Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what financial support for the costs of childcare her Department provides to parents in receipt of universal credit.

The Government recognises that childcare costs can affect parents’ decisions to take up paid work or increase their working hours. We are committed to helping parents into work.

To overcome this barrier to employment, Universal Credit claimants are able to claim up to 85 per cent of their childcare costs, compared to 70% on the legacy system. This can be claimed up to a month before starting a job, and can be worth up to £13,000 a year for families with two children.

Over the last few months we have been trialling a more flexible approach to parents who do not report their childcare costs on time. Following a successful pilot, we are now updating our guidance, so that Work Coaches have more flexibility and discretion to support parents’ claims for this essential service.

The Universal Credit childcare policy also aligns with the wider government childcare offer, which includes free childcare hours and tax free childcare.