Increase in Maximum Childcare payments

In addition, DWP confirms that, from the same date, claimants will be able to receive help with their childcare costs up front when they enter work or significantly increase their hours.

The DWP has confirmed that the maximum childcare payments in Universal Credit will be increased next month.

Following the announcement in the Spring Budget, Universal Credit childcare cost maximum amounts will be increasing to £950.92 for one child and £1,630.15 for two or more children - up from the previous limits of £646.35 and £1,108.04 respectively - the DWP has today confirmed that the changes will take effect from 28 June 2023.

In addition, the Department says -

'At the same time, the Government will help eligible parents cover the costs for the first month’s childcare when they enter work or significantly increase their hours...

Those parents will also receive up to 85 per cent of their childcare costs back before their next month’s bills are due – meaning they should have money to pay one month in advance going forward.'