- Universal Credit’s maximum childcare payments will rise
nearly 50% – up to £1,630 per month – from 28 June
- Additional support worth up to £522 a month for families
- Many parents will get help from DWP immediately with their
first bill – instead of in arrears – to help them manage their
budgets
- Comes alongside plans to boost childcare workforce to deliver
historic expansion of free childcare from nine months to the
start of school
As part of the Government’s biggest-ever expansion to childcare
provision, low-income families will be able to access increased
childcare support worth a total of £900 million from 28 June.
Later this month, the Department for Work and
Pensions will raise the amount that parents in Great Britain
can claim back monthly for their childcare costs on Universal
Credit up to £951 for one child and £1,630 for two or more
children. This is a rise of 47% from the previous limits of £646
for one child or £1,108 for two or more children.
At the same time, the Government will help eligible parents cover
the costs for the first month’s childcare when they enter work or
significantly increase their hours, removing one of the most
significant barriers to parents working and helping to grow the
economy.
Those parents will also receive up to 85% 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.
, Secretary of State for Work and Pensions,
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.”
To boost the early years workforce and encourage more people to
consider childcare as a valuable and rewarding career, the
Department for Education is also launching a consultation in
England today to remove unnecessary burdens the childcare sector
face. This follows extensive engagement with the sector to
understand how they can be supported to deploy and train up their
staff most effectively.
This is alongside a package of measures to make sure the
Government’s historic expansion of free childcare is delivered
successfully – with 15 free hours available for working parents
of two-year-olds from April 2024, 15 free hours from nine months
to the start of school available from September 2024, rising to
30 free hours from September 2025.
From September, the hourly rates paid to providers to deliver
free childcare for two-year-olds will increase by 30% from an
average rate of £6 to £8. This represents a significant increase
in funding for early years.
Government will also launch a new recruitment campaign
early next year to attract and retain talent and
consider how to introduce new accelerated apprenticeship and
degree apprenticeship routes so everyone from junior staff to
senior leaders can easily move into a career in the sector.
Minister for Children, Families and Wellbeing said:
“Childcare shouldn’t be a barrier to work, but the expense has
previously meant parents have had to choose between working or
looking after their child.
“We are supporting families with the largest ever expansion of
free childcare, making sure that places will be available for
parents who need them. This will save a working parent using 30
hours a week an average of £6,500.
“We have already announced plans to boost the amount government
pays childcare providers, and now we’re knocking down barriers to
recruiting and retaining the talented staff that provide such
wonderful care for our children.”
This package represents a key pillar of the Government’s drive to
reduce economic inactivity. In total, the 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.
Ends.
Notes to editors
