Some of the poorest people in the UK are set to get a big boost to help them with a rise in Universal Credit childcare payments. From today (June 28) the amount goes up by almost 50 per cent to £951 for one child or £1,630 for two or more children.
Those parents will now receive up to 85% of those childcare costs back before their next month’s bills are due – meaning they should have money to pay one month in advance going forward. Until now, many low-income families struggled with upfront childcare bills, making it harder for them to work.
Parents on Universal Credit will be able to claim back monthly for their childcare costs for one child of £951, in contrast to the previous total of £646 - a rise of £305. They will also be able to claim back from £1,108 to £1,630 - a rise of £522 - for two or more children.
The Government is also helping eligible parents cover the costs for the first month of childcare when they enter work or increase their hours. 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.”
With over two million parents on Universal Credit, the Government is targeting ways to improve support and empower them to do their bit and help fill the million vacancies across the country. In addition, the hourly rates paid to providers to deliver the Government’s free childcare offer for two-year-olds will increase by 30% in September, up to an average rate of £8.
While from April 2024 there will be 15 free hours childcare available for working parents of two-year-olds, followed by 15 free hours from nine months in September 2024, and finally 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.”
If you need help to check if you are eligible for childcare costs, you can:
- contact Universal Credit
- ask at a jobcentre
