One mum has explained how she got a payment of nearly £1,000 from the Department for Work and Pensions (DWP) to help cover childcare costs.
In June this year, the DWP raised how much parents on Universal Credit can claim for childcare. The move meant parents could claim back £951 for one child and £1,630 for two or more children. This is up from the previous caps of £646 for one child or £1,108 for two or more children.
Alongside this, the DWP would help eligible parents cover the costs for the first month of childcare when they begin working or increase their working hours. Ashley Jacobs, 32, from Hackney, was working with her local JobCentre to find work. However, she said the process was "challenging" as she struggled to find affordable childcare.
To cover the cost of the care she needed to get back into work, Ashley believed that she would be forced to take out a loan or cut back on her already stringent essentials. After the new support was introduced, Ashley's work coach informed her that she was eligible to claim nearly £1,000 to pay her childcare costs upfront. This eased Ashley's worry over the payments and due to this, she was able to accept a job in social care.
She told the Mirror: “As soon as my Work Coach, Ali, told me I was eligible for the new upfront childcare support a weight was instantly lifted from my shoulders. There was no need for me to re-budget, take out a loan or go without to pay the eye-watering £1,000 deposit for the first month’s childcare. If it wasn’t for the help of Ali, I wouldn’t be in the job I’m in today.”
Ashley isn't the only parent to benefit from the new support. Hannah Lee, a single mum of three from Lancashire recently landed a new job at her local council but like Ashley was worried she would not be able to afford high childcare costs while working.
After talking to her work coach, Hannah found out she was also eligible for help. She then received 85% of her childcare cost in her monthly Universal Credit payment. The DWP then paid for two months' worth of childcare for Hannah's two-year-old son upfront. This payment allowed Hannah to cover the cost of childcare until she got her first wage slip.
Hannah told The Mirror that the support has helped her immensely as without it she would not have been able to accept the job. Hannah said: "In January, I was offered a job at Wigan Council as an Engagement Officer. I was absolutely thrilled about it as this was a job I really wanted, but I didn’t know how I was going to meet the high childcare costs for my two-year-old son.
"To help me get on my feet, they also paid the first two months of childcare upfront for me until I got my first wage. Without this support, I could not have accepted the job. Being back at work and being able to give my children little treats means the world to me. My two older children are happy that we can now go out more as a family and I’m loving my job”.
Minister for social mobility, youth and progression, Mims Davies MP said that it was "fantastic" to see Ashley and Hannah benefit from the new DWP support.
She added: “As a single parent, I’m determined to help ensure others have the chance of similar career and employment progression opportunities because of the right support. It’s an essential part of our plan to increase people’s financial independence and grow the economy by getting more people into jobs and filling the brilliant vacancies that are just down the road from them.”
How to claim childcare support from DWP
To get this help, you and any partner, must be claiming Universal Credit and be working or due to start work. This specific support is provided when parents enter the work force or significantly increase their hours. You can get the help if you have children under the age of 17 years and are not receiving Tax-Free Childcare.
According to the Government's website, you can use it to help pay:
- Registered childminders, nurseries, and nannies
- Registered after-school clubs and playschemes
- Registered schools
- Home care workers working for a registered home care agency
Parents who need this help are told to speak to their Universal Credit work coach who can provide more information on what financial help they could be eligible for. The DWP says you can also use a benefits calculator to see how much you might get.