Source · Select Committees · Work and Pensions Committee
Fourth Report - Universal Credit and childcare costs
Work and Pensions Committee
HC 127
Published 20 December 2022
Recommendations
3
Acknowledged
Para 35
Households claiming Universal Credit are, by definition, amongst the poorest households in the country, yet...
Recommendation
Households claiming Universal Credit are, by definition, amongst the poorest households in the country, yet the childcare support to them via that system requires them to find substantial sums to meet up-front costs: both initially and on an ongoing basis. …
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Government Response Summary
The Department works closely with other government departments, especially with DfE to look at ways to support parents back in to work and progress in work. By September 2025, eligible working parents of children aged 9 months to when they start school will be able to access 30 hours of free childcare in England.
Department for Work and Pensions
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Conclusions (3)
6
Conclusion
Acknowledged
DWP maintains that it does not collect or publish regular statistical updates on uses of the Flexible Support Fund, on the basis that it does not want to detract from its discretionary nature. The FSF is a core element of support for working parents, and without this data, the Department …
Government Response Summary
The Government recognises that high childcare costs can be a barrier for parents to take up paid work and is increasing the UC childcare maximum amounts (caps) of childcare costs payable to eligible UC claimants, with a provisional implementation date of summer 2023.
8
Conclusion
Acknowledged
Para 66
There are a wide range of childcare support schemes available to people claiming Universal Credit, all with different eligibility criteria and application systems. We heard in this inquiry that it continues to be very difficult for parents to understand what the best childcare option for them is, and how this …
Government Response Summary
The government acknowledges the difficulty for parents to understand childcare options, and states that the awareness campaign continues and there is a wide variety of information that covers all the Government childcare offers on the Childcare Choice website. The government does not agree that developing specific calculations on payments for UC childcare would be beneficial.
12
Conclusion
Acknowledged
Para 85
It is evident that the current system for receiving childcare reimbursements is failing those on Universal Credit, and often leads to further debt and/or compromising circumstances. Variable childcare costs are unfortunately unavoidable due to differing costs during term time and out of term, but the Government and childcare providers can …
Government Response Summary
The government recognizes that high childcare costs can be a real barrier to parents taking up employment or increasing their working hours and shares some of the concerns that the Committee highlights.