Childcare Payments Will Rise 50% For Those On Universal Credit In June

Find out how much you could get to help with childcare.

childcare universal credit payments

by Rhiannon Evans |
Published on

The government has announced the date on which Universal Credits childcare payments will rise, after Chancellor Jeremy Hunt announced the plans in March as part of his 'childcare revolution'.

From June 28, Universal Credit's maximum childcare payments will rise nearly 50% up to £1,630 per month. The additional support is worth up to £522 per month for families and will mean increased support from the government worth a total of £900 million.

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 said they, '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.'

The department is also launching a consultation in England around childcare workers and providers 'to remove unnecessary burdens the childcare sector face'.

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.'

The childcare consultation is being launched by the government in order to try and prepare for the expansion in free hours the Chancellor announce in March.

The announcement promised 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.

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 Claire Coutinho 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.'

To participate in the survey, go to: gov.uk/government/consultations/early-years-foundation-stage-eyfs-regulatory-changes

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