Summer boost for working parents

And if you’re starting a new job or increasing your hours at work, you can get one month’s childcare upfront without the need to pay and then apply for reimbursement.

Are you a working parent on Universal Credit?

If you claim Universal Credit and must pay for childcare while you go to work, the amount you can claim each month has just increased from £646 to £951 for one child, and from £1,108 to £1,630 for two or more children. Funding is available for up to 85% of your childcare costs for children aged nine months to school age.

Upfront help if you are entering work or significantly increasing your hours

As well as the extra amount of financial support available, parents who are starting work or significantly increasing their hours can now get upfront help towards childcare costs straight away. Both changes took effect from 28 June 2023.

This should make a big difference to many low-income families who would have previously struggled to find hundreds of pounds to pay for a month of childcare and then claim it back. Now, a portion of childcare costs will be paid upfront to make it much easier for more parents to start work or increase their hours. To start the process of getting your first upfront payment, speak to your work coach or use your online journal.

No change for parents receiving Working Tax Credits

There are no changes to the provision of childcare for those who claim Working Tax Credits, which means you can currently get up to £122.50 a week for one child, and £210 a week for two or more children in approved childcare.

Some people may be better off switching to Universal Credit because of the changes, but there are several things you need to consider before applying for Universal Credit. To find out what would be better for you, please get in touch with one of our expert advisors in our Welfare Rights & Money Advice Team to receive personalised advice and support, or read the online guide for more information.

Are you claiming your full benefit entitlement?

It’s quick and easy to check if you're eligible for Universal Credit or any other vital support that you may be missing out on, simply take the Money Saving Expert 10-minute benefits check.