The Department for Work and Pensions is making a significant change to Universal Credit in order to provide more assistance to working parents who are struggling. Families will receive a cash boost of hundreds of pounds, beginning this week, as, claim amounts increase.
The monthly amount parents can claim back for their childcare costs on Universal Credit will increase from £646 to £951 for one child - a rise of £305. The amount for two or more children will go up from £1,108 to £1,630 - a rise of £522.
Birmingham Live reports that the new amounts come into effect from June 28 and the government describes it as its "biggest expansion to childcare provision". Eligible parents who return to work or significantly increase their hours will be able to claim back up to 85 per cent of their childcare costs before their next month's bills are due, meaning they can use that money to pay a month in advance going forward.
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Childcare costs have, in the past, always been given back later which often means parents on low incomes would have to find hundreds of pounds upfront to pay childcare providers, and then ask the DWP to refund the money. Many parents have been unable to find these upfront costs from their limited resources.
Minister for Children, Families and Wellbeing, Claire Coutinho said: "Childcare shouldn't be a barrier to work, but the expense has previously meant parents have had to choose between working or looking after their child. We are supporting families with the largest-ever expansion of free childcare, making sure that places will be available for parents who need them.
"This will save a working parent using 30 hours a week an average of £6,500."
