- Universal Credit childcare payments rise today by almost 50%,
up to £951 for one child or £1,630 for two or more children
- Many parents will now also get extra support with first
month’s childcare costs when they start work or increase their
hours
- New support adds to Government’s wider plans to help parents
into work and part of Prime Minister’s priority to grow the
economy
As part of one of the Prime Minister’s five key priorities to
grow the economy, low-earning parents on Universal Credit are set
to benefit from up to a £522 monthly boost to cover childcare
costs – making it easier for them to get back to work or increase
their hours.
The Department for Work and Pensions (DWP) has raised how much
parents on Universal Credit can claim for childcare – up to £951
a month for one child and £1,630 for two or more children. This
is an increase of 47% from the previous limits, which were £646
for one child or £1,108 for two or more children.
The Government is also helping eligible parents cover the costs
for the first month of childcare when they enter work or increase
their hours.
Those parents will now receive up to 85% of those childcare costs
back before their next month’s bills are due – meaning they
should have money to pay one month in advance going forward.
Until now, many low-income families struggled with upfront
childcare bills, making it harder for them to work.
, Secretary of State for Work and Pensions,
said:
“We are supporting thousands of parents to return to work,
progress their careers and boost their finances while making sure
they have affordable childcare.
“By removing one of the biggest barriers to work for parents in
Britain we are giving families the chance of a better future
while doubling down on this government’s pledge to grow the
economy and bear down on inflation.”
With over two million parents on Universal Credit, the Government
is targeting ways to improve support and empower them to do their
bit and help fill the million vacancies across the country.
As part of the biggest changes to childcare ever made, the
Government is also seeking to boost the early years workforce,
and is now consulting on ways to encourage more people to
consider childcare as a career, like through new apprenticeship
routes.
In addition, the hourly rates paid to providers to deliver the
Government’s free childcare offer for two-year-olds will increase
by 30% in September, up to an average rate of £8.
While from April 2024 there will be 15 free hours childcare
available for working parents of two-year-olds, followed by 15
free hours from nine months in September 2024, and finally 30
free hours from nine months to the start of school from September
2025.
Minister for Children, Families and Wellbeing said:
“We are delivering the largest ever expansion of free early
education in England to make sure parents are able to access the
high-quality, affordable childcare that they need.
“A working parent using 30 hours of childcare a week could save
an average of £6,500 a year thanks to the new free hours offer
alone.
“Parents might be surprised just how much support they’re
eligible for – check all the details on our dedicated Childcare
Choices website.”
Helping parents return to work is part of this Government’s wider
drive to tackle economic inactivity and get Britain working,
directly linked to one of the Prime Minister’s key priorities to
grow the economy. The Government has invested £3.5 billion to get
people into work, including these childcare measures and specific
schemes targeted at supporting jobseekers on Universal Credit
into work and towards prosperity.
Ends.
Notes to editors
- Please find a link to the EYFS consultation here: gov.uk/government/consultations/early-years-foundation-stage-eyfs-regulatory-changes
- The £3.5 billion investment over five years to boost
workforce participation and grow the economy includes:
-
- £2 billion investment in support for disabled people and
people with long-term health conditions.
- £900 million investment in support for parents on
Universal Credit.
- £70 million investment in support for over-50s.
- £485 million investment in support for unemployed people
and people who are on Universal Credit and working fewer than
full time hours.
