Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps she is taking to ensure that the cap for the childcare element of universal credit reflects rising costs of childcare.

We know that for some UC claimants’, the cost of childcare makes it more difficult to enter work. To support parents to start work, eligible UC claimants can claim back up to 85% of their registered childcare costs each month regardless of the number of hours they work. This is higher than under tax credits, which reimbursed up to 70%.

This is up to the maximum amount of £646.35 per month for one child and £1,108.04 per month for two or more children. For families with two children, this could be worth up to £13,000 a year. Currently we do not have any plans to increase the childcare caps but continue to keep the policy under review.

In cases where people need to pay for childcare upfront, prior to starting work, Work Coaches can use the Flexible Support Fund for eligible claimants to meet these costs until their first wage is received.

The UC childcare policy aligns with the wider government childcare offer in England and there are similar funded early learning offers in devolved nations. The free childcare offer provides 15 hours a week of free childcare in England for all 3 and 4 year olds and disadvantaged 2 year olds, doubling for working parents of 3 and 4 year olds to 30 hours a week.

The UC childcare element can be used to top up a claimant’s eligible free childcare hours if more hours are worked and childcare required.