Labour’s Shadow Early Years Minister, , has called on the
Government to use the budget to fix a problem with Universal
Credit that is driving working parents with children into
thousands of pounds worth of debt.
Parents on Universal Credit are having to pay large amounts
of money for childcare long before they can claim back financial
support from the government, and this is pushing many families
into debt. Labour is calling for the Government to announce a
change in how this support is provided in the budget on Wednesday
so that parents don’t have to pay upfront for childcare
costs.
This follows news over the weekend that Nichola Salvato, a
single mother who is taking the Department for Work and Pensions
after being forced into debt by the policy, has been granted a
judicial review on the grounds that the current system
discriminates against women. This case is expected to be heard in
the High Court later on this year.
, Labour's Shadow Minister
for Early
Years, said:
"It is shocking that parents on low incomes are being
forced to stump up huge sums for
childcare, waiting at
least a month for the support they are entitled
to. We know from many
heart-breaking cases that this is driving families into poverty
and debt.
“Childcare costs have soared under the Tories, so it is
more important than ever that
parents can access
the childcare they need without falling in to debt. The
Government must urgently fix this dangerous flaw in Universal
Credit.
“By fixing this problem in the budget on Wednesday,
Ministers could help millions of working families and avoid the
humiliation of defending this appalling policy in the High
Court.”
ENDS
Notes to editors
-
Whilst parents on Universal Credit can claim up to 85% of
monthly childcare costs up to £646, they must pay childcare
providers up-front and only receive money back to cover this in
arrears if they put in a claim.
-
A number of children’s charities have been campaigning to
change the system so that financial support for childcare costs
through Universal Credit are paid directly to the provider.
Save the Children and Gingerbread are supporting Nichola
Salvato’s judicial review of the policy. You
can read more about the campaign
here: https://blogs.savethechildren.org.uk/2019/07/childcare-under-universal-credit/
