Universal Credit: Childcare payments to rise by up to £520 a month

Working parents are to benefit from a monthly childcare boost of up to £520 per month.

The Department for Work and Pensions have announced Universal Credit childcare payments are to increase by almost 50% to help cover childcare costs.

Those eligible could receive up to £951 for one child or £1,630 for two or more children.

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

Eligible parents will now also get extra government support with first month’s childcare costs when they start work or increase their hours.

Benefits cash boost for low-income families iStock

Those parents will now receive up to 85% of those childcare costs back before their next month’s bills are due – meaning they should have money to pay one month in advance.

The DWP are investing £3.5bn over five years in targeted support to help more Universal Credit claimants get back to work.

Latest figures show there are 5.8 million people claiming Universal Credit in the UK, with 3.6 million of those out of work.

Mel Stride, secretary of state for work and pensions, said: “We are supporting thousands of parents to return to work, progress their careers and boost their finances while making sure they have affordable childcare.

“By 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’s pledge to grow the economy and bear down on inflation.”

UK Government minister for Scotland John Lamont said: “Making childcare more affordable is an important move that will help more parents into work or to increase their hours.

“It’s a vital step to achieve our aim of growing the economy and will help take the pressure off families all over Scotland and the rest of the UK.”