Changes are expected to encourage benefit claimants to move into work or increase their hours with more Work Coach support, and childcare costs on Universal Credit to be paid up front.
STAKEHOLDER REACTION: CHARITIES
Victoria Benson, Chief Executive, Gingerbread said:“Single parents are all too often locked out of work because they can’t afford the upfront childcare costs.
“We welcome this change and the increase in childcare support available to low income single parents. We know that single parents want to work and that those who are working want to work more hours and these changes will help many to do just this.”
Dan Paskins, Director of UK Impact, Save the Children said:“The UK Government has made the right decision in deciding to pay childcare fees for those on Universal Credit upfront rather than in arrears. This system was stopping people getting into work and putting people into debt.
“We’re delighted also for Save the Children’s parent campaigners who have spent years trying to get this system changed and given evidence many times in person about how this system has been negatively impacting their lives.
“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.”
Laura Davis, Chief Executive, The British Association for Supported Employment said:“The British Association for Supported Employment (BASE) welcomes the Government’s announcements, which focus on empowering more disabled people to feel confident in entering or re-entering the labour market.
“We’re particularly pleased to hear about the plans to scrap the work capability assessment which will be a great step towards ensuring people can try employment without fear.
“We believe everyone who wants to work, can, with the right job and the right support, and should be provided every opportunity to dream big, without fear of being financially worse off.
“We look forward to hearing the detail in the Back to Work Budget on the 15th March and would welcome the opportunity to work with the government over the upcoming months to ensure that the right support into employment is available to all disabled people across the country.
“BASE is proud to represent the amazing Supported Employment Services and Employer-Partners, who are committed to embedding inclusive recruitment, using the evidenced-based model that works. Our place, train and maintain model supports Disabled, Neurodivergent and disadvantaged people across the UK, into well matched sustainable careers that meets their needs and those of the labour market.”
STAKEHOLDER REACTION: BUSINESS REPRESENTATIVE ORGANISATIONS & TRADE BODIES
Syma Cullasy-Aldridge, Chief Campaigns Director, CBI said:“As firms struggle to fill more than one million job vacancies in the economy, it’s good to see the Government finding ways to support people back into the workplace.
“Childcare costs are a barrier to many parents returning to work, especially those on lower incomes. It’s absolutely right that Government childcare support for those on Universal Credit is now paid upfront. The Government needs to announce the launch of a review into childcare to ensure it works for everyone.
“Helping the over 50s return to work requires flexible skills support from firms, so the Government should be listening to business-wide calls for a reform of the Apprenticeship Levy.
“Business will hope to hear more on how the Government can help support people back into the workplace at next week’s Budget – big gaps in our workforce require big solutions.”
Kate Nicholls, Chief Executive, UKHospitality said:“Despite having record numbers of people working in hospitality, labour shortages continue to hold back our sectors growth potential.
“The 150,000 vacancies in hospitality are forcing venues to reduce trading hours and days, significantly impacting businesses to the tune of £25 billion in lost sales and £7 billion in lost tax to the Treasury, which hamstrings our very real capability to deliver record sales when firing on all cylinders.
“The measures announced by the Government are positive and will help get more people into work. In particular, the introduction of more flexible, shortened skills training and breaking down some of the barriers to work that exists within Universal Credit will be beneficial.
“With hospitality so central to the everyday economy and a proven driver of economic growth, investment and jobs, it’s absolutely right that addressing these shortages are a priority for the Chancellor. Making this work for such a strategically important sector will allow hospitality to help the Government deliver its twin objectives of getting the economy growing and bringing down inflation.
“Through our work with Ministers on the over 50s working group and as a Disability Ambassador for the Cabinet Office, I look forward to continuing to work with the Government on labour, skills and training.”
Neil Carberry, Chief Executive, the Recruitment & Employment Confederation, said:“Our analysis shows that labour & skills shortages could cost the UK economy up to £39billion per year from 2024 – around the same as two Elizabeth lines.
