08 August 2023 , 11:02
757
0
Universal Credit payments will rise for thousands of families this month following a change in childcare rules.
Parents on the benefit have seen the amount they can claim back for childcare costs rise from £646 to £951 for one child, and from £1,108 to £1,630 for two or more children. You can back up to 85% of your childcare costs, up to these maximum amounts, if you’re in work.
The new rates technically came into force in June but most people won't have seen their payments go up until this month. This is because Universal Credit is paid monthly in arrears.
Anna Stevenson, benefits expert at Turn2us, told the Sun: “The increased amount for childcare came in for assessment periods beginning on or after June 28. So, the earliest people would get paid the higher rate of childcare help would be in the payment due August 3 - which would have been paid on August 1 because August 3 was a Sunday.”
The uplift to childcare costs was first announced in the Budget back in March this year. Some people who are eligible for the help will also be able to get one month's childcare paid for them upfront, instead of having to pay the full cost and getting it reimbursed later.
8 money changes coming in February including Universal Credit and passport fees
Upfront payments will only be available to those who are entering work or "significantly increasing" their hours of work.
The Government is also extending free childcare to cover all children of eligible working under the age of five years. However, this is being in stages with the first change to kick in from next year.
From April 2024, 15 hours of free childcare per week will be made available for eligible working parents of two-year-olds. Then from September 2024, 15 hours of free childcare will be extended to nine month to two year olds.
Finally, from September 2025, working parents of all under-fives will be able to claim 30 hours of free childcare per week if eligible.