Working parents who claim Universal Credit are expected to get more help to pay for childcare costs in Wednesday's budget, in a move that could save families hundreds of pounds.
Reports suggest Chancellor Jeremy Hunt will announce that the Government is set to start paying childcare costs up front, after charities have warned the current scheme of paying and claiming a refund risks people getting into debt. There are around 5.8m people who claim Universal Credit, and 40% of those are in employment
Currently, those who work and have their wages topped up by Universal Credit are eligible to claim up to 85% of their childcare costs back from the Government, but the costs have to be paid upfront and parents then have to claim a refund. With average full-time nursery fees costs running at around £263 per week and £228 for a childminder, according to the National Childbirth Trust (NCT), parents can struggle to return to work as they have to find the first month's fees in advance before getting any support.
