Universal credit: Parents can claim more of their childcare costs

Working families on Universal Credit will get a cash boost from Wednesday as childcare payments rise 47% in England, Scotland and Wales.

The increase means parents can claim up to £951 a month for one child, or £1,630 for two or more children, to help cover childcare costs while working.

Work and Pensions Secretary Mel Stride says the change will remove “one of the biggest barriers parents face at work”.

Labor say plans don’t go far enough.

Working parents who qualify for support prepay their childcare costs and can then claim a refund – but the maximum for a child has been set at £646 per month since 2016.

The amount hasn’t kept pace with rising childcare costs, leaving some parents unable to work as much as they’d like, according to a report by a committee of MPs last December.

The increase announced in the 2023 budget is billed as part of the government’s strategy for economic growth.

Ministers say improving support for the more than two million parents on Universal Credit will encourage them to find work, fill vacancies and enable businesses to grow.

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