As of Monday 8 April, parents on Universal Credit
with one child under 17 will be able to claim up to £1,015 a
month, with parents of two children or more eligible for up to
£1,739 to help pay for childcare costs - up from £950 and
£1,630 respectively.
The increase in support will help even more parents into work
at a time when vacancies remain high, wages are rising
faster than inflation, and taxes are being cut for 29 million
hardworking people.
The announcement comes as part of a huge package of support for
working parents, including the expansion of 15 hours of free
childcare a week for eligible working parents of two-year-olds
for the first time.
Over 150,000 two-year-olds are confirmed to have places for 15
hours a week of free childcare as of Friday, surpassing the
take-up expectation set for early April. Thousands more places
will continue to be secured over the coming weeks.
Up to 85% of childcare costs of parents on Universal Credit are
covered thanks to support from the Department for Work and
Pensions, which has increased since last summer by £368 for
parents of one child, and £631 for parents with two or more.
The announcement is part of the government's long-term plan
to give working families a brighter future, by ensuring the cost
of childcare is no longer a barrier for parents who want to
work.
Helping parents into work is one of the best ways to drive down
the number of children living in poverty, as children living in
workless households are over six times more likely to be in
absolute poverty than children in a house where all the adults
work.
Work and Pensions Secretary Mel Stride said:
This big boost to childcare support will help even more parents
step into the world of work and secure long-term financial
security.
We are delivering on our plan to get people into jobs, as we cut
taxes, drive down inflation, and put money back into the pockets
of hardworking families.
When fully rolled out, eligible working parents,
including those on Universal Credit, will receive 30 hours of
free childcare from the end of maternity leave to when their
child starts school. Parents taking up the full 30 hours will
save an average of £6,900 per year on childcare costs.
We are taking significant steps to ensure the childcare sector is
prepared to deliver this rollout, including a £100 million
capital investment for more places, much higher average
government funding rates than the average market rates paid by
parents for the new entitlements, and a significant national
recruitment campaign and £1000 cash incentive for new joiners to
the sector.
In 2024-25 alone, we expect to provide over £1.7 billion to
support local authorities and providers deliver the expansion to
the early years entitlements.
On top of this, almost half a million families are set to benefit
from our changes to the High-Income Child Benefit Charge, taking
170,000 families out of paying the High-Income Child Benefit
Charge altogether with families gaining an average of £1,260 from
these changes.
This includes raising the threshold for the High-Income Child
Benefit Charge from £50,000 to £60,000 as well as halving the
rate so that it is not paid in full until an individual earns
over £80,000. We will also end the unfairness for single earner
families by moving towards a household system.
As well this boost for parents, the £2.5bn Back
to Work plan will help over a million long term unemployed, sick
and disabled people break down barriers to work, with the Chance
to work Guarantee freeing up claimants to try work with no fear
of losing their benefits.
This comes alongside the huge amount of support offered by
Jobcentres to people of all backgrounds. From upskilling,
interview support and finding apprenticeships, whether you're
looking for a new career or just starting in the world of work,
Jobcentres across the country can give you the tools you need to
start, stay and succeed in work.
