What's happening?

For Jeremy Hunt, yesterday was a big day.

Last year, he became the chancellor of the exchequerThe chancellor of the Exchequer, often just called the chancellor, is the UK government's chief finance minister. They are in charge of taxation and government spending and borrowing. - the person in charge of Britain's money. And yesterday, he stood up in front of the country's politiciansSomeone whose job it is to be involved in running a country. Politicians try to persuade people they have the best ideas to run the country. and explained how he plans to spend it.

The yearly speech is called "the budgetA plan for income and spending over a certain time period. ". Politicians had a chance to ask questions about where the country's money is coming from, and how it is spent.

Here are some of the key points:

Childcare: There will be 30 hours of free childcare for children aged between nine months and five years old. Hunt hopes that this will mean that more parents start working again.

Find out more

Energy: Energy bills have gone up after RussiaThe largest country in the world by area. It has a population of 144 million people. invaded UkraineA country in Eastern Europe. It was invaded by Russia in February 2022. . This is because lots of countries used to buy oil and gas from Russia, but now they have stopped - so prices for energy from other places have gone up. Hunt said that people will get help paying for energy for three more months.

Tax: People will have to pay more taxMoney workers pay to the government to pay for services like roads and hospitals. on alcohol and tobaccoA substance smoked in cigarettes. It contains nicotine, which is addictive. . Companies will pay more tax too, but people saving up for their pensionsA regular income paid by a government or a financial organisation to someone who no longer works, usually because of their age or health. will pay less.

Defence: Over the next five years, £11bn more will be spent on defence.

In the last year, people in Britain have struggled as prices and the cost of livingThe money that someone needs to afford basic food, housing and clothes. rose. Hunt hopes to solve these problems.

Yes! More people will go back to work, helping the country's economyThe way that money flows through a country, which affects wages and the cost of living.. And expertsSomeone who knows a lot about a particular subject. think prices will fall soon.

No! These changes are too small to make a big difference. Britain's economy has big problems. It will take more than free childcare to fix them.