The Department for Work and Pensions is making a significant change to Universal Credit in order to provide more assistance to working parents who are struggling. Families will receive a cash boost of hundreds of pounds, beginning this week, as, claim amounts increase.
The monthly amount parents can claim back for their childcare costs on Universal Credit will increase from £646 to £951 for one child - a rise of £305. The amount for two or more children will go up from £1,108 to £1,630 - a rise of £522.
Birmingham Live reports that the new amounts come into effect from June 28 and the government describes it as its "biggest expansion to childcare provision". Eligible parents who return to work or significantly increase their hours will be able to claim back up to 85 per cent of their childcare costs before their next month's bills are due, meaning they can use that money to pay a month in advance going forward.