“So it is important that action is taken, particularly in childcare which can be a significant barrier to work for many families. Helping those furthest away from the labour market into work is vital – and has been our focus through the Restart programme. Schemes like Restart prove the job is not one for government alone, businesses and recruitment experts can also play their part to great effect.”
Elizabeth Taylor, Chief Executive, Employment Related Services Association (ERSA) said:“At the Employment Related Services Association, we welcome the announcement that barriers to employment will be removed for some economically inactive groups.
“The employment support sector has the experience and knowledge to deliver this, and we know what works, so we sincerely hope that we will have a part to play. We know the differences between those who are voluntarily and involuntarily not currently seeking work, we recognise that employment support needs to be tailored to the individual, these are not homogenous groups.
“Providers in the sector will be required to work with those who will not engage with Jobcentre Plus. The employment support sector has a proven track record of community-based engagement, of delivering advice and support, and expertise in matching people with the right job that can be sustained. Returning to work must be an attractive proposition – let’s make it one.”
Package will see a new detention centre established in France as well as the deployment of more French personnel and enhanced technology to patrol beaches in a shared effort to drive down illegal migration
Package will see a new detention centre established in France as well as the deployment of more French personnel and enhanced technology to patrol beaches in a shared effort to drive down illegal migration.
The unparalleled multi-year agreement delivers on the PM’s priority to stop small boats and builds on joint measures taken with France in 2022 which increased patrols by 40%.
Enhanced cooperation aims to increase the interception rate for attempted crossings and drastically reduce the number of crossings each year.
Hundreds of extra French law enforcement officers will use enhanced technology and intelligence insight to prevent illegal Channel crossings under a new agreement struck by the Prime Minister and President Macron in Paris yesterday.
For the first time, the UK will help fund a detention centre in France to enhance the country’s ability to cope with the level of people being trafficked across the Channel. This new centre will support French efforts to increase detention capacity, allowing more migrants who might otherwise travel by dangerous and illegal routes to the UK to be removed from the French coast.
Building on our existing partnership, which saw twice as many illegal crossings stopped in 2022 than 2021, today’s agreement will also more than double the number of personnel deployed in northern France to tackle small boats, with over half of these in place by the end of the year. The UK will contribute funding towards this.
Efforts will be bolstered by a new, highly trained, permanent French mobile policing unit dedicated to tackling small boats. Additional drones, aircraft and other technologies like surveillance will also be deployed, as the UK and France step up intelligence sharing to clamp down on people trafficking routes.
These French efforts will be overseen by a new 24/7 zonal coordination centre, with permanent UK liaison officers. The coordination centre will bring all relevant French law enforcement partners together for the first time to coordinate the response to an alarming trend which has seen a 50% rise in illegal migration across Europe in the last year. The UK has our own Small Boats Operations Command which has ensured that 99% of those who enter British waters are intercepted.
This enhanced cooperation aims to increase the increase the interception rate for attempted crossings and drastically reduce the number of crossings each year, supporting our long-term, shared goal of completely stopping this illegal migration route.
The Prime Minister said: “I have made it one of my five priorities to stop the boats. We are delivering on that priority to stop people coming to the UK illegally.
“Last year I agreed the largest ever small boats deal with France to increase UK-funded patrols by 40 per cent. This week I announced measures to ensure nobody who enters the UK illegally can remain here.
“We don’t need to manage this problem, we need to break it. And today, we have gone further than ever before to put an end to this disgusting trade in human life. Working together, the UK and France will ensure that nobody can exploit our systems with impunity.”
In addition to the extra steps taken to patrol the beaches in the north of France, today’s agreement will also see further UK and French cooperation upstream to stop illegal migration at source. This includes further coordination between the National Crime Agency and its French counterpart via officers based in countries along the routes favoured by people traffickers.
Alongside last year’s deal with France, the Prime Minister has taken a number of steps to curb illegal migration since taking office. This includes re-establishing the Calais Group of Northern European nations to disrupt traffickers and setting a long-term ambition for a UK-EU wide agreement on returns – an ambition France has confirmed today that they share.
