Major boost to families on Universal Credit as parents set to get extra £1,300 to help pay for childcare
FAMILIES on Universal Credit are set to get an extra £1,300 cash boost to help pay for childcare.
The support is part of the government’s expansion of free childcare for working parents.
As of Monday, April 8, parents on Universal Credit with one child under 17 can claim for up to £1,015 a month, a rise from £950 previously.
While parents of two children or more will be eligible for up to £1,739, which is an increase from £1,630.
The 6.7% increase in support is aimed at helping more parents into work by offering up to £109 more a month towards childcare costs.
The announcement comes as part of a huge package of support for working parents, including the expansion of 15 hours of free childcare a week for eligible working parents of two-year-olds.
More than 150,000 two-year-olds are confirmed to have places for 15 hours a week of free childcare as of Friday.
Thousands more places are expected to be secured over the coming weeks.
Work and Pensions secretary Mel Stride said: “This big boost to childcare support will help even more parents step into the world of work and secure long-term financial security.”
When it is fully rolled out, eligible working parents, including those on Universal Credit, will receive 30 hours of free childcare from the end of maternity leave to when their child starts school.
This means that parents who take up the full 30 hours will save an average of £6,900 per year on childcare costs.
What is Universal Credit and how can I claim?
Universal Credit is a welfare scheme that can help you if you’re on a low income or ill.
However, even families on higher incomes over £50,000 with childcare and rent costs could get help, so it’s always worth checking.
Exactly how much Universal Credit you get depends on your personal circumstances.
This includes who you live with, like a partner and children, plus if you have a job and how many hours you work.
How much Universal Credit can you get?
TRYING to work out how much Universal Credit you can get can be overwhelming.
There are so many different elements that can affect your claim and it makes the whole process even more complicated.
There are several free calculators that you can use to help you get an estimate, such as Gov.UK, Citizen’s Advice, MoneySavingExpert, StepChange and Turn2Us.
You will need:
- Details of all your income, such as existing benefits, tax credits, earnings from employment and your pensions,
- Details of your partner’s income if you’re married, in a civil partnership or living with someone as a couple. You will be assessed as a couple
- Information on any savings you have,
- How much you pay in council tax per year, and whether you get any discounts, reductions or exemptions,
- Details of your rent or mortgage payments,
- Employment and income information about anyone else living with you, such as grown-up children,
- Details about your carer’s allowance if you receive it.
You’ll need to make sure that the information provided is as accurate as possible to get the truest estimate.
Universal Credit has replaced six so-called legacy benefits and comes as a single payment each month, similar to a monthly salary you get from a job.
It can be paid to you twice monthly in some circumstances though, including if you live in Scotland.
We have a full guide to Universal Credit including how much you can claim and how to apply.
How can I apply for free childcare?
You can apply for free childcare hours on the GOV.UK website.
Once your application has been approved, you’ll get a code to give to your childcare provider.
You can currently apply for 30 hours of free childcare on the Government’s website and from when your child is two years and 36 weeks old.
You should check with your childcare provider to find out the exact date your 30 hours of free childcare will start.
Crucially, you have to reconfirm your eligibility every three months.
You can check if you qualify for free childcare via the Childcare Choices page on the Government’s website.
Working parents can apply for 15 hours of free childcare from May 12 ahead of its September rollout.
What help is available to parents for childcare costs?
CHILDCARE can be a costly business. Here is how you can get help.
- 30 hours of free childcare – Parents of three and four-year-olds can apply for 30 hours of free childcare a week.
To qualify you must work at least 16 hours a week at the national living or minimum wage and earn less than £100,000 a year. - Tax credits – For children under 20, some families can get help with childcare costs.
- Tax-free childcare – Available to working families and the self-employed, for every £8 you put in the government will add an extra £2.