Universal Credit’s maximum childcare payments will rise nearly 50% 

From the 28 June 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.

Childcare isn’t changing for those who get working tax credits 

There are no changes to the provision of childcare for those who claim working tax credits. If you pay for approved childcare and receive working tax credits you can currently claim up to £122.50 a week for one child, and £210 a week for two or more children

Some may be better off switching to Universal Credit as a result of the changes but make sure you carefully research this first, as once you’ve switched you can’t reverse this decision


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