Universal Credit claimants who have children could receive a boost worth up to £522 a month from this week.
From Wednesday, June 28, the Department for Work and Pensions (DWP) will raise the maximum amount that parents on Universal Credit can claim back monthly for their childcare costs.
The amount parents can claim back will rise to £951 for one child and £1,630 for two or more children.
This is an increase from the previous caps of £646 for one child or £1,108 for two or more children.
The DWP said the 47% rise will give those eligible up to an extra £522 a month.
Alongside this, some parents will also be paid upfront for their childcare costs.
This would cover the costs of the first month’s childcare when they newly enter work or significantly increase their hours.
The Sun recently reported that there wasn't a minimum amount of working hours claimants needed to qualify for the change.
Instead, the DWP said parents only needed to increase their hours by "at least a few hours more every week".
This move is designed to help those struggling to take on a job or getting into debt under the current system due to the hefty upfront costs.
Claimants who want to up their work hours or start work will need to consider that they may need to alter or up their childcare hours.
Before doing this, you should speak to your work coach to make sure you qualify for the upfront childcare cost support.
The DWP has also told The Sun that other external factors like debt and deductions won't be taken into account when assessing if someone is eligible for upfront childcare payments.
However, parents will continue to receive up to 85% of their childcare costs back before next month's bills are due - meaning they should have money to pay one month in advance going forward.
The Money Saving Expert website recently urged parents of claimed Tax Credit to check if it would be better for them to switch over to Universal Credit.
Those on Tax Credits get help with childcare costs through the childcare element of Working Tax Credit.
Currently, the maximum you can get for one child is around £530 a month and for two children or more it's around £910.
These amounts are significantly lower than what people claiming Universal Credit will be getting from the end of June.
The Martin Lewis-founded website told Tax Credit claimants to speak to an approved charity before they make any moves.
This is because some people actually may not end up being better off on Universal Credit - and once you have switched you can't go back.
