Recommendations & Conclusions
14 items
1
Recommendation
Fourth Report - Universal Credit and ch…
Deferred
The Department is currently exceeding its expected proportion of claimants in receipt of childcare support, but it admits that some low-income parents still have difficulty accessing appropriate childcare, for reasons both within and outside its direct control. We recommend the Department commits to producing a quarterly statistical update on the …
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The Department is currently exceeding its expected proportion of claimants in receipt of childcare support, but it admits that some low-income parents still have difficulty accessing appropriate childcare, for reasons both within and outside its direct control. We recommend the Department commits to producing a quarterly statistical update on the proportion of eligible claimants on UC childcare, and that it commissions research into why take-up is not higher and how it could be improved.
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Government response AI summary
The Department is reviewing the considerations as to the usefulness of more regular publications of UC childcare data and will keep the committee informed on this decision. Research on 'why take-up isn't higher' has been concluded but is still being quality assured.
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Department for Work and Pensions
2
Recommendation
Fourth Report - Universal Credit and ch…
Accepted
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 the pressures are most acute for low-income families and we …
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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 the pressures are most acute for low-income families and we recommend the Government increase the financial support it provides to them. Additionally, the Department should assess the childcare funding schemes in Scotland and Scandinavian countries, investigating whether their costs are offset by societal benefits such as increased economic activity, additional tax and personal wellbeing. (Paragraph 20) Upfront costs
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Government response AI summary
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 …
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Department for Work and Pensions
3
Recommendation
Fourth Report - Universal Credit and ch…
Acknowledged
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. Other schemes, such as Tax Free Childcare, allow reimbursement in …
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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. Other schemes, such as Tax Free Childcare, allow reimbursement in advance despite being aimed at much wealthier households. The Department must solve this obvious barrier to work. We recommend it work with the DfE and childcare providers to produce a solution to this problem, if necessary by establishing a direct payment system modelled on those used elsewhere, such as Alternative Payment Arrangements for housing, or funded childcare hours. If this cannot be achieved within the Universal Credit system, childcare support should be removed from it entirely and a solution based on a single childcare account, such as that used for Tax Free Childcare, should be implemented.
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Government response AI summary
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 …
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Department for Work and Pensions
4
Conclusion
Fourth Report - Universal Credit and ch…
Accepted
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 some households. DWP’s recent efforts to encourage Work Coaches to …
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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 some households. DWP’s recent efforts to encourage Work Coaches to make greater use of the Flexible Support Fund to address this problem do not seem to be having the desired effect.
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Government response AI summary
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 …
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Department for Work and Pensions
5
Recommendation
Fourth Report - Universal Credit and ch…
Rejected
We recommend the Government amend the regulations on the use of the Flexible Support Fund so that receipts for payments made from the Fund can be submitted as if the parent had paid the childcare costs themselves. This would have the effect of removing, or largely offsetting the upfront cost, …
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We recommend the Government amend the regulations on the use of the Flexible Support Fund so that receipts for payments made from the Fund can be submitted as if the parent had paid the childcare costs themselves. This would have the effect of removing, or largely offsetting the upfront cost, rather than simply pushing it in to Universal Credit and childcare costs 47 the next month. We note that there has been a substantial underspend in the FSF in every year of its operation to date which would contribute to the cost of this measure.
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Government response AI summary
The government will not amend regulations on the use of the Flexible Support Fund, stating that it would not want to risk introducing a reporting system to such a granular level of detail that may drive undesirable behaviour across Jobcentres.
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Department for Work and Pensions
6
Conclusion
Fourth Report - Universal Credit and ch…
Acknowledged
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 support for working parents, and without this data, the Department …
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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 support for working parents, and without this data, the Department cannot verify whether it is being used as intended. We appreciate that the Department has sent us data for some recent years on request, but recommend the Department commit to publishing an annual update on Flexible Support Fund spending. (Paragraph 45) Caps and maximum reimbursement
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Government response AI summary
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.
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Department for Work and Pensions
7
Recommendation
Fourth Report - Universal Credit and ch…
Not Addressed
The UC childcare offer is, in some ways, more generous than the system it replaces, as it offers a higher percentage reimbursement. However, support for childcare for some of the poorest families in the country has failed to keep pace with inflation because the maximum cap of childcare that can …
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The UC childcare offer is, in some ways, more generous than the system it replaces, as it offers a higher percentage reimbursement. However, support for childcare for some of the poorest families in the country has failed to keep pace with inflation because the maximum cap of childcare that can be claimed for has stayed at the same level since 2005. This is particularly pertinent given the current rate of inflation and cost of living crisis, which the Government has recognised in uprating benefits, and the benefit cap, in the Autumn Statement. We recommend the Government uprate the childcare cost caps to better reflect the true cost of childcare in 2022 and then index them annually. (Paragraph 60) Understanding support and eligibility
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Government response AI summary
The response describes work to promote the use of UC childcare and support Work Coaches understanding rather than uprating the childcare cost caps.
