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<p>The Government is committed to supporting parents with moving into work and, as
part of this, we have increased the level of ongoing financial support for childcare
costs from 70 per cent in legacy benefits to up to 85 per cent in Universal Credit,
which is called the ‘childcare element’. The Universal Credit childcare policy aligns
with the wider government childcare offer, which includes free childcare hours and
tax free childcare. This offer means that reasonable childcare costs should not form
a barrier to work.</p><p> </p><p>Beyond the Universal Credit childcare element, there
is other financial support to help with childcare costs: the Flexible Support Fund
and Budgeting Advances. Claimants are able to discuss eligibility for these with their
jobcentre work coach.</p><p> </p><p>Where initial upfront childcare costs or deposits
may prevent a claimant from starting work, work coaches have the discretion to use
the Flexible Support Fund to support the transition into work until a claimant receives
their first wage. Individual claimant circumstances are considered each time assistance
may be appropriate.</p><p> </p><p>A budgeting advance can help with one-off urgent
financial events for Universal Credit claimants, such as upfront childcare, and is
repayable over a period of up to 12 monthly instalments. Only one Budgeting Advance
will be paid at a time and further advances will be unavailable until the balance
of the previous Budgeting Advance is cleared.</p><p> </p><p>The Department is working
hard to ensure that the Universal Credit childcare offer continues to operate effectively
for claimants. Since February 2018, Universal Credit claimants have been able to upload
digital copies of their childcare cost receipts or invoices through their online Universal
Credit account. When parents have good reason for late reporting of their childcare
costs, the Department is piloting a more flexible approach to enable parents to be
reimbursed at a later point.</p>
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