Major boost for parents on Universal Credit with plans for childcare cash increase being considered by government

CHILDCARE cash would be boosted for parents on benefits under plans being considered in government.

The Sun has learned of proposals to uprate the Universal Credit childcare allowance to ease the burden of surging costs. 

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Ministers are considering uprating childcare cash for parents on Universal Credit[/caption]

Chancellor Jeremy Hunt could increase the money as a way of getting stay-at-home parents to work. 

Ministers believe crippling childcare costs are a barrier stopping some mums and dads working more hours.

Parents on Universal Credit can currently claim back 85 per cent of their childcare costs.

But the maximum cap of £646 for one child and £1108 for two kids has not increased since 2005 despite costs rising steeply.

MPs have been calling for the welfare payment to be increased to keep up with inflation.

Government sources stressed the measure has not been confirmed and would be expensive.

Ministers could also make the payments up front rather than in arrears, in what would be a win for the Sun’s Make Universal Credit Work campaign.

Tories have told Mr Hunt he must not “dodge” the issue of childcare, with research showing parents pay £1,500 more on fees annually than they did five years ago. 

Cabinet Ministers have been sending their Budget wish list to the Treasury ahead of the March 15 statement.

At the heart of the Budget will be policies to tempt the country’s nine million economically inactive Brits back to the workplace to help plug huge vacancies.

Work and Pensions Secretary Mel Stride has been carrying out a review of the best ways to get these people back to work, with a particular focus on the long-term sick and over-50s.

Mr Hunt will also crack down on Universal Credit claimants who have no interaction with job centres in an effort to get them working.

Sources said the package of measures will be a mixture of “carrot and stick”.