Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, with reference to her oral contribution to the Work and Pensions Committee, of 24 July 2019, what criteria will be used for claimants to receive upfront childcare costs.

The Government is committed to supporting parents with moving into work and, as part of this, we have increased the level of ongoing financial support for childcare costs from 70 per cent in legacy benefits to up to 85 per cent in Universal Credit, which is called the ‘childcare element’. The Universal Credit childcare policy aligns with the wider government childcare offer, which includes free childcare hours and tax free childcare. This offer means that reasonable childcare costs should not form a barrier to work.

Beyond the Universal Credit childcare element, there is other financial support to help with childcare costs: the Flexible Support Fund and Budgeting Advances. Claimants are able to discuss eligibility for these with their jobcentre work coach.

Where initial upfront childcare costs or deposits may prevent a claimant from starting work, work coaches have the discretion to use the Flexible Support Fund to support the transition into work until a claimant receives their first wage. Individual claimant circumstances are considered each time assistance may be appropriate.

A budgeting advance can help with one-off urgent financial events for Universal Credit claimants, such as upfront childcare, and is repayable over a period of up to 12 monthly instalments. Only one Budgeting Advance will be paid at a time and further advances will be unavailable until the balance of the previous Budgeting Advance is cleared.

The Department is working hard to ensure that the Universal Credit childcare offer continues to operate effectively for claimants. Since February 2018, Universal Credit claimants have been able to upload digital copies of their childcare cost receipts or invoices through their online Universal Credit account. When parents have good reason for late reporting of their childcare costs, the Department is piloting a more flexible approach to enable parents to be reimbursed at a later point.