Source · Select Committees · Work and Pensions Committee
Recommendation 13
13
Deferred
Paragraph: 86
We recommend that the Department for Work and Pensions consult providers on a way that...
Recommendation
We recommend that the Department for Work and Pensions consult providers on a way that costs can be split evenly for people claiming Universal Credit childcare support.
Government Response Summary
The Department for Work and Pensions does not intend to consult with childcare providers, redirecting responsibility to the Department for Education.
Paragraph Reference:
86
Government Response
Deferred
HM Government
Deferred
Although the Department works closely with the DfE on a wide range of childcare issues it does not have any jurisdiction to work with childcare providers and therefore, we do not intend to consult with providers. The regulatory of childcare lies solely within the DfE remit. When UC was being designed, the Department considered the best way to avoid parents from getting into debt. We wanted to avoid overpayments and there was evidence that there was problems in the Working Tax Credits system which was susceptible to uncertainty for parents. Paying equal UC childcare payments throughout the year would increase the potential for parents to move into dept due to the fluctuations that occur in childcare costs and when claimants moving in and out of work. The current system of paying childcare costs on receipt of actual costs paid protects the claimant from getting into debt.