Families across the country will be hoping for a helping hand as Labour announces its first budget in almost 15 years.

Parents, particularly those on lower incomes, have felt the pinch of the cost of living crisis over the past few years, with many struggling to pay increased food and fuel costs, plus spiralling nursery fees.

What can families hope for tomorrow? Here are some changes that could be made.

Child benefit cap

The current system has been criticised for being unfair to households with one high-earning parent. In short, if both parents earn just under the threshold they can claim for the full amount of child benefit. 

However, if either earns more than this, they will have to pay some or all of the benefit back to the Government in the form of the high-income child benefit charge.

At the last budget, this cap was increased from £50,000 to £60,000 a year, with a tapering system until an individual earns £80,000.

For example, in a household where two parents earn £60,000 – with a total household income of £120,000 – they can get the full child benefit.

But if a household has one parent who earns £61,000, their child benefit will be be reduced, and cut altogether once they earn more than £80,000.

There have been discussions about changing this to a household income under £120,000, rather than just looking at individual wages.

30 hours free childcare

Working parents of children in England from nine months old will be eligible for 30 hours of free childcare a week from September 2025. This will require  £1.8 billion in funding, with a further £15 million of capital funding for school-based nurseries.

But, like Child Benefit, there's a cap, and any one parent crossing the £100,000 earnings threshold can actually leave them worse-off due to the impact on childcare costs.

Once an individual earns £100,000 – or if one person earns this in a couple – they lose half the 30 hours a week of free childcare available to three and four-year-olds.
Again, there are suggestions that system could be reformed to look at a household income, rather than individual wages.

Although all three and four-year-olds are entitled to some free childcare across the UK, different schemes operate in Scotland, Wales and Northern Ireland.

There is a similar earning cap in Wales, with The Childcare Offer for Wales covering at least 10 hours of early education and up to 20 hours of childcare outside of this for three and four year olds, if each parent earns under £100,000.

Scotland offers 30 hours a week during term time (or 22 all-year-round) of funded childcare to all three and four year olds and eligible two year olds, regardless of their parents’ working status.

Universal Credit changes

According to reports Labour has been considering lowering the cap on deductions that can be taken from benefit payments by up to £420 a year. If it goes ahead it could benefit 1.2 million households around the country, including 700,000 families with children.

The new Fair Repayment Rate could cap deductions at 15 per cent rather than the current 25 per cent.

Schools funding

Reports suggest £1.4 billion will be announced to rebuild crumbling schools. The budget is also expected to include more cash for free breakfast clubs,  tripling investment to over £30 million next year.

It is expected that the 10-year school rebuilding programme will continue, including many schools that have been identified as having dangerous RAAC concrete.

But there is no word yet on whether much-needed extra funding for SEND and extra teaching assistants will be announced.