13/06/2023 - Permalink

News from our partners: Universal Credit maximum childcare payments to rise from 28 June

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News from our partners Department for Work and Pensions (DWP)

Universal Credit’s maximum childcare payments will rise by 47% – up to £1,630 per month – from Monday 28 June 2023.

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Universal Credit childcare support payments to rise – infographic

  • Additional support worth up to £522 a month for families
  • Many parents will get help from the Department for Work and Pensions (DWP) immediately with their first bill – instead of in arrears – to help them manage their budgets
  • Comes alongside plans to boost childcare workforce to deliver historic expansion of free childcare from nine months to the start of school.

As part of the Government’s biggest ever expansion to childcare provision, low-income families will be able to access increased childcare support worth a total of £900 million from Monday 28 June 2023.

Later this month, DWP 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, and £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.

To boost the early years workforce, and encourage more people to consider childcare as a valuable and rewarding career, the Department for Education is also launching a consultation in England today to remove unnecessary burdens the childcare sector faces. This follows extensive engagement with the sector to understand how they can be supported to deploy and train up their staff most effectively.

This is alongside a package of measures to make sure the Government’s historic expansion of free childcare is delivered successfully: with 15 free hours available for working parents of two-year-olds from April 2024, 15 free hours from nine months to the start of school available from September 2024, rising to 30 free hours from September 2025.

From September 2023, the hourly rates paid to providers to deliver free childcare for two-year-olds will increase by 30% from an average rate of £6 to £8. This represents a significant increase in funding for early years.

The Government will also launch a new recruitment campaign in early 2024 to attract and retain talent, and will consider how to introduce new accelerated apprenticeship and degree apprenticeship routes so everyone from junior staff to senior leaders can easily move into a career in the sector.

This package represents a key pillar of the Government’s drive to reduce economic inactivity. In total, the Government is investing £3.5 billion over five years to boost workforce participation, including helping as many people as possible, such as parents, into work, which will in turn grow the economy.

Please find a link to the Early Years Foundation Stage consultation here: gov.uk/government/consultations/early-years-foundation-stage-eyfs-regulatory-changes