PARLIAMENTARY WRITTEN QUESTION
Children: Day Care (21 July 2022)

To ask the Secretary of State for Work and Pensions, what estimate the Government has made of the number of women in England who are unable to take on more paid work as a result of the cost of childcare.

Asked by:
Alison McGovern (Labour)

No assessment has been made.

The Department is aware that for some UC claimants' childcare costs presents challenges to entering employment. To support parents to become financially resilient by moving into work and progressing in work, eligible UC claimants can claim back up to 85% of their registered childcare costs each month regardless of the number of hours they work, compared to 70% in Tax Credits. This is up to the maximum amount of £646.35 per month for one child and £1,108.04 per month for two or more children. For families with two children, this could be worth over £13,000 a year.

This support is available to all lone parents and couples, regardless of the number of hours they work. For couples, both parents need to be in paid work to be eligible unless one of the allowable exceptions is met.

The UC childcare policy aligns with the wider government childcare offer in England and there are similar funded early learning offers in devolved nations. The Free Childcare offer provides 15 hours a week of free childcare in England for all 3- and 4-year old's and disadvantaged 2-year old's, doubling for working parents of 3 and 4 year old's to 30 hours a week.

The UC childcare element can be used to top up a claimant's eligible free childcare hours if more hours are worked and childcare required. This offer means that for some claimants' childcare costs should not present any barriers to entering work.

UC claimants who need help with upfront childcare costs to enter employment or significantly increase their working hours can apply for help from the Flexible Support Fund (FSF). This is non-repayable and will pay their initial childcare costs directly to the provider up to the first salary received.

Through a staged rollout from April 2022 onwards, 2.1m low paid Universal Credit claimants will be eligible for support to progress into higher paid work. This will be provided by work coaches and focus on career progression advice, such as considering skills gaps, identifying training opportunities, or looking for opportunities for the claimant to progress in their current role or in a new role. Jobcentres will be supported in this new role by a network of 37 Progression Champions across Great Britain who will spearhead the scheme. They will work with partners to address local barriers that limit progression, such as transport and childcare.

Answered by:
David Rutley (Conservative)
5 September 2022