Commons Sense

House of Commons · Ministers' Questions

Transfer from Universal Credit into Work: Cost of Childcare

Monday 5 December 2022 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • Mike Amesbury questioned the Department's assessment of childcare costs impacting people's willingness to move from universal credit to work.
  • Sandra from Northwich faces barriers due to increased childcare costs, prompting a question about unfreezing the childcare element of universal credit.
  • The Minister highlighted that universal credit-eligible claimants can receive up to 85% of their registered childcare costs each month.

Topics (select to filter)

Questions & Answers

Q1 Mike Amesbury Lab
Benefits & Welfare Children & Families
Context

The cost of childcare affects parents' decision to transfer from universal credit into employment, especially considering the frozen childcare element since 2016.

Question

What assessment has been made by the Department regarding the potential impact of childcare costs on people's incentive to move from universal credit to work?

Answer from Mims Davies

The Government provide tailored support through universal credit, the free childcare entitlement, and skills support. Claimants can receive financial assistance for upfront and ongoing childcare costs under universal credit. Universal credit-eligible claimants can get up to 85% of their registered childcare costs each month.

Partly answered

Not addressed: The specific ask about assessing the impact of frozen childcare costs was not directly addressed.

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Q2 Mike Amesbury Lab
Benefits & Welfare Children & Families
Context

Sandra in Northwich faces a significant barrier due to increased childcare costs, reflecting the challenges many women face across the UK. The childcare element of universal credit has been frozen since 2016.

Question

Sandra from Northwich faces barriers because of increased childcare costs. When will the Minister unfreeze the childcare element of universal credit?

Answer from Mims Davies

Universal credit-eligible claimants can receive up to 85% of their registered childcare costs each month. I compare this favourably with the 70% offered in tax credits. Employers need to understand and address childcare challenges better by considering job design and flexibility.

Not addressed: The specific ask about unfreezing the childcare element was not addressed; instead, emphasis was placed on comparing benefits and employer responsibilities.

How: Changed Subject To Employer Responsibilities

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