Universal Credit claimants with children will be receiving more money to assist with the cost of childcare from the end of this month. The Department for Work and Pensions (DWP) will be raising the maximum amount that parents on Universal Credit can claim back monthly for their childcare costs from Wednesday, June 28.
Parents with one child will be able to claim back £951 and £1,630 for two or more children, thanks to the expected increase. This is a significant rise from the current figures of £646 for one child or £1,108 for two or more children.
The 47 per cent increase will put up to an extra £522 a month into the pockets of those eligible. In addition to the rise, the Government has said it will assist eligible parents in covering the costs of the first month's childcare when they enter work or significantly increase their hours, The Mirror reports.
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The move is anticipated to assist those finding it difficult to get a job or struggling with debt under the current system as a result of large upfront costs. Parents will also continue to receive up to 85 per cent of their childcare costs back before next months bills are due - meaning they should have money to pay one month in advance going forward.
The extra childcare support for low-income households is worth a total of £900million. Claire Coutinho, minister for children, families and wellbeing, 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.
"We have already announced plans to boost the amount Government pays childcare providers, and now we’re knocking down barriers to recruiting and retaining the talented staff that provide such wonderful care for our children."
The move was announced in the Spring Budget and forms part of the Government's plan to get more people back into work and grow the economy. The Government also revealed a package of measures which would provide new parents with 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.
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