Martin Lewis has warned parents not to make a wrong move as they look to take advantage of new government childcare promises.
The Money Saving Expert has tonight given his verdict on the Chancellor's Budget announcement on Wednesday.
Chancellor Jeremy Hunt yesterday announced a range of new tax, benefits and energy measures.
He vowed to offer 30 hours of free childcare for all children aged over nine months old in a bid to boost economic growth by encouraging parents back to work.
The maximum that parents on Universal Credit can claim for childcare will increase from £646 to £951 for one child. It goes from £1,108 to £1,630 for two, an increase of just under 50 per cent.
Martin says he understands why childcare is hot topic but told Brits they must not switch from tax credits to Universal Credit without being absolutely sure it's the right move.
He has issued a warning to parents on tax credits that they must get a one-on-one benefit advice before shifting to Universal Credit to claim free childcare.
Speaking on the Martin Lewis Money Show Live tonight, he said: “The Universal Credit childcare cap is about to rise this summer.
“It’s going up about 50 per cent. For new applicants, it is going to be paid up front which is good news.
“Many people struggle to find that first months’ worth of income. It does not apply to those people on tax credits, the legacy benefits.
“So what this means is that if you have heavy childcare costs, and you are on tax credits, that it will be worth you shifting across to universal credit.
“But - and it’s a big but - the problem with that is that there are other issues, such as deductions that can be made which could be a problem.
“So even if a web calculator says it’s worth it, go and get a one-on-one benefits advisor to work it out for you.
“Because once you shift, you can’t come back.”
The budget has been hailed as a boost for families but concerned Mirror readers are less-than-impressed that it does little to ease the UK's financial woes.
The ITV presenter thanked the government for postponing the 20% rise in energy price guarantee, adding “in practice it’s cancelled.”
He also said he is "delighted" to say that the Energy Price Guarantee is not going to rise by 20% in April as it was meant to.
The money expert said energy prices will stay "roughly flat" in April - and hopes they will drop in July once the price cap gets cheaper.
Millions of disabled Brits are going to be "supported" back into work in "biggest" welfare shake-up in a decade, it was announced on Wednesday.
The Chancellor shared his "Back to Work" plan in the Spring Budget with the news that the Work Capability Assessment for benefits will be scrapped.
Instead, people will face an assessment that asks them what sort of work they think they could do.
The change will impact those claiming both Universal Credit and Personal Independent Payment.
The Government said in the future the "only" health and disability assessment will be the PIP assessment.
For those without a health condition and claiming Universal Credit, sanctions will be applied more "rigorously" for those who do not meet strict work-search requirements.
This will also affect those who choose not to take up a reasonable job offer.
For those working low hours, the Administrative Earnings Threshold will rise from 15 hours to 18 hours at the National Living Wage.
