Welfare to Work

– More families will be paid childcare support than ever

Childcare support to be paid to 80,000 more households under Universal Credit

Reaffirming their commitment to helping parents with the costs of childcare, Nick Clegg and Iain Duncan Smith have announced that the Government will invest an additional £300 million into childcare support, on top of the £2bn already spent under the current system.

Currently, childcare support is only available if you work 16 hours or more, but the Government is removing the minimum hours rule so that all families receiving Universal Credit will be eligible for financial help. This means that families on low incomes will receive more support to keep them in work.

As now families will be able to recover childcare costs at 70 per cent – up to £175 for one child or £300 for two or more children per week. The money will be paid through Universal Credit from 2013 and will mean that around 80,000 more families with children will be able to work the hours they choose.

Work and Pensions Secretary Iain Duncan Smith said:

“Under Universal Credit more people will receive support for childcare than they do now. Parents will be able to work the hours to suit their families and receive the childcare support they deserve. We will target support at those making the first steps into work – support won’t just be available for those working more than 16 hours, it will also be there for those working fewer than 16 hours.”

Costs can vary, but for those paying average childcare costs, this would enable parents to buy up to around 40 hours of childcare a week.

Website: DWP

Source: 

Amanda Frewin

Research & Project Support

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