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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

2 items
5 Recommendation Fourth Report - Universal Credit and ch… Rejected

We recommend the Government amend the regulations on the use of the Flexible Support Fund...

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, … Read more

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
11 Recommendation Fourth Report - Universal Credit and ch… Rejected

The range of childcare support schemes available to parents is complex, and they need access...

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 … Read more

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

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…