Oral Answers to Questions

Debate between Justin Tomlinson and Lucy Powell

Monday 7th January 2019 Commons Chamber

[Lucy Powell (Manchester Central) (Lab/Co-op)]

2. What support is available for childcare costs through universal credit.

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

Universal credit supports working parents with childcare costs, regardless of the number of hours they work. This provides an important financial incentive to those taking their first steps into paid employment. People can recover up to 85% of their eligible childcare costs on universal credit, compared to 70% on the legacy system.

[Lucy Powell]

As the Minister will know, one of the big challenges with universal credit is that families have to pay their childcare costs upfront. Save the Children and the Centre for Social Justice have recently warned that this is leaving families in £1,000 of debt when they start work. Under the review that the Department now seems to be conducting, can it look again at this, and can it also look at their other recommendation of making it not 85% but 100% of childcare costs, because this would really benefit those on low pay?

[Justin Tomlinson]

I know that the hon. Lady has worked tirelessly on this issue. The Government recognise its importance, which is why we have increased our financial support by nearly 50% since 2010. We are making improvements specifically in relation to payment in arrears, improving communication and ensuring that the Flexible Support Fund is better known and better used to help those who would otherwise face a financial barrier.