Universal Credit claimants can get an extra £522 a MONTH under shake up this week

The maximum amount a person can claim will rise to £1,630, up from £1,108 for families with two or more children.

Single child households will be able to claim £951, whereas before the the limit was £646.

The Government will also give a hand to eligible parents to cover the costs for the first month's childcare when they enter work or increase their hours significantly.

Those who receive this help will be able to claim back up to 85 per cent of their childcare costs before their next month's bills are due.

Childcare is one of the most significant barriers preventing parents from re-entering the workforce, with this help they should have the money to pay the next month's care in advance.

Secretary of State for Work and Pensions, Mel Stride, said: "These changes will help thousands of parents progress their career without compromising the quality of the care that their children receive."

The change comes with the announcement that millions of Universal Credit claimants will be able to secure £600 per year towards their savings.

The Government launched an initiative called the Help to Save to encourage people on benefits to save money, with the running of the scheme extended until April 2025.

Low income earners are being encouraged to open a Help to Save account. For every £1 put into the account, the Government will boost it by 50p up to a certain amount.

An estimated three million people could still benefit from the scheme. For those who start now, putting £50 in an account every month would mean that £600 could be claimed when the initiative ends.

So far 359,200 have opened an account since launch. To be eligible Britons have to be receiving Working Tax Credit, Child Tax Credit (alongside Working Tax Credit) or Universal Credit and your take-home pay was £658.64 or more in your last monthly assessment period.

Guidance by the Department for Work and Pensions explains: "If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account."

"Your Help to Save bonuses will not affect your Universal Credit payments. Any savings or bonuses you earn through Help to Save will not affect how much Working Tax Credit you get."

"If you or your partner have £6,000 or less in personal savings, this will not affect how much Housing Benefit you get. This includes any savings in your Help to Save account."