Starting from 28th June, the maximum childcare payments under Universal Credit will experience a substantial increase of almost 50%, reaching up to £1,630 per month.
The boost arrives as part of the government’s initiative to get parents back into work.
Families who qualify for assistance under the Universal Credit program can now receive reimbursements of up to £951 for one child and £1,630 for two or more children. This represents a substantial 47% rise from the previous limits of £646 for one child or £1,108 for two or more children.
In an effort to assist parents facing financial difficulties when starting a new job or increasing their working hours, eligible parents will now receive an upfront payment for a portion of their childcare expenses during the first month. This initiative aims to alleviate the burden of high initial costs, prevent individuals from accumulating debt, and facilitate their transition into employment.
Mel Stride, Secretary of State for Work and Pensions, said: “These changes will help thousands of parents progress their career without compromising the quality of the care that their children receive.
“By helping more parents to re-enter and progress in work, we will be able to cut inactivity and help grow the economy.
Minister for Children, Families and Wellbeing Claire Coutinho said: “We are supporting families with the largest ever expansion of free childcare, making sure that places will be available for parents who need them. This will save a working parent using 30 hours a week an average of £6,500.
“We have already announced plans to boost the amount government pays childcare providers, and now we’re knocking down barriers to recruiting and retaining the talented staff that provide such wonderful care for our children.”
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