Chancellor Jeremy Hunt announces state-funded childcare reforms in budget to help more parents back to work

The government has extended provision of free childcare to one and two-year-olds, saying it will help get more parents back to work, as part of an overall drive to increase the workforce.

Chancellor Jeremy Hunt confirmed what had been heavily trailed when he set out the government’s blueprint to help the country’s economy recover in a budget set against the backdrop of a cost-of-living crisis and industrial unrest.

Childcare costs have been increasing in recent years to a point where some have claimed that it is so prohibitive that it was not worth returning to work.

There was also good news on energy bills, with the announcement of an extension to the scheme to help households.

The Energy Price Guarantee scheme will continue for a further three months after April, when it was due to end. It is thought that declining energy costs have made the extension viable.

Mr Hunt said he recognised that families were still struggling with high bills.

"This measure will help save average families a further £160 on top of the energy support measures already announced," he told the Commons.

The chancellor also unveiled a £63m fund to keep public pools and leisure centres afloat.

In what he described as a 'Brexit Pubs Guarantee' he said duty on draft beer would be up to 11 pence lower than in supermarkets – which drew from cheers Conservative backbenchers.

There was mixed news for businesses with no overall change in the corporation tax.

There will, however, be a new £200m fund for regeneration projects while the amount spent on fixing potholes would rise from £500m to £700m.

"This measure will help save average families a further £160 on top of the energy support measures already announced"

On defence spending, the government will add a total of £11bn over the next five years and it would be nearly 2.25% of GDP by 2025.

On nuclear energy, he said he was launching "Great British Nuclear" aimed at bringing down the costs of producing nuclear power.

He also said there would be a competition for small modular reactors - and says the government will co-fund the technology if it is found to be viable.

On pensions, he said that the lifetime allowance would be abolished.

On reforms to childcare, he said too many women took a career break (to have a child) that became a career end.

He pledged that schools would all offer some kind of wraparound support by 2026.