If you are a working parent in the UK and struggling to manage childcare expenses, Universal Credit can help cover a big part of your childcare costs. The UK government offers a way for parents to claim back up to 85% of childcare costs if they qualify. In this guide, we’ll explain how the system works, how much you can claim, and who is eligible.
What Is Childcare Support Under Universal Credit?
Universal Credit is a benefit paid monthly to people on low income or who are out of work. It includes support for different living costs like rent, children, and disabilities. For working parents, one important part of Universal Credit is help with childcare costs.
If you are working or have a job offer, you can get up to 85% of your childcare fees refunded, which can really reduce your monthly expenses.
How Much Can You Claim?
You can claim back:
- Up to £1,031.88 per month for one child
- Up to £1,768.94 per month for two or more children
This applies to children under the age of 16 who live with you and for whom you are responsible.
What Types of Childcare Are Covered?
The childcare must be from a registered provider, which includes:
- Nurseries and preschools
- Childminders and nannies
- After-school clubs and breakfast clubs
- School holiday schemes
Make sure the childcare provider is registered with Ofsted or the relevant body in Scotland, Wales, or Northern Ireland.
When and How to Claim Childcare Costs
You need to report your childcare payments through your Universal Credit online account. You can claim:
- Up to 3 months in arrears (past childcare payments)
- Up to 3 months in advance, but you will only be reimbursed after the care is provided
You should report costs as soon as you pay them, because if you wait more than 2 months, you might not get your money back. You’ll also need to submit proof, such as a bill, invoice, or bank statement.
Can You Get Help Before You Start Work?
Yes, if you have a job offer or are about to increase your work hours, you may get help upfront to pay for childcare. This helps many parents take on jobs without worrying about paying childcare fees in advance.
Who Else Is Eligible?
You may still get childcare support if you or your partner (if you live together) are:
- Getting statutory sick pay
- On maternity, paternity, shared parental, adoption leave
- Receiving maternity allowance
Both partners usually need to be working, unless one is unable to care for children due to illness or disability.
How Universal Credit Works with Income
Universal Credit has a taper rate. This means your payment reduces as your income goes up. The taper rate is 55%, which means for every £1 you earn, your payment is reduced by 55p.
Some people have a work allowance, which is a certain amount you can earn before the taper rate starts:
- £684/month if you don’t receive housing support
- £411/month if you do
Monthly Universal Credit Standard Rates
Standard Allowance (2024-25)
Single under 25: £316.98/month
Single 25 or over: £400.14/month
Joint under 25: £497.55/month
Joint 25 or over: £628.10/month
Child Element
First child (born before April 6, 2017): £339/month
Other children or born after: £292.81/month
Disabled child (lower rate): £158.76/month
Disabled child (higher rate): £495.87/month
Limited Capability for Work
Basic: £158.76/month
Work-related activity: £423.27/month
Carer Element
£201.68/month
Childcare Costs Element
Max for one child: £1,031.88/month
Max for two or more: £1,768.94/month
Childcare can be a huge expense for working parents, but Universal Credit can help make it more affordable. By refunding up to 85% of your childcare costs, it allows parents to work or take job offers without being held back by high nursery or after-school fees. If you’re eligible, don’t wait—report your payments quickly and make sure to claim everything you’re entitled to. Every little bit helps when it comes to supporting your family and balancing work life.
FAQs
Can I claim childcare costs through Universal Credit?
Yes, if you’re working or have a job offer, you can claim back up to 85% of your childcare costs through Universal Credit.
How much childcare cost can I claim monthly?
You can claim up to £1,031.88 per month for one child or £1,768.94 for two or more children under Universal Credit.
Do I have to work full time to get childcare help?
No, there is no minimum number of hours. But you must be in work or have a confirmed job offer to claim.
What proof do I need to provide?
You must show a letter, invoice, or bank statement proving you paid a registered childcare provider. You should report this as soon as possible.
Can I claim childcare costs in advance or for the past?
Yes, you can claim up to 3 months in arrears or 3 months in advance. However, payments for advance claims are made only after the childcare has been delivered.