This week the UK Government has announced a Bill to end illegal entry as a route to asylum in the UK.
These measures will remove the incentive for people to risk their lives through dangerous and unnecessary journeys and pull the rug from under the criminal gangs profiting from this misery once and for all.
Illegal migrants will be detained and swiftly removed to their home country if safe, or another safe third country, such as Rwanda, where they will be supported to rebuild their lives.
Anyone illegally entering the UK will be prevented from accessing the UK’s world-leading modern slavery support or abusing these laws to block their removal.
The only challenges that will suspend removal will be where someone claims that their removal to a safe third country would lead to a real risk of serious and irreversible harm, or on the basis that they do not fall within the cohort of persons liable to removal under the Bill. Any other challenges or human rights claims can also only be heard after removal, remotely.
By ending illegal immigration as a route to asylum, stopping the boats and taking back control of our borders the Bill will ensure the UK can better support people coming through fair, safe and legal routes.
People who refuse to stop promoting tax avoidance in the UK could serve time in prison. the Chancellor is expected to announce at next week’s Spring Budget.
Fewer non-compliant tax avoidance schemes operating in the market cuts the likelihood of people getting involved with them and facing thousands of pounds in unexpected future tax bills and penalties as a result
Part of Chancellor’s commitment to help protect taxpayers and public services.
People who refuse to stop promoting tax avoidance in the UK could serve time in prison, the Chancellor is expected to announce at next week’s Spring Budget.
The UK loses around £400 million per year to marketed tax avoidance, money which could be going towards public services, and it is the users of schemes, including agency workers, contractors and freelancers, who can end up with big tax bills, rather than the promoters who sold it to them.
Wednesday’s expected announcement is part of the Chancellor’s commitment to continue cracking down on those selling tax avoidance schemes to help protect taxpayers and public services.
Chancellor of the Exchequer Jeremy Hunt said: “It is everyday people who lose out from tax avoidance, whether it’s individuals facing big bills after getting involved with harmful schemes or funding being taken away from public services.
“That is why I am determined for promoters to face the music for the damage they cause and the lives they harm by stopping them in their tracks.”
Marketed tax avoidance schemes tempt people into avoidance landing them with unexpected tax bills. Promoters of schemes are behind the schemes, and they often use a network of sellers to help them. Over the last 18 years, they have shifted focus away from wealthy clients towards people on middle incomes. Today the market is dominated by umbrella companies that choose to target contractors and agency workers.
To help everyday taxpayers, HMRC are laser-focused on driving promoters out of business. 31 tax avoidance schemes and 27 of their promoters had been named by HMRC to warn thousands of taxpayers to not to get involved.
There are also already financial penalties in place for promoters who ignore “Stop Notices” and don’t stop promoting.
But the Chancellor is expected to go one step further at the Budget by announcing a consultation that could result with promoters serving time in UK prisons when found guilty in a court of law.
While individuals are ultimately accountable for their own tax affairs, this action will also help up to 2.4 million contractors, including hospital workers, who can become involved in tax avoidance through the agencies they trust to handle their tax affairs. According to HMRC, hospital workers, including those working part-time, are the highest users of tax avoidance schemes in the UK out of any sector.
Fewer non-compliant tax avoidance schemes operating in the market cuts the likelihood of people getting involved with them in the first place, and facing thousands of pounds in unexpected future tax bills and penalties as a result.
Case Study – Tanya, nurse
Tanya got caught up in a tax avoidance scheme and has shared her story as a warning to others.
Tanya is a single parent. She works as a critical care nurse at her local hospital. She found her job through an agency, and they recommended an umbrella company that provided payroll services. Tanya chose an umbrella company that gave her the highest take-home pay. This turned out to be a tax avoidance scheme which she joined. This left her with an unexpected tax bill, on top of the high fees she had paid to the umbrella company for using the scheme.
“I was sold on the benefits of higher pay.”
