Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make it her policy to extend eligibility for the childcare element of universal credit to parents and guardians in the event that they lose employment as a result of covid-19 restrictions after 31 October 2020.

Universal Credit claimants who cease employment and have pre-existing childcare arrangements, will be eligible for reimbursement of up to 85% of their childcare costs as part of their Universal Credit award for the assessment period in which they cease work and the subsequent assessment period.

If Universal Credit claimants are on the Job Support Scheme and satisfy both the work condition and childcare costs condition they are eligible to continue to have up to 85% (subject to the maximum limits) of their childcare costs reimbursed if:

• they have a contract of employment and are still being paid;
• childcare is being provided during that assessment period.

Help with upfront childcare costs for starting work is available through a non-repayable Flexible Support Fund (FSF) award for eligible UC claimants up to the limits set. This does not apply for claimants already in work. We have issued guidance to Work Coaches in Jobcentres to ensure that eligible claimants who require help with upfront childcare costs in order to start work are directed to the governments FSF. The FSF received an additional £150m this financial year to help support UC claimants to move closer to, or in to, work. Budgeting advances are also available to eligible UC claimants who require help with upfront costs, repayable over the following 12 months.

In addition, UC claimants who lose their employment may be entitled to request a change of circumstances advance. This advance is available if a claimant’s award is likely to significantly increase with their next payment to address any short-term costs that arise in the meantime. Change of circumstances advances can be repaid over a maximum of six months, with a three month deferral available in exceptional circumstances.