Question to the Department for Education:

To ask the Secretary of State for Education, if his Department will take steps to help reduce the proportion of income after benefits that parents spend on nursery fees.

To support parents to become financially resilient by moving into and progressing in work, eligible Universal Credit (UC) claimants can claim back up to 85% of their registered childcare costs each month, regardless of the number of hours they work, compared to 70% in tax credits. 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 over £13,000 a year.

Those who need extra financial support for their first set of childcare costs when moving in to work, or when they are significantly increasing their work hours, can apply for help from the Flexible Support Fund. This is discretionary non-repayable payment that will pay their initial childcare costs directly to the childcare provider up to the point they receive their first, or increased, salary.

Working parents on low incomes and in receipt of certain benefits (earning less than £15,400 and in receipt of UC or earning less than £16,190 and receiving tax credits) can also qualify for 15 hours free early education for 2 year olds.