Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what support is in place for parents (a) who are in work to cover the cost of childcare costs during school holidays and (b) who have accessed the Flexible Support Fund in the month following that claim and who are not able to recoup the costs of childcare for that period via universal credit.

The Universal Credit childcare policy aligns with the wider government childcare offer, which includes free childcare hours and tax free childcare. Claimants can utilise both the free childcare entitlement and Universal Credit childcare costs in conjunction with each other. This offer means that reasonable childcare costs should not form a barrier to work, even during school holidays. The Government is committed to supporting working parents and, as part of this, Universal Credit pays up to 85% of childcare costs, compared to 70% in legacy benefits.

Universal Credit claimants are able to upload digital copies of their childcare cost receipts or invoices through their online Universal Credit account. In October 2019, the Department introduced changes to give parents longer to report their childcare costs. Childcare costs can be claimed in the same assessment period they were paid, or by the end of the following assessment period.

Beyond the Universal Credit childcare element, claimants can be considered for two additional methods of funding childcare costs: the Flexible Support Fund (FSF) and Budgeting Advances.

The FSF can pay up to 100% of the upfront childcare costs (subject to payment limits) that the claimant incurs before starting work and receiving their first wage. Through FSF, Work Coaches can support claimants with barriers that may prevent them from moving into employment, such as childcare or travel costs. Each case is considered carefully on its own merits with financial help available in advance to eligible claimants.

A budgeting advance is available for one-off urgent financial events for eligible UC claimants, such as upfront childcare, and is repayable over a period of up to 12 monthly instalments.