Big increase in Universal Credit will help parents

The amount of childcare for which families on benefits can claim back will increase by hundreds of pounds from the end of June, under Government's plans to tackle inactivity and help grow the economy.

The Department for Work and Pensions (DWP) is set to raise the amount on June 28, meaning parents eligible for help through Universal Credit will be able to claim back up to £951 for one child and £1,630 for two or more children.

This is a rise of 47% from the previous limits of £646 for one child or £1,108 for two or more children.

The Government will also support eligible parents with their first month of childcare costs when they either enter work or increase their hours, by providing childcare funding upfront.

Those parents will receive up to 85% of their childcare costs back before their next month's bills are due.

Work and Pensions Secretary Mel Stride said: ‘These changes will help thousands of parents progress their career without compromising the quality of the care that their children receive.

‘By helping more parents to re-enter and progress in work, we will be able to cut inactivity and help grow the economy.’

The Department for Education launched a consultation yesterday aimed at increasing the early years' workforce in England.

A recruitment campaign to attract and retain talent is also planned for early next year, which will consider how to introduce new accelerated apprenticeship and degree apprenticeship routes.

Minister for children and families Claire Coutinho insisted childcare shouldn't be a ‘barrier to work’.