Universal credit childcare funding to rise 47% from June
Parents on universal credit will be able claim hundreds of pounds more to cover childcare costs from the end of June, the government has announced.
The government will allow parents on the benefit to claim back 951 for childcare costs for one and 1,630 for two or more children - a 47% increase.
The policy was announced as part of the 2023 Budget and applies across Britain.
Labour said the plans did not go far enough and there would be no increase in childcare workers this year.
At the moment, people in England, Scotland and Wales who are eligible for support pay childcare costs upfront and then claim a refund.
Until now the amount parents on universal credit could claim had been frozen at 646-a-month per child for several years. Meanwhile, the cost of childcare increased by 44% since 2010, according to analysis from the Trades Union Congress.
- Why is childcare so expensive?
- More childcare help for universal credit claimants n
The government announced it will also support eligible parents with their first month of childcare costs when they either enter work or increase their hours, by providing childcare funding upfront. Those parents will receive up to 85% of their childcare costs back before their next month's bills are due.