DWP TO REMOVE TWO-CHILD LIMIT ON CHILDCARE SUPPORT

The Department for Work and Pensions says it will change Universal Credit childcare support for larger families by the end of this financial year. The change will remove the cap that currently applies to families with two or more children. Working claimants can recover 85 per cent of their childcare costs, up to a monthly maximum set by the department. The planned rules would allow families to claim an additional £736 for each child beyond the first two.

The department currently caps monthly support at £1,071 for one child and £1,836 for two or more children. The higher cap applies regardless of how many children beyond two need childcare. A DWP spokesman said: “By the end of this financial year, universal credit childcare support will change so larger families are not penalised for moving into work.” The department says the change aims to help parents in larger families take up work.

Sarah Ronan, executive director of the Early Education and Childcare Coalition, said the current system can obstruct access to work. “Childcare support should be an enabler of opportunity, not an obstacle to it,” Ronan said. She said government investment in childcare helps families who can access it, but does not reach some of those who would benefit most. Ronan said that gap affects children, parents and the economy at a time of rising prices and low growth.