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The chancellor will promise to provide 30 hours of childcare a week to parents of one and two-year-olds, Sky News has learned.

The multi-billion pound announcement is set to be made in Wednesday’s “back to work” budget.

Families with children aged one and two do not currently receive support after parental leave ends and before free nursery hours are offered for three and four-year-olds.

Politics live: Chancellor to deliver a ‘back to work’ budget

Extending the provision could form a central plank in Jeremy Hunt’s pitch of helping with the cost of living and getting parents into work, according to Sky News’ political editor Beth Rigby.

UK childcare costs are among the most expensive in the world, with full-time fees for a child under two at nursery reaching an average of £269 a week last year – equivalent to around £14,000 annually.

Last month, the Early Years Alliance told Sky News nursery fees are expected to increase even further, going up by an average of 8% – higher than in previous years.

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Key numbers to watch ahead of the budget

Responding to the expected funding boost, the organisation said that while it appears positive, “as always the devil is in the detail”.

Chief executive Neil Leitch said: “We know that the sector is facing its most challenging time in decades – settings are closing at record levels, there is a severe recruitment and retention crisis, and costs continue to soar.

“Unless the government puts in safeguards to ensure that funding for all early entitlement offers continues to meet the sharply rising costs of delivering places, not only now but in the future, what is currently a crisis will end up in catastrophe.”

Childcare has emerged as a key political battleground in the run-up to the next election, with Labour vowing to overhaul the “broken system”.

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Nursery providers in England have also raised concerns about underfunding, with complaints about the lack of government investment.

Currently all families of three and four-years-old qualify for 15 hours of free childcare a week, over 38 weeks, while households can qualify for 30 hours of free childcare if parents earn the equivalent of 16 hours a week at the national minimum or living wage.

Tory MPs have been pressing the chancellor to make childcare more affordable to reduce pressure on families and enable more women to re-enter the workforce.

The government is expected to pledge £4bn to expand free provision to one and two-year-olds, with details on where the money will come from to be laid out on Wednesday.

Budget graphic

Labour MP Stella Creasy claimed that is only half of what would be needed, tweeting: “If this is true, it’s asking childcare providers to offer more hours at a loss as it’s only half the money needed to deliver this promise. (It) would be the same as (the) help to buy scheme which pushed up house prices because it didn’t increase supply.”

Paul Johnson, director of the Institute for Fiscal Studies, said that many would welcome the announcement but warned the “whole system is hugely complex”.

“As universal support has expanded, targeted support for children most in need has contracted,” he wrote.

What else is expected in Wednesday’s budget?

Mr Hunt is expected to announce a package of measures to help parents, including changing the rules so that those on Universal Credit are given more childcare and provided with the funding upfront.

The Treasury is also believed to be planning a cash injection of hundreds of millions into increasing the availability of the 30 hours of free childcare to three to four-year-olds.

Read More:
Jeremy Hunt is set to deliver his first budget – here are the things to look out for

Plans are also being considered to loosen staff to child ratios for two-year-olds, which could make the cost of childcare a little cheaper.

However, Mr Leitch called on the government to “re-think this shameful plan”, saying: “At a time when we finally seem to be making some progress, policies that undermine the quality of care and education that children receive are the last thing we need.”

Few other “big bangs” are expected on Wednesday, with Mr Hunt likely to focus on measures to support the government’s plan to halve inflation, grow the economy and reduce public debt.

Central to that will be a package of measures to try to shift parents, the sick, disabled and older workers back into jobs.

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Are Tory voters losing confidence?

Announcements on energy bill support, benefits reform and pensions allowances are all expected, though Mr Hunt is likely to resist calls from Conservative backbenchers to go further on tax cuts.

Among some of the expected announcements:

• Insiders in the Treasury say there will be two parts to Mr Hunt’s budget: a short-term support plan to provide immediate relief on the cost of living crisis and then a long-term plan for growth.

• The government is expected to extend the £2,500 energy price guarantee for another three months from April (where there had been a planned rise to £3,000) to give people support on their bills.

• Action is also expected on prepayment meters with the chancellor set to use the Budget to scrap so-called “prepayment premium” from July.

• There will be a package of measures to try to encourage the over-50s, long-term sick and disabled people, and benefits claimants back into the workplace.

• The chancellor is expected to raise the lifetime allowance for pension savings from £1m to an expected £1.8m – a record level – in order to try to incentivise doctors and other professionals out of retirement and back into work.

• Mr Hunt could also lift the annual tax-free allowance for pensions from £40,000 to £60,000. It would cost £2bn a year.

• It is believed that the planned increase in corporation tax from 19p to 25p in April will go ahead and that the chancellor will offer business tax breaks to try to encourage growth instead.

• There is likely to also be policies targeting artificial intelligence, green energy and advanced manufacturing as part of the government’s long-term plan for growth.

