If you’re a working parent and you claim Universal Credit then you might be able to get back up to 85% of your childcare costs. You need to be working, or have a job offer, to get childcare help from Universal Credit.
It does not matter how many hours you work. If you live with a partner, they must also be in work, unless they cannot look after your children – for example, if they have a health condition or disability.
The maximum amount you can claim each month is £1,031.88 for one child or £1,768.94 for two or more children. You can claim help with childcare costs for any children under 16 who you are responsible for.
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The childcare must be with a registered provider and can include nursery, preschool, after-school clubs, breakfast clubs, childminders, nannies, and school holiday clubs. Claims for childcare have to be made through your Universal Credit account and you can claim up to three months of past childcare.
However, it is recommended that you report your childcare as soon as you pay for it, as if you leave it for longer than two months, you might not get the money back. You can also claim up to three months in advance of future childcare but you won’t be reimbursed until you childcare has been delivered.
This cost will be paid back monthly by Universal Credit to your relevant assessment period, rather than as one lump sum. You’ll need to provide a letter or invoice from the childcare provider or show your bank statements as proof that it has been paid.
Some people can get childcare costs paid upfront by Universal Credit if they are starting a new job or increasing their hours at their current place of work. If you haven’t started work yet, but you have a job offer, you may still be entitled to claim childcare costs.
You may also be eligible if you’re getting statutory sick pay, or if you’re claiming statutory maternity pay, statutory paternity pay, statutory shared parental pay, statutory adoption pay or maternity allowance.
It comes after Universal Credit payments rose by 1.7% from this month. Universal Credit is made up of a standard allowance, which is the basic amount you get before any additional elements – for example, if you have children or are unable to work due to illness – or any deductions are taken into account.
You may be subject to deductions if you have savings or if you owe the Department for Work and Pensions (DWP) money. If you work, there is a taper rate which reduces your maximum Universal Credit payment as your earnings increase.
The taper rate is 55% which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn. Some people get a “work allowance” which is a set amount you can earn before your Universal Credit is reduced.
Standard allowance
Child element
Limited capability for work
Carer element
Work allowance
Childcare costs element
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