Tanya explains: “As a nurse I trust my patients and they trust me, that is the relationship of care. I trusted my agency and umbrella company and I feel like they lied to me and scammed me, I thought my umbrella company would care but they didn’t.
“My agency and umbrella company sold me the benefits of higher pay through what they described as their Tax Plan model. This has now left me owing HMRC money and my umbrella company has washed their hands of me, they just disappeared and left me with the tax bills.”
It is unlikely that Tanya will be able to recover the high fees charged by her umbrella company, as they are now seeking voluntary liquidation. She must also pay tax of nearly £7,500 and some interest.
Tanya contacted HMRC and wanted to sort everything out. If she can’t settle her taxes and pay what she owes in one go, she will be offered time to pay her tax bill by instalments.
As well as criminalising promoters of such schemes, the Chancellor is also expected to announce that their directors could be quickly disqualified from directing companies. This builds on the government’s existing work to deter promoters from promoting schemes.
HOUSEHOLDS ACROSS EDINBURGH SUFFERING FROM TORY-MADE COST OF LIVING CRISIS
The Chancellor must use next week’s budget to tackle the Tory-made cost of living crisis harming households across Edinburgh, Tommy Sheppard MP and Deidre Brock MP have said.
Polling carried out by Survation in partnership with campaign group 38Degrees revealed the stark impact of rising costs imposed on households in recent months, with findings showing in Edinburgh East: 21% of people have missed rent payments in the last six months, 32% haven’t been able to afford to turn the heating on, and 21% fear they may have to use a foodbank.
Meanwhile, in Edinburgh North and Leith the figures are even higher, with 22% of people have missed rent payments over the same period, 41% unable to afford to turn the heating on and 28% are worried they may have to use a foodbank.
Commenting, Edinburgh North and Leith MP Deidre Brock, said: “All eyes are on next week’s budget to see what support is on offer to assist households through a cost-of-living crisis of the Tories’ making.
“People and families across Edinburgh are suffering from a toxic mix of inflation, soaring energy costs, rising mortgage rates, and Tory austerity and cannot afford continued inaction from the UK government.
“If the Chancellor wants to provide, he can start by cutting the Energy Price Guarantee to £2000 and maintaining the £400 Energy Bill Support Scheme to the summer, a move that would save households £1,400.
“The fact thousands of my constituents are missing rent payments, are living without heating through the cold months, are relying on foodbanks is a disgrace that should shame the Tories into taking serious action – but I won’t hold my breath.”
Tommy Sheppard MP for Edinburgh East added: “These figures have soared, like costs, under Westminster Tory rule and we’re unlikely to see what families desperately need from a party that throughout its existence has lacked the political will to help the most vulnerable.
“In Scotland we’ve used our limited powers to support households, including with the introduction of the Scottish Child payment, described as ‘game-changing’ by leading charities. But it shouldn’t be for the SNP Scottish Government to constantly have to mitigate the worst of Tory rule.
“The impact of the Tory-made cost of living crisis has set out further proof that only with the full powers of independence can we offer real support through difficult times and secure just economic prosperity that works for everyone in our society.”
Laws include legal duty on the Home Secretary to remove anyone who enters the UK illegally
Earlier this year the Prime Minister made stopping the boats one of his 5 promises to the British people. The ‘Stop the Boats’ – or Illegal Migration – Bill will fulfil that promise by ending illegal entry as a route to asylum in the UK.
This will remove the incentive for people to risk their lives through these dangerous and unnecessary journeys and pull the rug from under the criminal gangs profiting from this misery once and for all.
People who arrive in the UK illegally will instead be detained and swiftly removed to their home country if safe, or another safe third country, such as Rwanda, where they will be supported to rebuild their lives.
Anyone illegally entering the UK will be prevented from accessing the UK’s world-leading modern slavery support or abusing these laws to block their removal. Any other challenges or human rights claims can also only be heard after removal, remotely.
By ending illegal immigration as a route to asylum, stopping the boats and taking back control of our borders the Bill will ensure the UK can better support people coming through fair, safe and legal routes.
