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Daily Mirror
Daily Mirror
Business
Ruby Flanagan

Families on Universal Credit to get childcare costs paid upfront in major help for parents

Universal Credit claimants are set to see two major changes announced during the Spring Budget this week.

The first announcement on Wednesday is set to give parents claiming the benefit more support with childcare costs.

Under the plans set to be announced, parents eligible for help will be given childcare funding upfront.

Currently, people in England, Scotland and Wales who are eligible for support pay their childcare costs upfront and then claim a refund of 85% of the full costs.

The maximum amount parents can claim for childcare is also expected to be increased by a few hundred pounds.

The maximum cap for monthly claims has remained unchanged at £646 for one child and £1,108 for two for the last 18 years.

This is now predicted to increase to £950 for a single child and £1,680 for two, although an exact figure has not been confirmed.

However, the budget will also contain more obligations on such parents to search for work and there will be a general tightening of sanctions aimed at those on welfare.

Over the last few years, several groups have come forward demanding for a change in the system saying that the current system does not support parents as they have to find the money upfront before receiving any help.

According to the review site Day Nurseries, the average cost of sending a child under two to a nursery for 25 hours per week, which is part-time, is around £7,729 per year in 2023.

This cost doubled if the child was in full time care.

The Local Government Association (LGA), the main body for councils in England, has recently backed a significant increase in the cap in line with inflation.

Another announcement expected to be made by the Chancellor is that benefit claimants will be asked to attend more work coach meetings and attend skills boot camps to help them get back to work.

This will be part of the Government's "Back to Work" programme.

The plan will also aim to get more over-50s in employment as well as people with disabilities and long-term illnesses.

The Telegraph reports the boot camps will be run in conjunction with local employers, and people will be encouraged to learn skills, particularly in areas where there is a shortage in the labour market, such as construction and technology.

For those with disabilities, the Government is expected to scrap the existing work capability assessment which would allow disabled people who feel they can work some hours, to be able to do so without losing their benefits.

The Chancellor has pre-announced a series of key measures which aim to boost the UK workforce, which he argues will encourage growth that could allow for tax cuts later on.

In a statement he said: "For many people, there are barriers preventing them from moving into work – lack of skills, a disability or health condition, or having been out of the jobs market for an extended period of time.

"I want this back-to-work Budget to break down these barriers and help people find jobs that are right for them."

"We need to plug the skills gaps and give people the qualifications, support and incentives they need to get into work."

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