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
4 results
Clear
3 Recommendation Acknowledged
Fourth Report - Universal Credit a…
Households claiming Universal Credit are, by definition, amongst the poorest households in the country, yet...
Households claiming Universal Credit are, by definition, amongst the poorest households in the country, yet the childcare support to them via that system requires them to find substantial sums to meet up-front costs: both initially and on an ongoing basis. … Read more
Government Response
The Department works closely with other government departments, especially with DfE to look at ways to support parents back in to work and progress in work. By September 2025, eligible working parents of children aged 9 months to when they start school will be able to access 30 hours of free childcare in England.
Department for Work and Pensions
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6 Conclusion Acknowledged
Fourth Report - Universal Credit a…
DWP maintains that it does not collect or publish regular statistical updates on uses of...
DWP maintains that it does not collect or publish regular statistical updates on uses of the Flexible Support Fund, on the basis that it does not want to detract from its discretionary nature. The FSF is a core element of … Read more
Government Response
The Government recognises that high childcare costs can be a barrier for parents to take up paid work and is increasing the UC childcare maximum amounts (caps) of childcare costs payable to eligible UC claimants, with a provisional implementation date of summer 2023.
Department for Work and Pensions
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8 Conclusion Acknowledged
Fourth Report - Universal Credit a…
There are a wide range of childcare support schemes available to people claiming Universal Credit,...
There are a wide range of childcare support schemes available to people claiming Universal Credit, all with different eligibility criteria and application systems. We heard in this inquiry that it continues to be very difficult for parents to understand what … Read more
Government Response
The government acknowledges the difficulty for parents to understand childcare options, and states that the awareness campaign continues and there is a wide variety of information that covers all the Government childcare offers on the Childcare Choice website. The government does not agree that developing specific calculations on payments for UC childcare would be beneficial.
Department for Work and Pensions
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12 Conclusion Acknowledged
Fourth Report - Universal Credit a…
It is evident that the current system for receiving childcare reimbursements is failing those on...
It is evident that the current system for receiving childcare reimbursements is failing those on Universal Credit, and often leads to further debt and/or compromising circumstances. Variable childcare costs are unfortunately unavoidable due to differing costs during term time and … Read more
Government Response
The government recognizes that high childcare costs can be a real barrier to parents taking up employment or increasing their working hours and shares some of the concerns that the Committee highlights.
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