The UK will always be a compassionate country, as demonstrated by the nation opening its hearts and homes to those from fleeing from Afghanistan and Ukraine, and under this Bill, Parliament will set an annual cap on the number of refugees settled via safe and legal routes, taking into account local authority capacity for housing, public services and the support communities rightly expect.
Home Secretary Suella Braverman said: “The British people rightly expect us to solve this crisis and that’s what myself and the Prime Minister fully intend to do. We must stop the boats.
“It is completely unfair that people who travel through a string of safe countries then come to the UK illegally and abuse our asylum laws to avoid removal.
“It has to stop. By bringing in new laws, I am making it absolutely clear that the only route to the UK is a safe and legal route. If you come here illegally, you won’t be able to claim asylum or build a life here.
“You will not be allowed to stay. You will be returned home if safe, or to a safe third country like Rwanda. It’s the only way to prevent people risking their lives and paying criminals thousands of pounds to get here.”
The Bill, introduced to Parliament yesterday (7 March 2023), will mean anyone who enters the UK illegally and who has passed through a safe country will be legally required to be removed and the Home Secretary will have the power to enforce it.
Migrants may be detained for 28 days with no recourse for bail or judicial review, and then for as long as there is a reasonable prospect of removal.
In exceptional circumstances if there is a risk that someone would suffer a real risk of serious and irreversible harm when they are relocated to that specific safe third country, they would not be removed until it was safe to do so. Even in these cases you will have a maximum 45 days to remain in the UK before your appeal is exhausted.
The annual number settled via safe and legal routes will be kept under review, and if there is a humanitarian crisis within the world that requires a response, then the UK will step up and offer sanctuary to those in need, as we have done for tens of thousands of Ukrainians and Afghans.
The Bill forms part of the action the UK Government is taking to stop small boat crossings and illegal migration as a whole. This includes:
an agreement with Albania that recognises their status as a safe country
a new dedicated unit to speed up the processing of Albanian cases – since the announcement in December we have returned over 3000 illegal migrants, including over 500 Albanians
ending the legacy backlog of asylum claims by the end of 2023 – we have already doubled decision makers and we will double the number again and we are changing the system to make it more productive
reducing the use of hotels, with the government currently spending £6.2 million a day, by moving asylum seekers to cheaper alternative accommodation
established the Small Boats Operational Command in December, enabling us from January to protect the resources of our Immigration Enforcement teams – as a direct result of this change, we have been able to significantly increase the numbers of immigration enforcement visits undertaken, deliver a 50% uplift in enforcement visits per month and have seen a corresponding increase in arrests
doubling the funding for Operation Invigor, which brings together the NCA, Home Office Intelligence and UK policing to disrupt organised crime groups who are smuggling people from source countries to the beaches of northern France
our joint work with France saw nearly 33,000 Channel crossings prevented in 2022, compared to just over 23,000 in 2021 – since the UK-France Joint Intelligence Cell (JIC) was established in July 2020, 59 organised criminal groups involved in small boats crossings
clamping down on people smugglers, with over 350 arrests made since the Nationality and Borders Act became law
welcoming current collaboration with the French to tackle illegal migration, which includes agreeing further action at the UK/FR Leaders’ Summit
Summary of Bill measures:
Duty to make arrangements for removal – the Home Secretary will have a legal duty to remove people who have entered the UK illegally.
Detention and bail – strengthening detention powers so people can only apply for bail from the Courts (First-tier Tribunal) after 28 days (although habeus corpus will remain).
Unaccompanied children – minors who come to the UK illegally will not be removed to a safe third country until adulthood, except in limited circumstances.
Entry, citizenship and settlement – people who come to the UK illegally will be prevented from settling in the country and will face a permanent ban from returning.
Asylum – people who come here illegally will have their asylum claims deemed inadmissible and considered in a safe third country.
Modern slavery – modern slavery referrals for those who come to the UK illegally will be disqualified under public order grounds under the terms of the international anti-trafficking treaty, ECAT.
