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• Universal Credit childcare payments rise today by almost 50%, up to 拢951 for one child or 拢1,630 for two or more children
• Many parents will now also get extra support with first month鈥檚 childcare costs when they start work or increase their hours
• New support adds to Government鈥檚 wider plans to help parents into work and part of Prime Minister鈥檚 priority to grow the economy

The Department for Work and Pensions (DWP) has raised how much parents on Universal Credit can claim for childcare 鈥� up to 拢951 a month for one child and 拢1,630 for two or more children. This is an increase of 47% from the previous limits, which were 拢646 for one child or 拢1,108 for two or more children.

The Government is also helping eligible parents cover the costs for the first month of childcare when they enter work or increase their hours.

Those parents will now receive up to 85% of those childcare costs back before their next month鈥檚 bills are due 鈥� meaning they should have money to pay one month in advance going forward. Until now, many low-income families struggled with upfront childcare bills, making it harder for them to work.

Mel Stride, Secretary of State for Work and Pensions, said:

鈥淲e are supporting thousands of parents to return to work, progress their careers and boost their finances while making sure they have affordable childcare.

鈥淏y removing one of the biggest barriers to work for parents in Britain we are giving families the chance of a better future while doubling down on this government鈥檚 pledge to grow the economy and bear down on inflation.鈥�

With over two million parents on Universal Credit, the Government is targeting ways to improve support and empower them to do their bit and help fill the million vacancies across the country.

As part of the biggest changes to childcare ever made, the Government is also seeking to boost the early years workforce, and is now consulting on ways to encourage more people to consider childcare as a career, like through new apprenticeship routes.

In addition, the hourly rates paid to providers to deliver the Government鈥檚 free childcare offer for two-year-olds will increase by 30% in September, up to an average rate of 拢8.

While from April 2024 there will be 15 free hours childcare available for working parents of two-year-olds, followed by 15 free hours from nine months in September 2024, and finally 30 free hours from nine months to the start of school from September 2025.

Minister for Children, Families and Wellbeing Claire Coutinho said:

鈥淲e are delivering the largest ever expansion of free early education in England to make sure parents are able to access the high-quality, affordable childcare that they need.

鈥淎 working parent using 30 hours of childcare a week could save an average of 拢6,500 a year thanks to the new free hours offer alone.

鈥淧arents might be surprised just how much support they鈥檙e eligible for 鈥� check all the details on our dedicated Childcare Choices website.鈥�

Helping parents return to work is part of this Government鈥檚 wider drive to tackle economic inactivity and get Britain working, directly linked to one of the Prime Minister鈥檚 key priorities to grow the economy. The Government has invested 拢3.5 billion to get people into work, including these childcare measures and specific schemes targeted at supporting jobseekers on Universal Credit into work and towards prosperity.

Notes to editors

• Please find a link to the EYFS consultation here:
• The 拢3.5 billion investment over five years to boost workforce participation and grow the economy includes:
  • 拢2 billion investment in support for disabled people and people with long-term health conditions.
  • 拢900 million investment in support for parents on Universal Credit.
  • 拢70 million investment in support for over-50s.
  • 拢485 million investment in support for unemployed people and people who are on Universal Credit and working fewer than full time hours.

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