Increases in how much some parents can claim for childcare are set to come into effect this week. The changes will impact parents who claim universal credit and claim money back for childcare.
Announced earlier this year by the Department for Work and Pensions (DWP), the move will apply to the childcare elements of universal credit, through which parents claim money for childcare expenses every month.
For parents it will mean an increase of almost 50% in the amount you can claim. Under the changes, parents will also be able to claim 85% of their payments upfront rather than having to pay for childcare and then reclaim the costs as benefits.
Read more: The date Martin Lewis says you should take a meter reading by as energy prices set to fall
Here's everything you need to know about the upcoming changes to the childcare element of universal credit including how much extra you'll get and when the changes come in. To get all the latest money-saving news straight to your inbox twice a week sign up here.
What is the childcare element of universal credit?
You might be able to claim some of your childcare costs if you already get universal credit. You (and your partner if you live with them) will usually need to either:
- be working – it does not matter how many hours you or your partner work
- have a job offer
When is this changing and how much more will I get?
The DWP is raising the amount parents get from Wednesday, June 28 when some will see an increase of hundreds of pounds in their bank accounts. The UK Government says the move is part of plans to tackle inactivity and help grow the economy.
From this date the monthly amounts you can claim will increase in the following way:
- If you have one child - £951 up from £636 a month
- If you have two or more children - £1,630 up from £1,108
Speaking previously about the changes, Work and pensions secretary Mel Stride said: “These changes will help thousands of parents progress their career without compromising the quality of the care that their children receive. By helping more parents to re-enter and progress in work we will be able to cut inactivity and help grow the economy.”
