Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the adequacy of childcare support available through the benefits system for self-employed parents; and whether he plans to introduce additional support for self-employed parents who are unable to access employer-sponsored childcare voucher schemes.

Universal Credit helps with childcare costs so that low-income families can more easily take up work, stay in work and progress in work. It is available to eligible self-employed parents on the same basis as employed parents. Eligible customers can claim back up to 85% of their eligible childcare costs each month regardless of the number of hours they work. This is up to a maximum amount of £1071.09 a month for a single child and £1836.16 a month for families with two or more children. The Government is increasing Universal Credit childcare support to help larger working families. Eligible parents will receive up to £765.07 in UC childcare support for each additional child beyond the first. This will be implemented in the 2026/27 financial year. Support is also available for upfront childcare costs through the Flexible Support Fund, where eligibility has been extended to parents returning from parental leave to ease the transition back to work.

Childcare Vouchers closed to new entrants in October 2018. It was replaced by Tax-Free Childcare (TFC), which is administered by HM Revenue and Customs. TFC helps eligible working families across the UK with childcare costs. Unlike its predecessor, TFC is available for self-employed parents. For every £8 paid into a TFC childcare account, the government adds an extra £2. Parents can receive up to £2,000 (£500 per quarter) per child each year, or up to £4,000 (£1,000 per quarter) for a disabled child. Parents cannot use TFC if they receive Universal Credit or Childcare Vouchers.