Select committee: Work and Pensions Committee
Conclusion 4
Fourth Report - Universal Credit and childcare costs
Published 20 Dec 2022
Paragraph 43
Addressed to Department for Work and Pensions
Work and Pensions Committee Universal Credit and childcare costs All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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.
From: Work and Pensions Committee, Fourth Report - Universal Credit and childcare costs (HC 127), paragraph 43, 20 December 2022
Government response
The government responded to the whole report on 31 March 2023 (deadline 20 February 2023).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government recognises that high childcare costs can be a barrier to work and points to changes announced at the Spring Budget, while declining several of the Committee's recommendations, including direct payments to providers.
- It will increase the UC childcare caps, with a "provisional implementation date of summer 2023" (to £950.92 for one child and £1,630.15 for two or more), and says future uprating "will form part of the Departments annual uprating review".
- It will change the Universal Credit Regulations 2013 to exempt any Flexible Support Fund payment made to childcare providers from the UC childcare cost calculation.
- On direct payments, it says it has "no plans to make direct payments to providers", arguing this "would undermine the fundamental aspect of the design of UC".
- It does not intend to investigate Scottish and Scandinavian funding schemes or to consult providers, and is "not considering" specialist childcare Work Coaches in every Jobcentre, citing existing Childcare Champions and Subject Matter Experts.