DWP Universal Credit claimants to get £1,300 more to pay for childcare from this month

Universal Credit claimants can get an extra £1,300 a year to help cover the cost of childcare as of this month - as part of the Government's expansion of free childcare for working parents. As of April 8, parents claiming UC can claim £1,015 a month for childcare for a person under the age of 17.

That's an increase of £65 from the £950 you could claim before the rise came in. However, parents who have two or more children can now claim up to £1,739 to help cover childcare costs - as opposed to the £1,630 per month in the last tax year.

That's an extra £109 per month, or an extra £1,300 each year.

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The Mirror reports that parents can receive up to 85 per cent of their childcare costs back before their next month's bills are due with Universal Credit childcare, meaning that they should have money to pay a month in advance. The increase comes as the Government rolls out expansion for free childcare.

As of this month, the Government made 15 hours of free childcare each week available to eligible working parents of two-year-olds. Applications for the scheme opened back in January, and more than 150,000 two-year-olds were confirmed to have childcare places when the scheme launched.

Thousands of more places are expected to be secured in the coming weeks, with applications for 15 hours a week of free childcare for nine-month-olds opening as of May 12. The round of the scheme will be rolled out as of September.

When it is fully rolled out in September next year, eligible working parents - including those on Universal Credit - will receive 30 hours of free childcare from the end of maternity leave to when their child starts school, which means that parents accepting the full 30 hours will save an average of £6,900 a year on childcare costs.

To be eligible, parents of younger children must be employed and earn a minimum of the equivalent of 16 hours a work at minimum wage, but less than £100,000 per year. The rule applies to parents in a couple, as well as single parents.

Free childcare hours are usually split over 38 weeks, but you can spread it out to cover more of the year by using fewer hours a week. The free hours must be used with a registered childcare minder, like private nurseries or state-run pre-schools.

Work and Pensions Secretary, Mel Stride, said: "This big boost to childcare support will help even more parents step into the world of work and secure long-term financial security. We are delivering on our plan to get people into jobs, as we cut taxes, drive down inflation, and put money back into the pockets of hardworking families."