Universal Credit childcare payments increase
Good news for parents on Universal Credit – your potential claim for childcare costs has increased by almost 50%. Support is also available to help with the first month of childcare. Future initiatives have been planned, including free childcare to help working parents. These initiatives will help parents progress their careers and increase their finances
Read on to find out more!
You can now claim more for monthly childcare costs
The Department for Work and Pensions (DWP) has increased 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 of £646 for one child and £1,108 for two or more children.
Starting work or looking to increase your working hours?
Further support with childcare costs is now available for parents wanting to start work or increase their working hours. You can claim up to 85% of your first month’s childcare costs back before the next month’s bills are due. This means that parents should be able to pay a month in advance going forwards.
Coming soon…
- In September 2023 – hourly rates paid to providers delivering the Government’s free childcare offer for two-year-olds will increase by 30%, up to an average rate of £8.
- From April 2024 – 15 free hours childcare available for working parents of two-year-old children
- From September 2024 – 15 free hours childcare available for working parents of children from nine months.
- From September 2025 – 30 free hours childcare available for working parents of children from nine months to the start of school.
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Find out more:
You may be surprised at what support is available to you – from free childcare hours to Universal Credit and Tax Credit claims for childcare, find out exactly what you may be eligible for on the Childcare Choices website.