Parents on Universal Credit (UC) who want to work or increase their hours are being held “prisoners to the high cost of childcare”, MPs have warned. Support for childcare costs through the benefit is only enough to cover part-time hours and is stopping parents from working for longer, according to a report from the Work and Pensions Committee.
Those on UC can get back up to 85% of a £760 monthly childcare bill for one child – a maximum of £646.35 a month. The £760 cap on total costs eligible for support has remained the same since 2005 and is “long overdue” a reassessment, the MPs said.
This only covers around 27 hours a week, the committee said, making it difficult for parents to move beyond part-time work. The Committee is calling for this to be uprated to better reflect the cost of childcare.
