Select committee: Work and Pensions Committee
Conclusion 14
Fourth Report - Universal Credit and childcare costs
Published 20 Dec 2022
Paragraph 94
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)
We heard some evidence on how the Department for Work and Pensions could improve or alter conditions in the childcare industry. But we recognise that much of the responsibility for childcare policy sits outside DWP, in the Department for Education. In particular, we heard evidence on whether childcare ratios for children of different ages should be altered, to improve the availability and affordability of childcare.
From: Work and Pensions Committee, Fourth Report - Universal Credit and childcare costs (HC 127), paragraph 94, 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.