George Osborne confirmed that there would be new tax-free childcare vouchers for working families, with 20 per cent off the first £6,000 of childcare costs for each child and increased childcare support for low-income working families on universal credit.
Other key points included:
- The schools and NHS budgets will be protected, but most Government departments will have their budgets cut by 1% in the next two years
- £11.5 billion in more cuts in 2015-167 Spending Review
- Public sector pay rises will continue to be capped at 1% for 2014-16
- New employment allowance will mean National Insurance cuts of £2,000 for all businesses and no NI contributions for some 450,000 small businesses.