Universal Credit and childcare costs

Work and Pensions Committee Closed Inquiry
Opened: 25 Nov 2021 Closed: 24 Jul 2023 Parliament page
The Committee looked into how well Universal Credit supports parents with childcare costs. We focussed on: • The requirement for parents to cover childcare costs upfront. • The maximum amounts that the Government will reimburse each month. • How easy it is for parents to get advice about what support … Read more
8 Recommendations
6 Conclusions
1 Report
3 Oral sessions
4 Letters
3 Events
Activity timeline 12 events
31 Mar
2023
Report published
23 Feb
2023
Correspondence
9 Feb
2023
Correspondence
20 Dec
2022
Report published
6 Jul
2022
Correspondence
21 Apr
2022
Correspondence
20 Apr
2022
Oral evidence
20 Apr
2022
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
2 Mar
2022
Oral evidence
2 Mar
2022
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
26 Jan
2022
Oral evidence
26 Jan
2022
Formal meeting (oral evidence session) · Room 6, Palace of Westminster
Oral evidence sessions 3 sessions
20 Apr 2022
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Work and Pensions Committee
David Rutley MP · Foreign, Commonwealth & Development Office Donna Ward · Department for Work and Pensions Mims Davies MP · Department for Work and Pensions Neil Couling · Department for Work and Pensions
2 Mar 2022
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Work and Pensions Committee
Annabel Denham · Institute of Economic Affairs Aria Babu · The Entrepreneurs Network Gavin Rice · Centre for Social Justice Gemma Widdowfield Nichola Salvato Vikki Waterman
26 Jan 2022
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Work and Pensions Committee
Ceri Smith · Department for International Trade Charlotte McDonagh · Save the Children UK Dr Rita Griffiths · Institute for Policy Research, University of Bath Helen Donohoe · Professional Association for Childcare and Early Years Jonathan Broadbery · National Day Nurseries Association Oliver Crunden · Citizen’s Advice
Title HC No. Published Items Response
Fourth Report - Universal Credit and childcare costs HC 127 20 Dec 2022 14 Responded
Recommendations & Conclusions
3 results
Clear
2 Recommendation Accepted
Fourth Report - Universal Credit a…
Good quality childcare can have a transformative impact on the lives of children and their...
Good quality childcare can have a transformative impact on the lives of children and their families, and a lack of childcare, or support with paying for it, should never be a barrier to work. Childcare is expensive for all, but … Read more
Government Response
The government is increasing the UC childcare maximum amounts (caps) payable to eligible UC claimants from summer 2023, increasing them to £950.92 for one child and £1,630.15 for two or more children. However, the department does not intend to conduct a specific investigation into the funding schemes of Scotland and Scandinavian countries.
Department for Work and Pensions
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4 Conclusion Accepted
Fourth Report - Universal Credit a…
DWP, entirely reasonably, wants to reduce the amount that it loses to fraud via childcare...
DWP, entirely reasonably, wants to reduce the amount that it loses to fraud via childcare payments in UC. However, we have heard that in doing so, by making payments in arrears, it has created an insurmountable barrier to work for … Read more
Government Response
The Department will be making a change to the Universal Credit Regulations 2013 to exempt any FSF payment made to childcare providers from the UC childcare cost calculation, which will allow UC claimants to receive a FSF payment in the usual way. Claimants will then submit evidence of that payment (paid by DWP) to claim back that same set of childcare costs within that same assessment period where the childcare has been delivered.
Department for Work and Pensions
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10 Recommendation Accepted
Fourth Report - Universal Credit a…
Work Coaches already receive training on childcare support for UC claimants, but given the range...
Work Coaches already receive training on childcare support for UC claimants, but given the range of schemes available, the way that payments and suitable options can change with a claimants’ circumstances, and the need for timely information, there is a … Read more
Government Response
The Department has been promoting the use of UC childcare and the FSF and ensuring guidance is in place and have also put in place Childcare Champions and Subject Matter Experts in regions to support Work Coaches, so they are not considering having Specialist Work Coaches in every Jobcentres.
Department for Work and Pensions
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Government Response AI assessment · 14 of 8 classified
Accepted 3
Acknowledged 4
Deferred 4
Not Addressed 1
Rejected 2
Total 8 recs + 6 conclusions
Correspondence 4 letters
23 Feb 2023 Correspondence to Secretary of State relating to the Universal Credit and childcare costs Report
Parliament page
9 Feb 2023 Correspondence from the Minister for Employment on Flexible Support Fund expenditure
Parliament page
6 Jul 2022 Correspondence with the Minister for Welfare Delivery and the Minister for Employment on Universal Credit and childcare costs
Parliament page
21 Apr 2022 Correspondence with the Minister for Welfare Delivery relating to the Universal Credit and childcare costs inquiry
Parliament page