Commons Sense

House of Commons · Ministers' Questions

Supporting People into Work: Childcare Costs

Monday 23 January 2023 · 4 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 2 Not answered 0

Key points

  • Kate Hollern expressed concern over high childcare costs pricing parents out of work, with some paying over 1,150 per month for nursery places.
  • The Minister highlighted the DWP flexible support fund as a resource for parents moving into work or increasing their hours to cover up-front childcare costs.
  • Siobhan Baillie and Karen Buck raised concerns about the need for upfront payments for childcare, which can be a barrier for parents on universal credit looking to return to work.

Topics (select to filter)

Questions & Answers

Q1 Kate Hollern Lab
Economy Benefits & Welfare Children & Families
Context

Childcare costs are high, with parents paying an average of £1,150 per month in the north-west according to Coram's childcare survey. Some people are being priced out of work due to these costs.

Question

I am concerned about soaring childcare costs compounding the cost of living crisis and pricing people out of work. Parents in my constituency are paying over £1,150 per month for nursery places for two-year-olds. What plans does the Minister have to support parents who want to increase their hours or return to work but struggle with these high costs?

Answer from Mims Davies

I thank the hon. Lady for raising this matter and encourage employers to think about job design, flexibility, and inclusive recruitment. Parents can get support with up-front childcare costs through the DWP flexible support fund when they move into work or increase their hours. Payments can also be made directly to the childcare provider.

Partly answered

Not addressed: Specific plans to address high childcare costs were not fully detailed beyond encouraging employer actions and mentioning existing funds without addressing the up-front payment issue explicitly.

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Q2 Kate Hollern Lab
Benefits & Welfare Children & Families
Context

The DWP Committee investigated the childcare support under Universal Credit, finding that while the offer is good (85% cost coverage), only 13% of eligible parents are taking it up due to issues like up-front payment requirements.

Question

Parents in my constituency tell me they want to go out to work but face significant challenges with high childcare costs. The DWP Committee found that the universal credit childcare element, while generous at 85%, is not being taken up by most eligible parents due to issues like requiring an upfront payment for childcare. Can you confirm if discussions have been held with the Treasury ahead of the spring Budget regarding funding to address these key asks: removing the up-front payment requirement and uprating the care allowance?

Answer from Mims Davies

The Secretary of State takes a keen interest in this matter, advocating for more parents to be in work. We are responding to the Committee's report published at the end of last year, reiterating our commitment to supporting all parents.

Not addressed: Did not address the specific asks about Treasury discussions and uprating care allowances.

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Q3 Siobhan Baillie
Benefits & Welfare Children & Families
Context

The DWP Committee reported that despite the generous childcare element of Universal Credit (85% reimbursement), only 13% of eligible parents are taking it up due to barriers such as upfront payments.

Question

Parents in my constituency want to return to work but face significant challenges with high childcare costs. The DWP Committee found that while the offer is good, only 13% of eligible parents take it up due to issues like the requirement for an upfront payment for childcare and a need for uprating. Will you confirm if there have been discussions with the Treasury ahead of the spring Budget regarding these key asks?

Answer from Mims Davies

The Secretary of State is keen on seeing more parents in work. The current rate for lone parent employment is 64.6%. We are responding to the Committee's report published at the end of last year, reiterating our commitment to supporting all parents.

Not addressed: Did not address specific asks about Treasury discussions and uprating care allowances.

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Q4 Karen Buck Lab
Employment Benefits & Welfare Children & Families
Context

Parents seeking to return to work often need a significant amount of money (£1,000) to cover the first month's childcare costs before they can receive reimbursement through Universal Credit.

Question

High childcare costs are indeed a major barrier to parents returning to the workforce. Parents may need at least £1,000 in advance just for the first month's childcare fees when seeking employment. Can you explain how a parent on universal credit who wants to move back into work is supposed to fund these upfront childcare costs and then wait a month for reimbursement?

Answer from Mims Davies

I thank the hon. Lady for her point, encouraging employers to consider job design, flexibility and inclusive recruitment practices. Parents moving into work can receive support through the DWP flexible support fund for up-front childcare costs.

Partly answered

Not addressed: Did not address how parents manage upfront costs beyond mentioning existing funds without concrete details.

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