DWP boost for some working families on Universal Credit of £20,872 this year
10.04.2024 - 17:49
/ manchestereveningnews.co.uk
Working parents who receive Universal Credit are set to receive a 'big boost' to the family finances this year, as the Department for Work and Pensions (DWP) increases the amount of help that parents get with the eye-watering costs of childcare - with some receiving as much as £20,872 per year.
With this support package, the government is hoping to encourage more parents back into the workforce, or to work more hours, by removing some of the prohibitive costs of childcare. As part of this, from this week, parents on Universal Credit can claim up to £1,015 a month for their first child's care, an increase of £65, and £1,739 a month if they have two children or more, an increase of £109.
Childcare costs have grown by as much as 60 per cent in the last decade, more than twice the rate of inflation of other goods and services. The DWP payment boost is part of a wider package of measures to tackle the effect of this on working families, including the expansion of 15 hours of free childcare to the parents of children under two for the first time - which saw 150,000 more children signed up for nursery this April.
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Work and Pensions Secretary Mel Stride said: "This big boost to childcare support will help even more parents step into the world of work and secure long-term financial security.
"We are delivering on our plan to get people into jobs, as we cut taxes, drive down inflation, and put money back into the pockets of hardworking families."
With these changes to childcare, up to 85 per cent of the cost of having your child looked after are covered by DWP for those receiving Universal Credit, which has increased since last summer by