The fiscal package comes in the wake of the autumn statement last November, which saw the chancellor hike taxes as he and Rishi Sunak sought to restore UK financial credibility after Liz Truss’ short-lived premiership.

Labour has said that the budget is an opportunity for the government to show some “real ambition” after years of “managed decline”.

Mr Hunt is expected to reference the “difficult decisions” taken to stabilise the markets following his predecessor’s disastrous mini-budget, as he sets out a road-map for the country’s economic future.

The chancellor is expected to say on Wednesday: “Today, we deliver the next part of our plan: a budget for growth.

“Not just growth from emerging out of a downturn.

“But long term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people… all whilst making our country one of the most prosperous in the world.”

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UK weather: Water shortfall declared ‘nationally significant’ – as amber heat health alert set to strike

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UK weather: Water shortfall declared 'nationally significant' - as amber heat health alert set to strike

The water shortfall situation in England has been described as a “nationally significant incident”, with five areas officially in drought ahead of an amber heat health alert coming into force for large parts of the country.

Six further areas are experiencing prolonged dry weather following the driest six months to July since 1976.

Many river flows and water reservoir levels in England continue to recede compared to June despite some storms and showers in July, which helped mask that it was still the fifth-warmest July on record.

A drone view from June shows vehicles using a bridge to pass over a dry section of the Woodhead Reservoir. Pic: Reuters
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A drone view from June shows vehicles using a bridge to pass over a dry section of the Woodhead Reservoir. Pic: Reuters

A general view of Lindley reservoir near Otley in West Yorkshire with low water levels in June. Pic: PA
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A general view of Lindley reservoir near Otley in West Yorkshire with low water levels in June. Pic: PA

Drier conditions have returned in August and now parts of the country are bracing for the fourth heatwave 2025, with today’s amber alert covering the East Midlands, West Midlands, East of England, London, and the South East.

Temperatures are forecast to rise above 30C (86F) in some areas, possibly even soaring past 35C (95F) in the south, threatening this year’s heat record of 35.8C (95.4F) in Faversham, Kent, on 1 July.

A milder yellow heat health alert is in place for the South West, North East, North West, Yorkshire and The Humber.

The alerts by the UK Health Security Agency (UKHSA) are due to be in place from 9am today until 6pm tomorrow, and put more pressure on struggling public water supplies and navigational waterways.

Check the weather forecast where you are

People enjoy the weather in Barnes on Monday. Pic: PA
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People enjoy the weather in Barnes on Monday. Pic: PA

A man stands on a paddleboard with his dog near the beach at Rhos-on-Sea, Wales. Pic: Reuters
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A man stands on a paddleboard with his dog near the beach at Rhos-on-Sea, Wales. Pic: Reuters

‘We are calling on everyone to play their part’

The National Drought Group (NDG), which includes the Met Office, government, regulators, water companies, the National Farmers’ Union, Canal & River Trust, anglers, and conservation experts, met at the start of the week to highlight the water-saving measures each sector is taking.

The group praised the public for reducing their daily usage, after Yorkshire Water reported a 10% reduction in domestic demand following the introduction of their hosepipe ban, which saved up to 80 million litres per day.

“The situation is nationally significant, and we are calling on everyone to play their part and help reduce the pressure on our water environment,” said Helen Wakeham, NDG chair and director of water at the Environment Agency.

“Water companies must continue to quickly fix leaks and lead the way in saving water.

“We know the challenges farmers are facing and will continue to work with them, other land users, and businesses to ensure everyone acts sustainably.”

Current drought situation in England

– Drought has been declared in: Yorkshire, Cumbria and Lancashire, Greater Manchester Merseyside and Cheshire, East Midlands, West Midlands.

– Areas in prolonged dry weather (the phase before drought) are: Northeast, Lincolnshire and Northamptonshire, East Anglia, Thames, Wessex, Solent and South Downs.

– Yorkshire Water has a hosepipe ban in place for all its customers, while Thames, South East, and Southern Water have postcode-specific bans.

– Reservoirs fell by 2% last week and are now 67.7% full on average across England. The average for the first week of August is 80.5%.

– The lowest reservoirs are Blithfield (49.1%), Derwent Valley (47.2%), Chew Valley Lake (48.3%), Blagdon (46.3%).

– Rainfall in July was 89% of the long-term average for the month across England. This is the sixth consecutive month of below-average rainfall.

– Across the country, 51% of river flows were normal, with the rest below normal, notably low or exceptionally low.

– Two rivers – Wye and Ely Ouse – were the lowest on record for July.

– There are currently navigation closures or restrictions across sections of the Leeds and Liverpool, Macclesfield, Trent and Mersey, Peak Forest, Rochdale, Oxford and Grand Union Canal.

The rainfall at the end of July was welcomed by growers, even though the dry weather is set to have an impact on the harvest, with the National Farmers Union (NFU) noting how water shortages have impacted the growing season.

