Money Matters: Universal Credit childcare payments update
In this week's Money Matters column, Wrekin's Debt & Energy Manager Dan Bebbington discusses how parents on Universal Credit are set to receive more support with their childcare bills.
The highest amount parents on Universal Credit (UC) can claim to help with childcare costs is set to increase by nearly 50 per cent later this month.
From June 28th, families could receive a significant rise in support, with the maximum monthly payment available reaching £1,630 – an increase of up to £522 each month.
In a further change to ease the financial burden on parents, the Department for Work and Pensions (DWP) has announced that instead of receiving support in arrears, many will now benefit from immediate assistance with their first childcare bill.
The aim is to enable families to better manage their budgets, with the measures forming part of the largest-ever expansion to childcare provision.
The new DWP guidelines will allow parents across Great Britain who receive UC to claim up to £951 per month towards childcare for one child and £1,630 for two or more children.
It marks a 47 per cent increase from the previous limits of £646 for one child or £1,108 for two or more children.
The government will help eligible parents to cover the costs for the first month’s childcare when they enter work or significantly increase their hours.
They will also receive up to 85 per cent of their childcare costs back before their next month’s bills are due – meaning they should have money to pay one month in advance going forward.
It follows a previous announcement regarding the expansion of free childcare, which will see working parents of two-year-olds receive 15 free hours from April next year.
From September 2024, this will extend to 15 free hours for children from the age of nine months until they start school, rising to 30 free hours from September 2025.
For further information, please visit:
Help paying for childcare: Universal Credit and childcare - GOV.UK (www.gov.uk)
6th June 2023