Parents who claim Universal Credit could be entitled to more than £20,800 in childcare support following recent changes.
This is thanks to the Government awarding a 6.7 per cent increase to support, in line with the rate hike for other Department for Work and Pensions (DWP) benefits.
From this week, those on Universal Credit with one child under 17 will be able to claim up to £1,015 a month, up from £950.
If a parent has two or more children, the amount in childcare support provided has been raised from £1,630 to £1,739.
Hypothetically, a parent claiming childcare support in this situation would be in receipt of around £20,860 a year.
According to the DWP, this increased support will assist parents more in getting into work with the announcement alongside a wider package.
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Universal Credit claimants could be entitled to a sizable amount in childcare support
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The package includes the expansion of 15 hours of free childcare a week for eligible working parents of two-year-olds for the first time.
Work and Pensions Secretary Mel Stride explained: “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.”
Once this support is completely rolled out, eligible working parents, including those on Universal Credit, will receive 30 hours of free childcare.
This enhanced support will be available from the end of someone’s maternity leave to when their child starts school.
Parents who opt to take the full 30 hours will save an average of £6,900 per year on childcare costs, the DWP reports.
More than 150,000 two-year-olds are confirmed to have places for 15 hours a week of free childcare as the end of last week.
This has exceeded the Government’s previous take-up predictions for early April with thousands of more places expected to be secured in the weeks to come.
Up to 85 per cent of childcare costs for parents claiming Universal Credit are covered through support made available by the DWP.
Since last summer, this amount has risen by £368 for parents of one child, and £631 for parents with two or more.
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Calls to reform Universal Credit are taking place PAHelen Dickinson OBE, the chief executive of the British Retail Consortium, previously issued her support for the Government’s commitment to support parents getting back into work.
She said: “The cost of childcare remains one of the biggest challenges to many parents, preventing many who wish to re-enter the workforce.
“As the largest private sector employer, we welcome the expansion of childcare provision that is being rolled out.
"The support it will offer to many of our colleagues and potential colleagues, now and in the future.”
