Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the potential impact of the process for (a) paying and (b) claiming reimbursement for childcare expenses on the finances of Universal Credit recipients.
The childcare costs element in Universal Credit is based on a customer’s actual costs and monthly reporting of paid out costs is simple to submit. Working parents can report their childcare costs either in the same assessment period they were paid, or by the end of the following assessment period.
Universal Credit customers who need help with their upfront childcare costs to move into work or increase their working hours may be eligible for support from the Flexible Support Fund. The Flexible Support Fund can be used to pay 100% of the upfront costs of up to one month of childcare. This is designed to ensure that any costs incurred in relation to childcare when starting work or increasing hours is not a barrier to taking up this work.
Customers who have received an upfront childcare award can make a Universal Credit childcare claim for up to 85% of their childcare costs thereafter. The Universal Credit childcare claim is paid to the customer through their Universal Credit award, which they can use to pay for the next month's costs, thereby easing customers into the Universal Credit childcare costs payment cycle.
Alternative help with upfront costs for eligible Universal Credit customers is available through Budgeting Advances.