The Department for Work and Pensions (DWP) is offering financial support to Universal Credit claimants in paid employment who need help with childcare costs. Parents can claim up to £1,739 per month to cover childcare expenses, including holiday clubs, after-school clubs, and breakfast clubs.
This guide explains who is eligible, how to claim, and what costs are covered.
Who Can Claim Universal Credit Childcare Support?
You may be eligible for Universal Credit childcare support if you:
- Are in paid employment or about to start work within a month.
- Are part of a couple, where both partners are working unless one partner is unable to care for the children.
- Have childcare costs that need covering.
There is no minimum number of working hours required to qualify.
How Much Can You Get?
The DWP reimburses up to 85% of childcare costs, with maximum limits per assessment period:
- Up to £1,014.63 for one child.
- Up to £1,739.37 for two or more children.
Your total Universal Credit payment may fluctuate depending on your earnings in each assessment period. If your income increases, your Universal Credit may decrease.
Which Childcare Costs Are Covered?
You can claim Universal Credit childcare support for:
Registered childminders.
Nurseries and preschools.
Holiday clubs.
After-school and breakfast clubs.
The childcare provider must be registered with:
- Ofsted (England).
- Care Inspectorate (Scotland).
- Care and Social Services Inspectorate Wales.
How Does Reimbursement Work?
Step 1: Pay for Childcare Upfront
- You must pay the childcare costs first before claiming reimbursement.
Step 2: Report Your Costs to Universal Credit
- Report the childcare expenses as soon as you have paid.
- Ideally, arrange monthly payments with your childcare provider to align with your Universal Credit assessment period.
Step 3: Receive Reimbursement
- If you pay for childcare after receiving the service, the costs will be reimbursed in the same assessment period.
- If you pay in advance, you can claim up to three months of future childcare costs if you provide proof of payment.
- Payments are spread over the relevant assessment periods, not paid as a lump sum.
The DWP advises claimants to report childcare costs immediately after payment to avoid delays in receiving reimbursement.
Example of a Universal Credit Childcare Payment
- You pay £800 per month in childcare costs.
- You report the payment to Universal Credit.
- The DWP reimburses 85%, meaning you receive £680 back.
If your total childcare costs exceed the maximum limit, the DWP will only reimburse up to the cap (£1,014.63 for one child, £1,739.37 for two or more).
How to Claim Universal Credit Childcare Costs
- Log into your Universal Credit account.
- Report your childcare expenses by entering:
- The amount paid.
- The date of payment.
- The name of the childcare provider.
- Upload proof of payment (receipts or invoices).
- Wait for the reimbursement, which will be included in your next Universal Credit payment.
If you have any issues with your claim, contact Universal Credit support via your online journal or the DWP helpline.
Universal Credit childcare support is a valuable financial aid for working parents, offering up to £1,739 per month to help with childcare costs. By paying upfront and reporting expenses promptly, claimants can receive reimbursement through their Universal Credit payments.
If you qualify, make sure to keep records of payments and submit claims on time to maximise your entitlement.
For further details, visit the official UK Government website or contact your local Jobcentre Plus.
Source: Link
FAQ’s
Who can claim Universal Credit childcare support?
You can claim if you’re in paid employment or starting work within a month. If you have a partner, both must be working unless one is unable to care for the children.
How much childcare support can I get from Universal Credit?
You can claim up to 85% of childcare costs, with a maximum of £1,014.63 for one child and £1,739.37 for two or more children per assessment period.
Do I need to pay childcare costs upfront?
Yes, you must pay childcare costs first, then report them to Universal Credit for reimbursement in your next assessment period.
What types of childcare are covered by Universal Credit?
Registered childminders, nurseries, preschools, holiday clubs, after-school clubs, and breakfast clubs are eligible if registered with the appropriate authority.
How do I report childcare costs to Universal Credit?
Log into your Universal Credit account, enter the payment details, upload proof of payment, and wait for reimbursement in your next Universal Credit payment.