Universal Credit maximum childcare payments set to rise by nearly 50%

Parents receiving Universal Credit who have substantial childcare costs will be eligible to claim hundreds of pounds more in assistance each month.

The UK government has announced that parents claiming Universal Credit will receive hundreds of pounds more from the end of June.

The Department for Work and Pensions (DWP) is set to raise the amount parents can claim by almost 50% from 28 June, marking a significant increase in support for families across the country.

The changes, first announced by Chancellor Jeremy Hunt in this year’s budget, will see the amount that can be claimed rise from £646 for one child to £951, and from £1,108 for two or more children to £1,630.

This represents a substantial uplift in the financial support available to parents, helping to ease the burden of childcare costs.

In addition to this, parents will also be able to claim 85% of their payments upfront, a change from the current system where parents have to pay for childcare and then reclaim the costs as benefits.

The measures form part of a wider package of childcare support designed to help parents get back to work.

By increasing the financial assistance available to parents, the UK government aims to remove barriers to employment and stimulate economic growth.

Mel Stride, Secretary of State for Work and Pensions, said:

“These changes will help thousands of parents progress their career without compromising the quality of the care that their children receive.”

”By helping more parents to re-enter and progress in work, we will be able to cut inactivity and help grow the economy.”