Claiming Childcare on Universal Credit
On Universal Credit, you can claim help with childcare costs to enable you to work or increase your working hours. You can be eligible for help with childcare costs whatever the age of your children and regardless the number of hours that you work.
Many people who were not eligible for help on tax credits, do find they are far better off on Universal Credit but childcare on Universal Credit can cause a lot of stress for claimants due the way it is paid and it often needs chased up in order for it to be added to the claim.
Many people who were not eligible for help on tax credits, do find they are far better off on Universal Credit but childcare on Universal Credit can cause a lot of stress for claimants due the way it is paid and it often needs chased up in order for it to be added to the claim.
How to claim back childcare costs
You may be able to claim back up to 85% of your childcare costs if you are claiming Universal Credit.
When you first begin to claim childcare you need to add your childcare provider onto your journal. You will need their name, address, registration number – eg OFSTED etc.
You (and your partner if you live with them) will usually need to either be working - it does not matter how many hours you or your partner work or have a job offer.
If you have a partner both of you need to be in work to claim childcare costs.
However, you may be able to claim help if one of you is not working and is unable to provide childcare because you fall into one of the following groups.
You can be treated as in paid work if you get one of the following benefits
You must be paying childcare costs to registered or approved childcare providers.
This means that generally the childcare provider should be registered with the relevant organisation;
How much you’ll get
The most you can get back each month is 85% with a max of -
You may be able to claim back up to 85% of your childcare costs if you are claiming Universal Credit.
When you first begin to claim childcare you need to add your childcare provider onto your journal. You will need their name, address, registration number – eg OFSTED etc.
You (and your partner if you live with them) will usually need to either be working - it does not matter how many hours you or your partner work or have a job offer.
If you have a partner both of you need to be in work to claim childcare costs.
However, you may be able to claim help if one of you is not working and is unable to provide childcare because you fall into one of the following groups.
- You have limited capability for work (lcw/lcwra)
- You have caring responsibilities and receive the carer element
- You are temporarily absent from the household, for example in hospital, in residential care or in prison
You can be treated as in paid work if you get one of the following benefits
- Statutory sick pay
- Statutory maternity pay
- Statutory paternity pay
- Statutory shared parental pay
- Statutory adoption pay
- Maternity allowance
You must be paying childcare costs to registered or approved childcare providers.
This means that generally the childcare provider should be registered with the relevant organisation;
- England – OFSTED
- Scotland – The Care Inspectorate
- Wales – Care and Social Services Inspectorate for Wales (CSSIW)
How much you’ll get
The most you can get back each month is 85% with a max of -
- £646.35 for one child
- £1108.04 for 2 or more children
Reporting Childcare
Childcare is paid in arrears. There are some steps you can take to ensure that your childcare is paid on time.
If you end up in a situation where you are paying arrears of childcare then be careful that you do not end up going over the childcare limit caps (646.35/£1108.04) because you will not benefit from the full 85%
Many parents pay their childcare in advance and in this case childcare can be a mix of some taken in the assessment period and some still to be taken. UC will only cover childcare paid in advance that covers two assessment periods plus the current one. It is important to be aware of this if your provider bills quarterly. This is especially important when it comes to childcare providers charging for whole terms.
If childcare is paid for a period in arrears then 85% of the costs can be paid back to you, in the payment relating to the assessment period that you paid it. To work out 85% of the total by multiplying the amount paid by 0.85.
If your childcare costs span more than one assessment period it can seem difficult to work out. We have provided an example to help explain the process.
Childcare is paid in arrears. There are some steps you can take to ensure that your childcare is paid on time.
- Report the day you pay the childcare – childcare can only be counted if you report it in the assessment period you pay.
- Provide the invoice from the childcare provider – UC need to know how much the childcare provider has requested and what dates this covers.
- Provide evidence of payment within 28 days – this can be an invoice stamped as paid, a signed receipt or a bank statement showing the payment leaving your account. Even if you don't have the evidence as yet, report the childcare as soon as you pay it.
- You report each individual payment. If you have one invoice that is £500 and you make two payments of £250, then you report £250 and then report the other £250 when you pay it.
If you end up in a situation where you are paying arrears of childcare then be careful that you do not end up going over the childcare limit caps (646.35/£1108.04) because you will not benefit from the full 85%
Many parents pay their childcare in advance and in this case childcare can be a mix of some taken in the assessment period and some still to be taken. UC will only cover childcare paid in advance that covers two assessment periods plus the current one. It is important to be aware of this if your provider bills quarterly. This is especially important when it comes to childcare providers charging for whole terms.
If childcare is paid for a period in arrears then 85% of the costs can be paid back to you, in the payment relating to the assessment period that you paid it. To work out 85% of the total by multiplying the amount paid by 0.85.
If your childcare costs span more than one assessment period it can seem difficult to work out. We have provided an example to help explain the process.
Example
Theo and Jayne start their 2 children in childcare on 1st April and pay their childcare in advance.
Their assessment period is the 5th to the 4th of each month and they are paid UC on the 11th.
Childcare costs vary month to month but are always paid on 1st month for the commencing month (eg 1st April for April 1st to 30th April). This means they are paying their childcare in advance - UC is paid in arrears.
