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Universal Credit: Day Care

Question for Department for Work and Pensions

UIN 153348, tabled on 11 February 2021

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the affordability of childcare for universal credit claimants since the judgment made on 22 January 2021 in R (Salvato) v Secretary of State for Work and Pensions [2021] EWHC 102; and if she will make a statement.

Answered on

24 February 2021

UC childcare is a generous offer - eligible claimants can claim up to 85% of their registered childcare costs each month compared to 70% in legacy benefits.

DWP’s internal analysis indicates that less than 5% of families/claimants hit the childcare costs cap of £646.35 for one child and £1108.04 for two children.

The Department has been granted permission to appeal. It is therefore not appropriate to comment at this time.

The policy of reimbursing actual childcare costs paid has, as intended, resulted in a significantly lower level of fraud and error than in the legacy system, which was based on projected costs.