Childcare payments rise by nearly 50 per cent for families on Universal Credit

12:15, Wednesday, 28th June 2023

Working families who get help with their childcare costs through Universal Credit are now able to access increased support with their childcare bill and can claim hundreds of pounds more in childcare payments.

From today, the Government raised the amount that parents on Universal Credit in Great Britain can claim back each month for their childcare costs.

Parents can now claim up to £951 for one child and £1,630 for two or more children. This is a rise of 47 per cent from the previous limits of £646 for one child or £1,108 for two or more children.

Also, families who are eligible will now receive upfront, immediate support with their childcare costs, removing one of the most significant barriers to parents working.

Due to the new changes the Government will help parents cover the costs for the first month’s childcare when they enter work or significantly increase their hours, which was previously paid in arrears.

Those parents will also receive up to 85 per cent of their childcare costs back before their next month’s bills are due –providing families with the money to pay one month in advance going forward.

Cllr Rob Waltham, leader of North Lincolnshire Council said: “The extensive package of changes and investment being made by the Government to the childcare provision will indeed help thousands of parents get into work, return to work, progress in their career, and earn more.

“The new measures will slash the cost of childcare for working families and will have a direct impact on the expendable cash that people have in their pockets.”

The Governments childcare expansion package also includes the plans to:

Extend the offer of 15 funded hours to working parents of two-year-olds from April 2024.

Make the 15 hours available to working families with children from nine months to the start of school from September 2024, rising to 30 free hours from September 2025.

Fund schools and local authorities to increase the supply of wraparound care so all parents of school-age children can drop their children off between 8am and 6pm.

Increase the hourly rates paid to providers to deliver free childcare for two-year-olds from September.

Launch a new recruitment campaign to attract and retain talent within the education sector. Including the introduction of new accelerated apprenticeship and degree apprenticeship routes so people can easily move into a career within early years.

Cllr Rob Waltham, leader of North Lincolnshire Council added: “This will assist in the growth of the economy, remove barriers for people wanting to work whilst ensuring that children receive a high quality of care.

“We already work with local Ofsted registered childcare providers that provide funded childcare for children aged two, three and four and will support in ensuring this offer extends to younger children.”

People can find out more on the GOV.UK website.