Recommendation 7

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