Parents receiving Universal Credit will see a major increase in their payments from today resulting in up to £522 extra a month.
Universal Credit childcare cost payments are rising by 47 per cent today which means working parents will be able to receive up to £951 for one child or £1,630 for two or more children every month to cover the cost of childcare while working. The Department for Work and Pensions (DWP).
Previously, childcare payments were capped at £646 for one child or £1,108 for two or more children. The government is also helping parents cover the cost for the first month of childcare when they either enter work or increase their hours offering up to 85 per cent of childcare costs back before monthly bills are due.
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Mel Stride, Secretary of State for Work and Pensions, said: “We are supporting thousands of parents to return to work, progress their careers and boost their finances while making sure they have affordable childcare. By removing one of the biggest barriers to work for parents in Britain we are giving families the chance of a better future while doubling down on this government’s pledge to grow the economy and bear down on inflation.”
The scheme is expected to benefit over two million parents receiving Universal Credit. Meanwhile, the hourly rates paid to providers who deliver the free childcare offer for two-year-olds will increase by 30 per cent in September, rising from an average rate of £8.
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Another addition to the scheme in April 2024 will see in the inclusion of 15 free hours of childcare for working parents of two-year-olds, followed by 15 free hours from nine months in September 2024, and then 30 free hours from nine months to the start of school from September 2025.
Minister for Children, Families and Wellbeing Claire Coutinho said: “We are delivering the largest ever expansion of free early education in England to make sure parents are able to access the high-quality, affordable childcare that they need. A working parent using 30 hours of childcare a week could save an average of £6,500 a year thanks to the new free hours offer alone.
“Parents might be surprised just how much support they’re eligible for – check all the details on our dedicated Childcare Choices website.”
