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What does the Election result mean for Families?

Our latest Money Mum & Dad financial review will look at what the new political landscape will look like under Sir Keir Starmer and his New Labour party. The labour manifesto promises ‘A future where families come first’ and to focus on child health, saying that this is to be ‘the healthiest generation ever’.

A photo of Daniel Sharpe-Szunko, the author

By Daniel Sharpe-Szunko

Published on: 5 July 2024

5 min read

What does the Election result mean for Families?

Last night’s landslide victory for the Labour party marks a new era in the economic and political landscapes for UK families. The new Labour government has been clear throughout the campaign to ‘Change Britain

The Conservative party defeat will be heralded as one of the worst in history, with the lowest number of votes since 1923. After 14 years in power, the Tory party has lost power in a catastrophic defeat as the British public have clearly lost faith in Rishi Sunak and his government.

Our latest Money Mum & Dad financial review will look at what the new political landscape will look like under Sir Keir Starmer and his New Labour Party. The Labour manifesto promises ‘A future where families come first’ and to focus on child health, saying that this is to be ‘the healthiest generation ever’.

The election result shows the size and scale of the shift away from the Conservatives to the new Labour government.

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60-Second Summary – What does Labours plan to ‘Change Britain’ mean for families?

It’s important for us to focus on how the election results will impact families across the UK and what it means for them financially. The commitment of Sir Keir Starmer throughout his campaign was clear, that his key message was for ‘Change’.

This has resonated with the British public and resulted in one of the biggest Labour wins in history, but what does that mean for families.

  • Childcare and early education plans will fix the system that has been ‘broken by the Tories’, according to the Labour manifesto. It pledges to build by learning how childcare works in other areas of the world, from Ireland to Australia.
  • Raise £8bn of revenue by changing rules for ‘non-dom tax status for wealthy people’, clamping down on tax avoidance, remove VAT exemption for private schools, and introduce a new windfall tax on big energy companies.
  • Build 300,000 new houses every year for the next 5 years and to deliver 1.5m new homes, which is the highest rate of house building since the 1960’s.
  • Fix the NHS waiting times crisis by delivering 40,000 more operations, scans, and appointments every week in England. Labour promises to introduce weekend services and to utilise private healthcare sector to tackle the problem.

The Labour party campaign has been built on the promise to ‘Change Britain’ and is steeped in a history of helping working class families. Sir Keir Starmer has committed to building a better future for Britain which means possible positive changes for the average household.

How Labour did it: key moments from the UK 2024 general election night

The biggest change for parents will be the overhaul of the ‘broken childcare’ and early education system under the Conservative reign. Other major changes to education will see an end to VAT exemption for private schools and a significant increase in costs for wealthier families.

Labour also promises to improve child health in the next generation as well as putting an end to child poverty. It has also claimed that the average household has been £5,883 worse off under the Conservatives and Rishi Sunak since 2019.

It has been one of the key messages throughout the campaign that Labour would aim to significantly improve the current childcare and early education system. It believes that the system under the Conservatives was ‘broken’ and in need of a major overhaul to bring us in line with other global communities.

Key changes in childcare and early education:

Childcare will be available and accessible with plans to build 3,000 new nurseries across England to increase access to childcare for families. It intends to convert unused high school classrooms in to ‘quality spaces for nurseries’.

This is to be funded by introducing VAT on private education and putting an end to restrictions that prevent local authorities from offering their own childcare.

Childcare will support our children to achieve and thrive through plans to deliver 500K more children to hit their Early Learning goals by 2030. Labour intends to focus on providing greater support for language skills and mathematics learning at the very beginning of a childs education.

Labour also intends to support education workers and childcare staff by recognising them for the critical role that they play.

Make childcare affordable by delivering several improvements to the entitlements that the government offers to working families. It intends to make changes to the system and to help 750,000 more parents to get back to work after having a child.

Childcare will continue after your children have started school with plans to introduce ‘free breakfast clubs’ for every primary school in England. This is to help to increase attendance levels which will improve standards and behaviours for our children, and increase attainment levels.

This is aimed towards helping parents to start their working days earlier and make sure that they can work the hours that they need to so they can thrive.

One of the main changes in the education system and in its plans to raise funds to pay for public education, Labour plans to end VAT exemption for Private Education. Under the Conservative government it had emphasised its support for private schools by not charging VAT.

Currently there are around 7% of children in the UK attending private schools, paying an average of £15,000 a year. Some schools with boarding facilities can charge as much as £50,000, which is currently VAT exempt.

Labour plans to incur VAT on private school fees which would in turn pay for 6,500 more teachers in England’s state schools. The new tax charge is expected to raise somewhere in the region of £1.6bn per year  to help fund public schools.

The UK housing economy has been struggling to hit its targets for building new homes for decades. On average there have been 152,000 new homes built in the past decade which is significantly short of the Conservative parties commitment to the British public.

Labour has committed to increase new home construction to 300,000 per year for the next 5 years, making a total of 1.5m new homes. This is the highest rate of construction in the UK since the 1960’s which is a tough ask in any economy.

Two of the main contributing factors to the issues in hitting the governments targets for home building are, over complicated planning rules and high land prices. The ambitious plans would be heavily reliant on the housing associations and local councils, both of which are significantly lower than the levels that would be required.

NHS waiting times have been a major part of all the different party manifestos over the past several months. There has been a big emphasis on how the parties will tackle the crisis being faced by the NHS and clearing the backlogs from the Pandemic.

Labour has proposed plans to create 40,000 more appointments, scans, and operations during its tenure. This increase would seem only small as it represents just 2% more than the current levels, but experts suggest that this would be enough to get things back on track.

It is unclear how Labour plans to tackle the problem, but it has committed to increase the budget rate above inflation from the current 4%.

More news and updates to follow as we get more clarification on the plans laid out by the Labour party.

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