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.
Mel Stride, 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.
Responding to a Department for Work and Pensions announcement of an expansion to childcare provision, Cllr Louise Gittins, Chair of the LGA’s Children and Young People Board, said:
“Access to childcare is vital for all families, especially for those on the lowest incomes, the most disadvantaged children, women and single-parent families.
“We are pleased that the Government has moved to increase Universal Credit’s maximum childcare payment, which is something the LGA has long called for, and are also glad action is being taken around recruitment and retention, with councils concerned about provider closures, but this action is needed now.
“However, these proposed changes will have to be managed carefully to ensure that a focus on high quality education, alongside the focus on childcare, remains. We await further information regarding the rollout of the expanded childcare offer and funding attached to it.”
