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Select committee: Work and Pensions Committee

Fifth Special Report - Universal Credit and childcare costs: Government Response to the Committee’s Fourth Report of Session 2022–23

Published 31 March 2023

Work and Pensions Committee Universal Credit and childcare costs Report on parliament.uk ↗

At a glance

The government's response

This document responds to Fourth Report - Universal Credit and childcare costs.

This is the government's response, published 31 March 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.

Read the government's response ↗ Report an error

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