1st April paid – £550 (for 1st April to 30th April)
1st May paid – £350 (for 1st May to 31st May)
1st June paid – £228 (for 1st June to 30th June)
For each invoice paid in advance, Universal Credit work out a daily rate.
It is worth noting that UC do not ask which days your child attended a session. If the invoice covers 31 days, then they will use 31 days as the total days, and its just the number days in general within the assessment period. Not the number of sessions attended.
April = £550/30 days = £18.33 per day
May = £350/31 days = £11.29 per day
June = £228/30 days = £7.60 per day
They then calculate how many days of that childcare relates to which assessment period.
Childcare element for 11th April relates to assessment period 5th March - 4th April
5th March - 4th April has no childcare in March and only 4 days of April invoice in it.
4 days x daily rate of April £18.33 = £73.32
£72.32 x 0.85= £62.32
£62.32 - This is the childcare that will be included for payment due on 11th April
Childcare element for 11th May relates to assessment period 5th April – 4th May
5th April - 4th May has 26 days of April invoice in it and 4 days of May invoice in it.
26 days x daily rate of April £18.33 = £476.58
4 days x daily rate of May £11.29 = £45.16
£45.16 + £476.58 = £521.74
£521.74 x 0.85 = £443.48
£443.48 - This is the childcare that will be included for payment due on 11th May
Childcare element for 11th June relates to assessment period 5th May – 4th June
5th May - 4th June has 27 days of May invoice in it and 4 days of May invoice in it.
26 days x daily rate of May £11.29 = £293.54
4 days x daily rate of June £7.60 = £30.40
£293.54 + 30.40 = £323.94
£323.94 x 0.85 = £275.35
£275.35 – This is the childcare that will be included for payment due the 11th June
Theo and Jayne start their 2 children in childcare on 1st April and pay their childcare in advance.
Their assessment period is the 5th to the 4th of each month and they are paid UC on the 11th.
Childcare costs vary month to month but are always paid on 1st month for the commencing month (eg 1st April for April 1st to 30th April). This means they are paying their childcare in advance - UC is paid in arrears.
1st April paid – £550 (for 1st April to 30th April)
1st May paid – £350 (for 1st May to 31st May)
1st June paid – £228 (for 1st June to 30th June)
For each invoice paid in advance, Universal Credit work out a daily rate.
It is worth noting that UC do not ask which days your child attended a session. If the invoice covers 31 days, then they will use 31 days as the total days, and its just the number days in general within the assessment period. Not the number of sessions attended.
April = £550/30 days = £18.33 per day
May = £350/31 days = £11.29 per day
June = £228/30 days = £7.60 per day
They then calculate how many days of that childcare relates to which assessment period.
Childcare element for 11th April relates to assessment period 5th March - 4th April
5th March - 4th April has no childcare in March and only 4 days of April invoice in it.
4 days x daily rate of April £18.33 = £73.32
£72.32 x 0.85= £62.32
£62.32 - This is the childcare that will be included for payment due on 11th April
Childcare element for 11th May relates to assessment period 5th April – 4th May
5th April - 4th May has 26 days of April invoice in it and 4 days of May invoice in it.
26 days x daily rate of April £18.33 = £476.58
4 days x daily rate of May £11.29 = £45.16
£45.16 + £476.58 = £521.74
£521.74 x 0.85 = £443.48
£443.48 - This is the childcare that will be included for payment due on 11th May
Childcare element for 11th June relates to assessment period 5th May – 4th June
5th May - 4th June has 27 days of May invoice in it and 4 days of May invoice in it.
26 days x daily rate of May £11.29 = £293.54
4 days x daily rate of June £7.60 = £30.40
£293.54 + 30.40 = £323.94
£323.94 x 0.85 = £275.35
£275.35 – This is the childcare that will be included for payment due the 11th June
So this makes it really difficult for some people starting childcare....
In the above example, Theo and Jayne started childcare on the 1st April and paid £550, the childcare element they received on 11th April was only £62.32 but yet, they had to pay £330 on the 1st May.
I think for anyone on Universal Credit, finding £880 within that space of time is really really difficult. On 11th May, they do get childcare element £443.48 but I think for most people they would have already started falling behind on other bills.
Theo and Jayne have quite conservative childcare costs compared to some people. It is not unusual for some people to be paying a few hundred per week for childcare costs.
A budgeting advance can be claimed for childcare costs but you do need to meet the eligibility criteria for it. You can ask your work coach about a discretionary grant for childcare costs, Flexible Support Fund to help with first month of childcare costs as well. Not all job centres though are helpful when it comes to this.
In the above example, Theo and Jayne started childcare on the 1st April and paid £550, the childcare element they received on 11th April was only £62.32 but yet, they had to pay £330 on the 1st May.
I think for anyone on Universal Credit, finding £880 within that space of time is really really difficult. On 11th May, they do get childcare element £443.48 but I think for most people they would have already started falling behind on other bills.
Theo and Jayne have quite conservative childcare costs compared to some people. It is not unusual for some people to be paying a few hundred per week for childcare costs.
A budgeting advance can be claimed for childcare costs but you do need to meet the eligibility criteria for it. You can ask your work coach about a discretionary grant for childcare costs, Flexible Support Fund to help with first month of childcare costs as well. Not all job centres though are helpful when it comes to this.