A court has said that Universal Credit rules are unlawful and discriminate against women.
Tens of thousands of people who claim Universal Credit could see a major change thanks to the ruling today.
The case was brought by Nichola Salvato, 49, a benefits advisor from Brighton.
After moving in 2019 she had to cut her hours and borrow £2,000 to cope with childcare costs for her 12-year-old daughter, reports The Mirror.
The court has now ruled that it is unlawful to make Universal Credit claimants pay for childcare first, then reclaim the costs.
Nichola said: “It seemed ridiculous that the most hard-up families getting help for childcare costs through Universal Credit had to find the money for childcare costs upfront, sometimes thousands of pounds per month.
“While better off families earning up to £200,000 per year got help for their childcare costs in advance through the tax free system.
“It is such a clear barrier into work”.
Parents on Universal Credit can claim 85% of the cost of childcare, up to a cap of £646 per month, for each child under 16.
But they must pay up-front and claim the costs back later.
Mr Justice Chamberlain backed Nichola’s claim that the rules were “irrational” and contrary to Article 14 (discrimination) of the European Convention on Human Rights.
He said the rules making Nichola prove she had already paid - rather than prove she’d run up a bill - “contributed materially to making her financially worse off”, and added to a "cycle of debt” and "psychological effects".
The judge went on to say that because most people claiming childcare costs are female, “the decision has a disproportionate effect on women”.
