THOUSANDS of parents will receive a bumper cash boost to childcare payments within weeks.
Nearly 120,000 families on Universal Credit who are eligible for childcare payments will benefit, according to the latest Department for Work and Pensions (DWP) figures.
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The maximum amount of cash that parents can claim has stayed the same for many years, despite the cost of care rising.
But 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 just under 50%.
But it’s important to note that while the new rates come into force on June 28, most won’t see their payments rise until August.
This is because of the way in which the assessment period for Universal Credit work.
For example, if your assessment period starts before June 28, you won’t see the payment boost until the middle or end of August.
But if your assessment period starts after June 28, you should receive the payment boost at the beginning of August.
Families can check when their assessment period will be by logging into their Universal Credit account.
And if you’re still not sure when you’ll receive the payment, speak to your work coach.
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The payments boost isn’t the only change to Universal Credit childcare payments from June 28.
What else is changing?
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.
Parents have been plunged into debt or unable to return to work because of this unfair rule. But that’s about to change
In a huge win for The Sun’s Make Universal Credit Work campaign, the government is finally changing how families receive help.
From June 28, parents will get a payment boost and childcare costs for some of those on Universal Credit will be paid upfront.
Parents who start work or significantly increase their work hours will also be able to get help with upfront payment for their childcare bill instead of having to pay the costs, and then claim them back.
It comes after 75% of mums said that unfair and expensive childcare costs mean that it doesn’t make financial sense to work.
By making more payments upfront, the government hopes to get more parents back into work.
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.
While this help isn’t directly for childcare, the money can help to cut costs.
