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How much childcare can I claim on universal credit? When payments will rise by 47% and who is eligible

The amount of childcare which families can claim on benefits will increase by hundreds of pounds from the end of June.

The policy, which was announced as part of this year’s Budget, comes into effect from tomorrow.

The amount parents on universal credit can claim has been frozen for several years.

Here, i takes a look at how much parents can claim.

How much will parents be able to claim?

From 28 June, parents on benefits will be able to claim back £951 if they have one child and £1,630 if they have two or more children.

This is an increase of 47 per cent from the previous limits of £646 for one child and £1,108 for two or more children. The rate parents can claim is due to keep increasing with the rate of inflation until 2027-28.

The cost of childcare has grown by 44 per cent since 2010, according to the Trades Union Congress.

In a statement, the Work and Pensions Secretary, Mel Stride, said: “We know many people want to work but there are very real barriers we need to break down to help them into employment.

“This package of support helps people at any age and career stage to get into work, progress into better-paid jobs – growing the economy and filling the labour market with skilled employees.

“These interventions are only the start of a long-term journey to drive down economic inactivity and mobilise more people into seeking employment, which I will continue to lead across Government.”

Who is eligible?

Parents who are in paid work, or who are starting a job in the next month, will be eligible to claim back these costs.

It does not matter how many hours parents have worked to be eligible – if it is a two-parent household, both parents need to be working, unless the partner cannot look after children.

If a parent is on sick leave from work, they may also be eligible if receiving the statutory sick pay.

If they are on maternity, paternity or adoption leave, they may also be eligible – further details are available on the Department of Work and Pensions website.

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