Legal proceedings – limiting the circumstances in which legal challenges will prevent someone from being removed from the UK. Most legal challenges will be considered when someone has been successfully removed from the UK.
Expanding the list of countries that are considered safe in law – this will make it unquestionably clear when someone doesn’t need our protection because they are obviously not at risk of persecution in their home country.
Annual number of people using safe and legal routes – committing to resettling a specific number of refugees in the UK every year.
Today we are introducing new legislation to keep my promise to you – to stop the boats.
My policy is very simple, it is this country—and your government—who should decide who comes here, not criminal gangs.
The first step is understanding the nature—and scale—of what we are dealing with.
The number of people entering the UK illegally in small boats has more than quadrupled in the last two years.
Those illegally crossing the Channel are not directly fleeing a war-torn country… or persecution… or an imminent threat to life.
They have travelled through safe, European countries.
They are paying people smugglers huge sums to make this dangerous, and sometimes tragic, journey.
The reason that criminal gangs continue to bring small boats over here is because they know that our system can be exploited…
….that once here…illegal migrants can make a multitude of asylum, modern slavery and spurious human rights claims to frustrate their removal.
And the risk remains that those individuals just disappear into the black economy.
That is the reality we must deal with…
And with 100 million people displaced around the world…
….if we do not deal with it now, the situation will just get worse and worse.
People must know that if they come here illegally it will result in their detention and swift removal.
Once this happens – and they know it will happen – they will not come, and the boats will stop.
That is why today we are introducing legislation to make clear that if you come here illegally you can’t claim asylum…
…you can’t benefit from our modern slavery protections…
….you can’t make spurious human rights claims
…and you can’t stay.
We will detain those who come here illegally and then remove them in weeks, either to their own country if it is safe to do so, or to a safe third country like Rwanda.
And once you are removed, you will be banned—as you are in America and Australia—from ever re-entering our country.
This is how we will break the business model of the people smugglers; this is how we will take back control of our borders.
Now, this Bill provides the legal framework needed to deliver this in a way that no other legislation has done before.
This is tough but it is necessary and it is fair.
This legislation will be retrospective.
If you come on a small boat today, the measures in this bill will apply to you.
And this is just part of what we are doing.
I’ve always been clear this is a complex problem that can’t be solved overnight and will require us to use every tool at our disposal.
That’s why I’ve already secured the largest ever small boats deal with France.
And patrols on French beaches are already up 40 per cent.
I also promised progress on enforcement and we’ve increased raids on illegal working by 50 per cent.
I’ve also negotiated a new deal with Albania, which accounted for a third of all small boats arrivals.
And that’s already delivering. We’ve returned 500 illegal migrants to Albania and we are seeing far fewer come as a result.
This shows that there is nothing inevitable about illegal migration.
Deterrence works, and with will and determination, the government can get on top of it—and we will.
Now, this will always be a compassionate and generous country.
It is something that we’re all rightly proud of.
Just look at how we have welcomed Ukrainians, Syrians from refugee camps, and embraced Hong Kongers fleeing the Chinese clampdown.
But the current situation is neither moral nor sustainable. It cannot go on.
It’s completely unfair on the British people…
….who have opened their homes to genuine refugees…
….but are now having to spend nearly £6 million a day to put up illegal migrants in hotels.
It’s unfair on the people who have come to this country legally to see others skipping the queue.
And it’s devastatingly unfair on those who most need our help but can’t get it as our asylum system is being overwhelmed by those travelling illegally across the Channel.
If we can’t stop the boats, our ability to help genuine refugees in future will be constrained.
Full control of our borders will allow us to decide who to help, and to provide safe and legal routes for those most in need.
I understand there will be debate about the toughness of these measures… all I can say is that we have tried it every other way… and it has not worked.
So I say again: my policy is very simple, it is this country—and your government—who should decide who comes here, not criminal gangs.
And I will do whatever is necessary to achieve that.
