Source · Select Committees · Work and Pensions Committee
Recommendation 5
5
Rejected
Paragraph: 44
We recommend the Government amend the regulations on the use of the Flexible Support Fund...
Recommendation
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.
Government response summary AI-generated
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.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
44
Government Response
Rejected
HM Government · verbatim extract
Rejected
Following the announcement at the Spring Statement, we are pleased to advise the Committee that 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. This additional payment will allow UC claimants to receive a FSF payment in the usual way to pay for childcare costs where this enables them to take up a job or significantly increase their working hours. Claimants will then submit evidence of that payment (paid by DWP) to claim back that same set of childcare costs within that 6 Universal Credit and childcare costs: Government Response same assessment period where the childcare has been delivered. so this would support claimants to get into the UC childcare payment cycle sooner. In the Committee’s follow up letter an estimated cost of this measure was provided. In response, the Government’s costings for this measure were estimated by using the current FSF spending on childcare and the number of claimants on flowing to UC each month. This used UC administrative data to estimate the eligible population for increased FSF spending, multiplying the average childcare award by the identified population and increasing it by CPI in future years. The costing accounts for a behavioural response due to the policy supporting more people to use childcare in order to work more hours and earn more. 2022–23 2023–24 2024–25 2025–26 2026–27 2027–28 Exchequer 0 -100 -95 -75 -70 -60 Throughout the financial year spend is reviewed to ensure Departmental goals are achieved, customer needs are met at a local level and that spend remains within budget. The Department is aware of spend being within a range of 0.2% and 11.9% of budget for the period 2016–20. A below budget spend was also shown in the DWP Annual Report & Accounts 2020–
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