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Chancellor Hunt Extends Childcare, Scraps Energy Surcharges, But Housing Crisis Looms

Hunt's plan boosts childcare support and eases energy costs for low-income households. But charities caution that the housing crisis, expected to worsen, may leave vulnerable families struggling to afford a place to live.

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There are brick houses, pipes, blue gate, ladder, bicycles, red car and trees at the back.
There are brick houses, pipes, blue gate, ladder, bicycles, red car and trees at the back.

Chancellor Hunt Extends Childcare, Scraps Energy Surcharges, But Housing Crisis Looms

Chancellor Jeremy Hunt today outlined plans to tackle the economic crisis, including extending childcare and scrapping energy surcharges. However, charities warn that the housing crisis remains unaddressed, with low-income families still struggling.

Hunt announced that the 'pre-payment premium' for energy customers using prepayment metres will be abolished from July. This move aims to ease the burden on low-income households, who are disproportionately affected by higher energy costs.

The Chancellor also revealed plans to extend funded childcare to children as young as nine months from September 2025. Currently, government support for childcare starts at the age of two. This extension is expected to benefit working families and help reduce childcare costs.

Despite these measures, charities like the Joseph Rowntree Foundation (JRF) remain concerned. They criticize the government for not addressing the housing crisis, which is expected to worsen with forecasts of a drop in housebuilding and increasing rent and mortgage pressures. Low-income families, already struggling with energy bills and other costs, may find it even harder to afford a place to live.

The energy price guarantee, which caps the average household energy bill at £2,500, will remain in place until July 2023. This measure, introduced in response to soaring energy prices, is estimated to save the average family £160 and cost the treasury around £3bn.

Today's fiscal statement from Chancellor Hunt included welcome measures to support low-income households with energy bills and childcare costs. However, the housing crisis continues to pose a significant challenge, with charities warning that more action is needed to protect vulnerable families.

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