It is no easy feat to work and care for your child, but for some people, it is a necessity to earn a sufficient income to support their family. Fortunately, there is light at the end of the tunnel for some families. Thanks to a Department for Work and Pensions (DWP) benefit programme, working families could get £1,768. This payment will help you start the year strong, but only if you meet the eligibility requirements. Find out what the requirements are to be deemed eligible today!
Staying afloat in the working family financial cycle
A person’s life cycle can be quite arbitrary, especially as they progress through life and more factors come into consideration to ensure their survival. Once ‘I’ becomes ‘we’, it becomes even more challenging, especially for families in the UK. Staying afloat in the working family financial cycle is no easy feat, as one must budget for daily and monthly expenses, unforeseen expenses (effects of inflation), childcare, and other long-term costs (retirement contributions).
At some point, it may all become financially too much to handle. Fortunately, no one has to go through it alone, nor struggle unnecessarily. There are several government initiatives and other charitable grants to provide financial assistance to vulnerable individuals who must face the current high cost of living, including working families. In fact, some working families could get £1,768 from the DWP. Find out why and how.
Working families could get £1,768 from the DWP
One of the highest expenses working families face is childcare expenses. However, not many families realise that they could be eligible to claim back up to £1,768 in childcare thanks to the Universal Credit. As with any other financial support programme or initiative, eligibility requirements must be met to qualify. To qualify to claim back nearly 85% of childcare costs with Universal Credit, the following requirements must be met:
- You, and if you live with a partner, must be employed, or
- Have a job prospect
- Your child is age 11 or under, or
- Age 16 or under if they have a disability
- Your child must receive childcare, such as
- Daycare
- Caretaker
- After-school clubs
- Holiday Clubs
- Nannies
- A registered provider must provide the childcare
- Claims must be made with a Universal Credit account
This is how much you could receive per child
Unfortunately, not everyone will be eligible to reclaim the maximum childcare amount of £1,768. According to the Universal Credit and childcare official website, you can claim back the following amounts per number of children:
- 1 child – £1,031.88 each month
- 2 or more children – £1,768.94 each month
If you have any outstanding debt to the DWP, a taper rate of 55% will be deducted from your total Universal Credit payment. This means that 55p is deducted from every £1 you earn.
Childcare claims can be backdated to a maximum of three months. However, it is vital to report payments for childcare expenses immediately, as waiting longer than two months to report could result in you forfeiting the claim. The DWP reimburses claims through the monthly Universal Credit assessment period. Please note that the following documentation will be required as proof of payment:
- A childcare provider letter, or
- Childcare provider invoice, or
- Bank statements
So, regardless of which phase you may find yourself in in the working family financial cycle, financial obstacles are inevitable, but not impossible to overcome. Thanks to programmes and initiatives such as Universal Credit and childcare claims, facing these financial obstacles can be a much easier task. We recommend exploring the possibility of financial assistance from other financial support programmes or charitable grants, as there are many little-known programmes. An example is the DWP’s little-known programme offering £812 before Christmas.
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.