The Department for Work and Pensions (DWP) is offering financial assistance to working parents to cover up to 85% of their childcare costs.
This initiative aims to alleviate the financial burden on families with young children by providing substantial support through Universal Credit.
Eligible parents could receive up to £1,768.94 for childcare expenses, depending on the number of children they are responsible for.
This move follows an increase in Universal Credit payments by 1.7% this month, with the DWP extending its support to working parents.
The maximum claimable amount varies based on the number of children, and it is designed to assist in maintaining a balance between work and family responsibilities.
How Much Can You Claim?
According to government guidelines, parents with one child can claim up to £1,031.88 per month, while those with two or more children can receive a maximum of £1,768.94.
The support applies to children under the age of 16 and covers a wide range of childcare services, including nurseries, childminders, after-school clubs, and even holiday clubs. Importantly, the childcare provider must be registered with the appropriate authorities.
To apply for this support, parents must submit a claim through their Universal Credit account, reporting childcare costs as soon as they are paid.
Claims for up to three months of past childcare costs can be submitted, though it is recommended that parents apply as soon as possible to avoid missing out on reimbursements.
Payments are made monthly and are based on the claimant’s assessment period under Universal Credit, rather than as a lump sum.
Eligibility Criteria for Parents and Caregivers
The childcare costs element of Universal Credit is available to a wide range of eligible individuals. Parents must be employed or have a confirmed job offer, and the number of hours worked is not a determining factor.
For households with two parents, both must be employed unless one is unable to care for the children due to a health condition or disability.
Additionally, the scheme is not limited to those employed full-time. Parents on statutory sick pay, statutory maternity or paternity leave, and other similar allowances may also qualify.
As part of the Universal Credit system, this payment is subject to deductions based on savings, debts, and other factors, such as a taper rate of 55%. This rate means that for every pound earned, 55p is deducted from the maximum Universal Credit payment.
Overall, this policy is a significant step towards helping working families manage their childcare expenses, reflecting ongoing efforts to reduce financial pressures on those balancing work and family life.
