Childcare costs have rocketed so much that parents are now actively avoiding work to escape nursery fees.
Latest figures show the weekly cost of care currently averages at £210 a week for a full time child under two, or £280 in London.
But what help is available and how much financial aid can you get to cover these costs?
In the UK, there are two schemes - tax-free childcare and 30 hours free childcare - to help you.
However Universal Credit claimants can also get up to 85% of their childcare costs back, up to a monthly limit of £646.35 for one child or £1,108.04 for two or more children.
These childcare costs can only be claimed for a dependent child up to the 31 August following the child’s 16th birthday.
Here's how it works.
Universal Credit and childcare
You can only get Universal Credit childcare costs if you, or both you and your partner:
- are in paid work, or have accepted an offer of paid work
- pay for childcare for the relevant child or young person
Childcare costs may also be paid if 1 partner is working and the other can’t look after the child or children because they:
- have limited capability for work or limited capability for work and work related activity
- care for a severely disabled adult or severely disabled child
- are temporarily absent from the household (for example, in hospital, residential care or in custody)
If you're off work for health reasons or are on maternity, paternity or shared parental leave, you may also qualify.
You can use more than 1 childcare provider. However, to get Universal Credit childcare costs, the childcare you pay for must be provided by a registered childcare provider .
This generally means the childcare provider is registered with OFSTED, The Care Inspectorate or Care and Social Services Inspectorate for Wales (CSSIW).
When you first claim Universal Credit childcare costs you’ll need to provide the childcare provider's registration number and details, the full cost of the care and any joint parental arrangements you have in place.
If you qualify, your childcare costs will be paid alongside your Universal Credit payment at the end of your assessment period.
But be aware, the amount you get will be based on the assessment period - so however much you pay during this time will reflect how much you get until the next assessment peropd.
When childcare costs can’t be paid
If part of your childcare costs are paid for by someone else (for example by an employer or through a work programme or scheme) you can only claim the remaining balance which is the amount that you, or you and your partner actually pay.
However, you may still be entitled to get either 15 hours or 30 hours free childcare, and Universal Credit may be able to pay towards any remaining childcare costs.
You won't, however, be able to claim Universal Credit support alongside tax free childcare.
Have you experienced an issue with Universal Credit? Get in touch: emma.munbodh@mirror.co.uk.