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Department for Work and Pensions
8
Conclusion
Fourth Report - Universal Credit and ch…
Acknowledged
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 the best childcare option for them is, and how this …
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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 the best childcare option for them is, and how this might change with their circumstances.
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Government response AI summary
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 …
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Department for Work and Pensions
9
Conclusion
Fourth Report - Universal Credit and ch…
Deferred
The Government offers support on childcare options: notably, the Childcare Choices website and via Jobcentre Plus Work Coaches. DWP told us that Work Coaches receive training in advising UC claimants on their childcare options, but our evidence suggests further work is needed. We also heard that currently, UC claimants referring …
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The Government offers support on childcare options: notably, the Childcare Choices website and via Jobcentre Plus Work Coaches. DWP told us that Work Coaches receive training in advising UC claimants on their childcare options, but our evidence suggests further work is needed. We also heard that currently, UC claimants referring to the Childcare Choices webpage are often directed back to general information on Universal Credit, as the information on the webpage is not sufficient.
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Government response AI summary
The Department states it does not have any jurisdiction to work with childcare providers and therefore, does not intend to consult with providers, as the regulation of childcare lies solely within the DfE remit. The current system of paying childcare costs on receipt of actual …
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Department for Work and Pensions
10
Recommendation
Fourth Report - Universal Credit and ch…
Accepted
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 case for introducing specialist Work Coaches in this area. We …
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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 case for introducing specialist Work Coaches in this area. We recommend the Department develop “childcare specialist” Work Coaches, in line with its existing Self-employment and Disability Employment specialist roles. The Department should introduce one in each job centre in the next 6 months.
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Government response AI summary
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 …
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Department for Work and Pensions
11
Recommendation
Fourth Report - Universal Credit and ch…
Rejected
The range of childcare support schemes available to parents is complex, and they need access to good quality, timely information to make the best decisions about 48 Universal Credit and childcare costs their finances. We recommend the Department for Work and Pensions develop a single portal for childcare on the …
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The range of childcare support schemes available to parents is complex, and they need access to good quality, timely information to make the best decisions about 48 Universal Credit and childcare costs their finances. We recommend the Department for Work and Pensions develop a single portal for childcare on the current Childcare Choices model: crucially, this must include information and calculations on payments for Universal Credit childcare claimants that is integrated with advice on other programmes. (Paragraph 77) Childcare Industry
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Government response AI summary
The Department does not agree with the Committee that developing specific calculations on payments for UC childcare would be beneficial for claimants and feel that it could be misleading.
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Department for Work and Pensions
12
Conclusion
Fourth Report - Universal Credit and ch…
Acknowledged
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 out of term, but the Government and childcare providers can …
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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 out of term, but the Government and childcare providers can and should do more to protect those receiving UC.
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Government response AI summary
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.
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Department for Work and Pensions
13
Recommendation
Fourth Report - Universal Credit and ch…
Deferred
We recommend that the Department for Work and Pensions consult providers on a way that costs can be split evenly for people claiming Universal Credit childcare support.
Government response AI summary
The Department for Work and Pensions does not intend to consult with childcare providers, redirecting responsibility to the Department for Education.
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Department for Work and Pensions
14
Conclusion
Fourth Report - Universal Credit and ch…
Deferred
We heard some evidence on how the Department for Work and Pensions could improve or alter conditions in the childcare industry. But we recognise that much of the responsibility for childcare policy sits outside DWP, in the Department for Education. In particular, we heard evidence on whether childcare ratios for …
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We heard some evidence on how the Department for Work and Pensions could improve or alter conditions in the childcare industry. But we recognise that much of the responsibility for childcare policy sits outside DWP, in the Department for Education. In particular, we heard evidence on whether childcare ratios for children of different ages should be altered, to improve the availability and affordability of childcare. (Paragraph 94) Universal Credit and childcare costs 49
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Government response AI summary
Acknowledges responsibility for childcare policy sits outside DWP, in the Department for Education.
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Department for Work and Pensions