“Some farms are reporting a significant drop in yields, which is financially devastating for the farm business and could have impacts for the UK’s overall harvest,” NFU vice-president Rachel Hallos said.

Ms Hallos urged that investment in water infrastructure and a more effective planning system was urgently needed “to avoid the swing between extreme drought and flooding and to secure water supplies for food production”.

Read more:
What is a heat-health alert?
How heatwaves affect your health

Where are hosepipe bans in place?

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Drought in England explained

The dry weather also impacts the health of the waterways, as low water levels reduce oxygen levels in the water, which can lead to fish deaths, more algae growth, and could prevent wildlife from moving up or downstream.

Water minister Emma Hardy said the government is “urgently stepping up its response” to respond to dry weather, including investment in new reservoirs, but called on firms to do their bit.

“Water companies must now take action to follow their drought plans,” she said.

“I will hold them to account if they delay.”

Tips for staying cool from the UKHSA

  • Close windows and curtains in rooms that face the sun
  • Seek shade and cover up outside
  • Use sunscreen, wear a hat and sunglasses
  • Keep out of the sun at the hottest times, between 11am and 3pm
  • Restrict physical activity to the cooler mornings or evenings
  • Know how to respond to heat exhaustion and heatstroke

“We face a growing water shortage in the next decade,” the minister warned, which she said is why building new reservoirs – something the government has criticised the previous administration for not doing – is so important.

The hot and dry conditions have also led to warnings of wildfires, following blazes near Wimborne in Dorset and at Edinburgh’s Arthur’s Seat over the weekend.

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House of Lords under fire for dropping rule that once caught out cricket legend and historian

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House of Lords under fire for dropping rule that once caught out cricket legend and historian

Campaigners have criticised a change to the rules around declarations of interest in the House of Lords as a “retrograde step” which will lead to a “significant loss of transparency”. 

Since 2000, peers have had to register a list of “non-financial interests” – which includes declaring unpaid but often important roles like being a director, trustee, or chair of a company, think tank or charity.

But that requirement was dropped in April despite staff concerns.

Tom Brake, director of Unlock Democracy, and a former Liberal Democrat MP, wants to see the decision reversed.

“It’s a retrograde step,” he said. “I think we’ve got a significant loss of transparency and accountability and that is bad news for the public.

“More than 25 years ago, the Committee on Standards in Public Life identified that there was a need for peers to register non-financial interests because that could influence their decisions. I’m confused as to what’s happened in the last 25 years that now means this requirement can be scrapped.

“This process seems to be all about making matters simpler for peers, rather than what the code of conduct is supposed to do, which is to boost the public’s confidence.”

Westminster Accounts: Search for your MP

MPs and peers alike have long faced scrutiny over their interests outside Westminster. File pic
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MPs and peers alike have long faced scrutiny over their interests outside Westminster. File pic

Rules were too ‘burdensome’, say peers

The change was part of an overhaul of the code of conduct which aimed to “shorten and clarify” the rules for peers.

The House of Lords Conduct Committee argued that updating non-financial interests was “disproportionately burdensome” with “minor and inadvertent errors” causing “large numbers of complaints”.

As a result, the register of Lords interests shrunk in size from 432 pages to 275.

MPs have a different code of conduct, which requires them to declare any formal unpaid positions or other non-financial interests which may be an influence.

A source told Sky News there is real concern among some Lords’ staff about the implications of the change.

Non-financial interest declarations have previously highlighted cases where a peer’s involvement in a think tank or lobbying group overlapped with a paid role.

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Protesters disrupt House of Lords

Cricket legend among peers to breach code

There are also examples where a peer’s non-financial interest declaration has prompted an investigation – revealing a financial interest which should have been declared instead.

In 2023, Lord Skidelsky was found to have breached the code after registering his role as chair of a charity’s trustees as a non-financial interest.

Lord Skidelsky. Pic: UK Parliament
Image:
Lord Skidelsky. Pic: UK Parliament

The Commissioner for Standards investigated after questions were raised about the charity, the Centre for Global Studies.

He concluded that the charity – which was funded by two Russian businessmen – only existed to support Lord Skidelsky’s work, and had paid his staff’s salaries for over 12 years.

In 2021, Lord Botham – the England cricket legend – was found to have breached the code after registering a non-financial interest as an unpaid company director.

The company’s accounts subsequently revealed he and his wife had benefitted from a director’s loan of nearly £200,000. It was considered a minor breach and he apologised.

Former cricketer Lord Botham. File pic: PA
Image:
Former cricketer Lord Botham. File pic: PA

‘Follow the money’

Lord Eric Pickles, the former chair of the anti-corruption watchdog, the Advisory Committee on Business Appointments, believes focusing on financial interests makes the register more transparent.

