Parents on Universal Credit are having to turn down work and are being pushed into debt due to high childcare costs, MPs have warned.
Support for childcare costs through Universal Credit is only enough to cover part-time hours and is stopping people from working for longer, according to a report from the Work and Pensions Committee. Those receiving the benefit 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.
