If you’re receiving Universal Credit and have children, there’s great news! You could claim back up to £1,768 each month to help with childcare costs. However, it’s important to understand how the system works so you don’t miss out on this valuable support.
How the Childcare Payments Work
When you pay for childcare, you first have to pay the costs yourself. After that, you report the amount to Universal Credit. Once they have your details, they will pay you some of the money back — but only after the childcare has actually taken place.
The Department for Work and Pensions (DWP), now under Labour Party leadership, advises arranging monthly payments with your childcare provider. You should report these payments as soon as you make them so that they can be included in your Universal Credit payment during the same assessment period.
Can You Claim Past and Future Childcare Costs?
Yes! If you already paid for childcare during your current assessment period, you can still claim those costs. Plus, if you have paid upfront for childcare that covers future months, you can claim for up to three assessment periods at once. Just remember — you need proof of payment.
However, the DWP points out that these childcare costs won’t be refunded as one big lump sum. Instead, the amount will be spread across the assessment periods for which the costs apply.
How Much Can You Get Back?
You can get up to 85% of your childcare costs covered through Universal Credit. The maximum you can claim for each assessment period is:
- £1,031.88 for one child
- £1,768.94 for two or more children
This extra support can make a huge difference for working parents struggling with high childcare expenses.
Who Can Claim Childcare Costs?
To qualify for this help:
- You must be in paid work or starting a job within the next month.
- If you live with a partner, both of you must be in paid work — unless your partner cannot care for the children due to illness or disability.
- There is no minimum number of working hours required.
- You must be doing paid work, not volunteering for expenses only.
- You can still be eligible if you’re off work and receiving Statutory Sick Pay.
You can claim childcare costs for every child you’re responsible for until 31 August after their 16th birthday.
Universal Credit offers a big boost to working families by helping cover childcare costs. If you pay upfront and report correctly, you could recover up to £1,768 every month for two or more children. This support can be a lifeline for many parents balancing work and family life. Make sure you keep proof of all payments and report them quickly to get the support you deserve. With proper planning, managing childcare costs while working becomes much easier!
FAQs
How much childcare cost can I claim on Universal Credit?
You can claim up to 85% of your childcare costs, with a maximum of £1,031.88 for one child or £1,768.94 for two or more children per month.
When will Universal Credit pay me back for childcare costs?
Universal Credit will pay back your childcare costs after the childcare has taken place and you report the payment during the same assessment period.
Can I claim childcare costs I paid upfront?
Yes, you can claim up to three assessment periods of future childcare costs if paid in advance, as long as you provide proof of payment.
Do both parents need to work to claim childcare costs?
If you live with a partner, both of you need to be in paid work, unless your partner cannot care for your children due to illness or disability.
Until what age can I claim childcare costs for my child?
You can claim childcare costs until the 31 August after your child’s 16th birthday.
