As the government seeks to encourage individuals to work or increase their hours, benefit-receiving parents will be able to claim 50% more in childcare assistance.
The government has announced that, as of the end of June, benefit-receiving families will be eligible for hundreds of pounds more in childcare payments.
As part of the government’s efforts to get more people back to work, the maximum childcare payments for Universal Credit recipients will increase by nearly 50 percent on June 28.
The previous limits of £646 for one child and £1,108 for two or more children have been increased by 47% to £951 for one child and £1,630 for two or more children under the Universal Credit system.
Parents who are eligible for support will also have a portion of their childcare costs covered upfront for the first month if they become employed or increase their work hours. This solution helps folks who can’t work or are sliding into debt due to the present system’s hefty upfront charges.
The Department of Work and Pensions (DWP) announced that these parents will receive up to 85 percent of their childcare costs before their next month’s invoices are due.
The reorganization of the benefits system, which was announced in March as part of Jeremy Hunt’s budget, is intended to encourage claimants to enter the workforce or increase their hours.
In the budget, Mr. Hunt also announced an expansion of child care. By September 2025, in residences where all adults work at least 16 hours per week, every child from nine months to school age will receive 30 hours of free childcare per week.
In the month leading up to March 2023, the unemployment rate rose to 1.3 million, while approximately 2.5 million individuals are believed to be out of work due to long-term illness.
Minister for Children, Families and Wellbeing Claire Coutinho stated, “Childcare should not be a barrier to employment. But in the past, parents were forced to choose between working and caring for their child due to the cost.”
“We are supporting families through the largest expansion of free child care ever, ensuring that places are available for parents who require them. This will save a parent working 30 hours per week approximately £6,500.
“We’ve already announced plans to increase the amount the government pays for child care, and now we’re removing obstacles to recruiting and retaining the talented staff that provides such wonderful care for our children.”
This week’s reorganization by the Department of Work and Pensions (DWP) is accompanied by a consultation by the Department of Education to increase the early childhood workforce in England.
Next year, a recruitment effort will introduce expedited and degree apprenticeship routes.
Helen Hayes, the Labour Party’s shadow education minister, stated, “The Conservatives are applying pressure to a flawed system. Their plans do not include a strategy to increase the workforce, which is essential for expanding childcare.
“Parents and children require higher standards, greater availability across the nation, and a flexible system that supports families from the conclusion of parental leave to the end of primary education.
“Labour has outlined clear plans for fully-funded breakfast clubs for every child in every primary school in England, plans that can be implemented and won’t leave parents scrambling to find alternatives.”
