The amount of childcare that families on benefits can claim back will increase by hundreds of pounds from the end of this month under new UK Government’s plans to tackle inactivity and help grow the economy. The Department for Work and Pensions (DWP) is set to raise the amount on June 28, which means parents eligible for help through Universal Credit will be able to claim back 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. The UK Government will also support eligible parents with their first month of childcare costs when they either enter work or increase their hours, by providing childcare funding upfront.
Those parents will receive up to 85 per cent of their childcare costs back before their next month’s bills are due.
Work and Pensions Secretary Mel Stride MP, said: “These changes will help thousands of parents progress their career without compromising the quality of the care that their children receive.
“By helping more parents to re-enter and progress in work, we will be able to cut inactivity and help grow the economy.”
The package represents a key pillar of the UK Government’s drive to reduce economic inactivity. In total, the UK Government is investing £3.5 billion over five years to boost workforce participation, including helping as many people as possible, such as parents, into work which will in turn grow the economy.
The latest figures from the DWP show that at the end of January 2023 there were 5.9 million people claiming Universal Credit. The means-tested benefit is a payment designed to help people on a low income, out of work, or if they cannot work due to ill health or caring responsibilities.
Help to claim Universal Credit
People can claim Universal Credit directly online or via the dedicated Universal Credit Migration Notice helpline for free on 0800 169 0328 or by visiting your local jobcentre.
Claimants that require more time to claim can also call DWP for free on 0800 169 0328.
For those who need additional support to complete their application, Citizens Advice Scotland’s Help to Claim service provides free, confidential and impartial advice along with a step-by-step guide to the claims process.
Find out more on the website here.
To keep up to date with the latest benefits news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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