Parents on Universal Credit given childcare boost worth up to £1,630 from today

27 June 2023 , 23:01

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The amount parents on Universal Credit can claim back for childcare costs will rise from today (Image: Shared Content Unit)

Parents on Universal Credit will be able to claim back up to £1,630 for childcare costs from the Department for Work and Pensions (DWP) from today.

First announced back in the Spring Statement, the maximum amount parents on Universal Credit can claim back each month for their childcare costs has gone up by 47%.

This increase will let parents claim back £951 for one child and £1,630 for two or more children.

This is an increase from the previous caps of £646 for one child or £1,108 for two or more children.

The move will give those eligible up to an extra £522 a month.

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Alongside this, parents will now also get extra support with the first month’s childcare costs when they start work or increase their hours

From today, these parents will 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.

The DWP says the changes will help the over two million Universal Credit parents who are on the benefit.

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 Government says the extra childcare support for low-income households is worth a total of £900million.

In order to support this change, the Government are also working to recruit more Brits into the early year's workforce and are consulting on ways they can encourage more people to join,

The Government also unveiled a package of measures which would give new parents 15 free hours of childcare from when their baby is nine months to the start of school available from September 2024, rising to 30 free hours from September 2025.

Claire Coutinho, minister for children, families and wellbeing 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.

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“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.”

Ruby Flanagan