THOUSANDS of parents will be better off from two big childcare changes coming in within days.
From this week childcare costs will be paid upfront for many parents and the amount they get will rise.
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It’s a huge win for The Sun’s Make Universal Credit Work campaign, and around 120,000 families on Universal Credit who are eligible for childcare payments will benefit.
At the moment, parents on Universal Credit can claim back 85% of their childcare costs – but they have to pay first before claiming the money back later on.
The maximum amount of cash that parents can claim has also stayed the same for many years, despite the cost of care rising.
It has meant that parents have been plunged into debt or unable to return to work because of the unfair rules.
From June 28, the amount of cash parents can claim will go up from £646 to £951 for one child, and from £1,108 to £1,630 for two – an increase of £522.
But it’s important to note that while the new rates come into force on Wednesday, most won’t see their payments rise until August.
At the moment, parents on the benefit can claim 85% of their childcare costs and they have to pay first before claiming the money back later on.
This is a huge hindrance to parents looking to get back in the workforce after having kids.
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But from June 28 they can get their childcare costs paid upfront instead.
The Department for Work and Pensions has now told The Sun that there isn’t a minimum amount of working hours to qualify for this change.
Instead, Universal Credit work coaches have been told that parents need to increase their hours by “at least a few hours more every week” to qualify for upfront cash.
Any increase in work hours would need to alter their childcare pattern by at least a few hours per week over the course of a month.
This means that parents will be expected to require more childcare hours to qualify.
It’s vital that claimants entering work or increasing their hours speak to their work coaches as soon as possible to request upfront childcare cash.
What other childcare help is available?
There are a range of tax breaks and grants to help make childcare more affordable.
You can usually use them for care like registered childminders, nannies, playschemes, nurseries, and holiday clubs.
It’s always worth checking the government’s handy childcare costs calculator to find out which scheme will save you the most money, as not all of them can be used at the same time.
Free childcare for two-year-olds
Parents living in England and claiming any of the following benefits can access some free childcare for their two year olds:
- Income support
- Income-based jobseeker’s allowance (JSA)
- Income-related employment and support allowance (ESA)
- Universal Credit (where household income is £15,400 a year or less after tax, not including benefit payments)
- Tax credits (where household income is £16,190 a year or less before tax)
- Pension Credit (guaranteed element)
2-year-olds can also get free childcare if they:
- Are looked after by a local authority
- Have an education, health and care (EHC) plan
- Get disability living allowance
- Have left care under an adoption order, special guardianship order or a child arrangements order
You may have to pay for extra costs like meals, nappies or trips.
Contact your childcare provider or local council to find out more.
15 or 30 hours of free childcare
All three to four-year-old children in England are entitled to 15 hours of free childcare – amounting to 570 hours per year – from the term after their third birthday.
The free allowance is usually taken as 15 hours per week for 38 weeks of the year, but it is possible to take it at a time that suits you.
The free early education and childcare must be with an approved childcare provider and stops when your child starts school.
Working parents may be eligible to get up to 30 hours of free childcare if they are working at least 16 hours a week on average and earning the National Minimum Wage or more.
Check out what you could get and apply online at Gov.UK.
Tax-free childcare
If you don’t qualify for Universal Credit you may qualify for tax-free childcare.
You can get up to £500 every three months – up to a maximum of £2,000 a year – for each of your children to help with the costs of childcare.
If your child is disabled, it’s even more – £1,000 every three months, up to £4,000 per year.
To receive the tax-free benefit you need to create an online childcare account.
For every £8 you pay into this account, the government will add £2 which you can use to pay your approved provider.
Child benefit
You can get child benefit if you’re responsible for a child aged under 16, or if they are under 20 and in approved education or training.
Child benefit is currently worth £24 a week for the eldest child or only child, adding up to £1,248 a year.
For each subsequent child, parents get £15.90 a week – or £826.80 a year.
The free money is paid every four weeks, and there’s no limit to how many children you can apply for – though only one person can claim for each child.
But do note that those who earn more than £50,000 a year may need to pay back some of their child benefit in tax.
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