Childcare cash boost could leave working parents up to £1630 a month better off

WORKING parents claiming Universal Credit (UC) could be up to £1630 better off thanks to new changes to childcare payments.

The Department for Work and Pensions (DWP) has raised how much parents on UC can claim for childcare – up to £951 a month for one child and £1630 for two or more children. This is an increase of 47 per cent from the previous limits, which were £646 for one child or £1108 for two or more children.

The UK government is also helping eligible parents cover the costs for the first month of childcare when they enter work or increase their hours.

Those parents will now receive up to 85 per cent of those childcare costs back before their next month’s bills are due – meaning they should have money to pay one month in advance going forward. Until now, many low-income families struggled with upfront childcare bills, making it harder for them to work.

Mel Stride, Secretary of State for Work and Pensions, said: “We are supporting thousands of parents to return to work, progress their careers and boost their finances while making sure they have affordable childcare.

“By removing one of the biggest barriers to work for parents in Britain we are giving families the chance of a better future while doubling down on this government’s pledge to grow the economy and bear down on inflation.”

UK Government Minister for Scotland John Lamont added: "Making childcare more affordable is an important move that will help more parents into work or to increase their hours.

"It's a vital step to achieve our aim of growing the economy and will help take the pressure off families all over Scotland and the rest of the UK."

With over two million parents on UC, the UK government is targeting ways to improve support and empower them to do their bit and help fill the million vacancies across the country.

Helping parents return to work is part of this government’s wider drive to tackle economic inactivity and get Britain working, with the ultimate goal of growing the economy. A total of £3.5 billion has been ploughed into a variety of measures to get people into work.

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