Most of us are excited to start a family, until the moment we realise how expensive it can be, especially if we must rely on childcare. In the UK, childcare can be considered daylight robbery. Thankfully, some families can claim £1,768 before Christmas, as the Department for Work and Pensions (DWP) has set out the eligibility criteria, and one of them is that you must be a working parent. Discover the full list of eligibility criteria today, and perhaps your family could also benefit from these payments.
Children are a gift, but childcare is daylight robbery
Sometimes it could be hard to imagine a time when our lives were not intertwined with our children. For some, a child brings light and joy into a family, but for others, it brings increased levels of concern and financial stress, especially when you have to start paying for childcare in the UK. According to the UK Government, certain factors impact the amount of childcare you will pay:
- Location
- Some locations are more expensive than the UK average
- Child age
- Childcare for children under the age of two is generally more expensive
- Care type
- Nannies and day nurseries are usually more expensive than childminders
In the UK, the average annual cost for childcare for children under the age of two is £12,425 in England, £15,038 in Wales, and £12,468 in Scotland. That is a lot of money, and for bigger families, childcare is nearly unaffordable. Thankfully, some families can claim £1,768 before Christmas, but only if they meet all the eligibility criteria set out by the DWP.
Only these families can claim before Christmas
According to the DWP, if you are a working parent, you could reclaim nearly 85% of childcare expenses, but only if you meet the eligibility criteria. The full list of eligibility criteria is:
- You must be employed or have a job offer
- If you live with a partner, the partner must also be employed, unless exempted (in case of health or disability)
- A registered provider must provide childcare, such as nursery, preschool, nannies, breakfast clubs, etc.
- You must be a Universal Credit claimant
Universal Credit will reimburse childcare costs every month. Claimants must provide proof of payment, which can be a letter or invoice from the childcare provider or bank statements. Universal Credit claimants may also qualify for a £1,200 bonus running until 2027.
This is how much you can expect to receive
If you meet the eligibility criteria, your family will qualify to claim the following childcare payment amounts:
- One child – A maximum of £1,031
- Two or more children – A maximum of £1,768
These childcare payment amounts can only be claimed for children under the age of 16 that you are financially responsible for. All childcare claims must be submitted through Universal Credit accounts. You may claim up to three months of past childcare costs, as well as up to three months in advance. In both cases, you must report the childcare costs as soon as you pay for them.
Waiting longer than two months to report the payments may result in the loss of reimbursements. You will only be reimbursed once the childcare has been provided. In other news, parents could also earn up to £2,000 per year, but nearly 1 million are missing out on the opportunity.
Most families can claim the Universal Credit’s childcare scheme, and those who qualify truly should. Regardless of your family’s circumstances, most of us could always benefit from additional childcare contributions. Just ensure that you are fully informed of all the eligibility requirements, and that your claims are submitted promptly, then you should be good to go! For additional information about the payments, please visit the Universal Credit and childcare official website.
Disclaimer: Our coverage of one-off payments, support payments, tax reliefs, tax refunds, tax credits, and other payments is based on the official sources listed in the article. All payment amounts and dates, as well as eligibility requirements, are subject to change by the governing institutions. Always consult the official source we provide to stay up to date and obtain information for your decision-making.