“My view is always to follow the money. Everything else on a register is camouflage,” he said.

“Restricting the register to financial reward will give peers little wriggle room. I know this is counterintuitive, but the less there is on the register, the more scrutiny there will be on the crucial things.”

Lord Eric Pickles
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Lord Eric Pickles

‘I was shocked’

The SNP want the House of Lords to be scrapped, and has no peers of its own. Deputy Westminster leader Pete Wishart MP is deeply concerned by the changes.

“I was actually quite horrified and quite shocked,” he said.

“This is an institution that’s got no democratic accountability, it’s a job for life. If anything, members of the House of Lords should be regulated and judged by a higher standard than us in the House of Commons – and what’s happened is exactly the opposite.”

Public confidence in the Lords is already at a low ebb after the PPE controversy surrounding Baroness Michelle Mone, who took a leave of absence in 2022.

Michelle Mone attends the state opening of parliament in 2019. Pic: Reuters
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Michelle Mone attends the state opening of parliament in 2019. Pic: Reuters

The government has pledged to reform the House of Lords and is currently trying to push through a bill abolishing the 92 remaining hereditary peers, which will return to the House of Commons in September.

But just before recess the bill was amended in the Lords so that they can remain as members until retirement or death. It’s a change which is unlikely to be supported by MPs.

Read more from Sky News:
Warning over water shortfall

Trump gaffe speaks volumes

MPs and peers alike have long faced scrutiny over their interests outside Westminster. File pic
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MPs and peers alike have long faced scrutiny over their interests outside Westminster. File pic

A spokesperson for the House of Lords said: “Maintaining public confidence in the House of Lords is a key objective of the code of conduct. To ensure that, the code includes rigorous rules requiring the registration and declaration of all relevant financial interests held by members of the House of Lords.

“Public confidence relies, above all, on transparency over the financial interests that may influence members’ conduct. This change helps ensure the rules regarding registration of interests are understandable, enforceable and focused on the key areas of public concern.

“Members may still declare non-financial interests in debate, where they consider them directly relevant, to inform the House and wider public.

“The Conduct Committee is appointed to review the code of conduct, and it will continue to keep all issues under review. During its review of the code of conduct, the committee considered written evidence from both Unlock Democracy and Transparency International UK, among others.”

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Man who plotted to murder gang member involved in record-breaking heist attacked in prison

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Man who plotted to murder gang member involved in record-breaking heist attacked in prison

A man jailed for plotting to murder a member of the gang that carried out Britain’s biggest-ever cash robbery has been attacked in prison.

Daniel Kelly, 46, was one of three men found guilty of conspiring to murder Paul Allen, 46, who was shot twice as he stood in his kitchen in Woodford, east London, on 11 July 2019.

The attack left the former cage fighter – who was a member of the Securitas heist gang that stole £54m from a cash depot in Tonbridge, Kent, in 2006 – paralysed from the chest down.

Paul Allen was jailed for 18 years over the Securitas heist. Pic: PA
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Paul Allen was jailed for 18 years over the Securitas heist. Pic: PA

Paul Allen was in the kitchen when he was shot. Pic: Met Police
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Paul Allen was in the kitchen when he was shot. Pic: Met Police

Kelly was sentenced to 36 years in prison, with an extra five years on licence, at the Old Bailey in April.

Louis Ahearne, 36, was jailed for 33 years, and his brother Stewart Ahearne, 46, was jailed for 30 years over the shooting, likened by detectives to “the plot [of] a Hollywood blockbuster”.

A source told Sky News that Kelly was attacked by another prisoner who tried to slit his throat on his arrival to Frankland prison, in County Durham, last week.

“Danny is a gunman happy to shoot people but not scary with his hands. He’s a dead man walking in jail,” they said.

HMP Frankland in Durham
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HMP Frankland in Durham

Read more from Sky News:
Trump gaffe speaks volumes
UK facing ‘significant’ water shortfall

It is understood Kelly suffered only minor injuries and the Prison Service is treating the attack as a minor incident.

Allen was living in a large detached rented house with his partner and three young children after being released from an 18-year prison sentence over the Securitas raid when he was shot.

In her sentencing remarks, Judge Sarah Whitehouse KC said she believed the three men convicted “were motivated by a promise of financial gain”, but she had “no doubt” others were involved.

The day before the shooting, Kelly and Louis Ahearne used a rented car to carry out a burglary in Kent, accessing the gated community by pretending to be police officers.

A month before that, Kelly and the Ahearnes stole more than $3.5m (£2.78m) worth of Ming dynasty antiques from the Museum of Far Eastern Arts in Geneva, for which the brothers had been jailed in Switzerland.

Kelly is also wanted in Japan over the robbery of a Tokyo jewellery store in 2015 in which a security guard was punched in the face – but extradition proceedings have been put on hold while he serves his sentence.

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