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Select Committee · Work and Pensions Committee

Universal Credit and childcare costs

Status: Closed Opened: 25 Nov 2021 Closed: 24 Jul 2023 8 recommendations 6 conclusions 1 report

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 they can claim for. Read … Show more

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Reports

1 report
Title HC No. Published Items Response
Fourth Report - Universal Credit and childcare costs HC 127 20 Dec 2022 14 Responded

Recommendations & Conclusions

3 items
2 Recommendation Fourth Report - Universal Credit and ch… Accepted

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 the pressures are most acute for low-income families and we … Read more

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
4 Conclusion Fourth Report - Universal Credit and ch… Accepted

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 some households. DWP’s recent efforts to encourage Work Coaches to … Read more

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
10 Recommendation Fourth Report - Universal Credit and ch… Accepted

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 case for introducing specialist Work Coaches in this area. We … Read more

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

Oral evidence sessions

3 sessions
Date Witnesses
20 Apr 2022 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 View ↗
2 Mar 2022 Annabel Denham · Institute of Economic Affairs, Aria Babu · The Entrepreneurs Network, Gavin Rice · Centre for Social Justice, Gemma Widdowfield, Nichola Salvato, Vikki Waterman View ↗
26 Jan 2022 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 View ↗

Who gave evidence

16 witnesses
WitnessOrganisationSessions
Annabel Denham · Director of Communications Institute of Economic Affairs 1
Aria Babu · Senior Researcher and Head of the Female Founders… The Entrepreneurs Network 1
Ceri Smith · Director General in Strategy and Investment Department for International Trade 1
Charlotte McDonagh · Policy Advisor Save the Children UK 1
David Rutley MP · Parliamentary Under-Secretary of State (Americas … Foreign, Commonwealth & Development Office 1
Donna Ward · Director, Poverty, Family & Disadvantage Department for Work and Pensions 1
Dr Rita Griffiths · Research Fellow Institute for Policy Research, University of Bath 1
Gavin Rice · Policy Director Centre for Social Justice 1
Gemma Widdowfield — 1
Helen Donohoe · Policy Adviser Professional Association for Childcare and Early Years 1
Jonathan Broadbery · Director of Policy and Communications National Day Nurseries Association 1
Mims Davies MP · Parliamentary Under Secretary of State (Minister … Department for Work and Pensions 1
Neil Couling · Director General Change and Resilience, and Unive… Department for Work and Pensions 1
Nichola Salvato — 1
Oliver Crunden · Senior Policy Researcher Citizen’s Advice 1
Vikki Waterman — 1

Correspondence

4 letters
DateDirectionTitle
23 Feb 2023 — Correspondence to Secretary of State relating to the Universal Credit and child…
9 Feb 2023 — Correspondence from the Minister for Employment on Flexible Support Fund expend…
6 Jul 2022 — Correspondence with the Minister for Welfare Delivery and the Minister for Empl…
21 Apr 2022 — Correspondence with the Minister for Welfare Delivery relating to the Universal…