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<p>The Department listens to a range of stakeholders and considers recommendations,
such as those from Save the Children’s recent report, that may improve support for
our claimants. We have already improved Universal Credit’s (UC) childcare support;
for example, our Work Coaches are already providing increased support through the
Flexible Support Fund to help eligible claimants who need help with paying upfront
childcare costs, as well as allowing greater flexibility in when claimants can report
their childcare costs.</p><p><strong> </strong></p><p>As UC is paid as a single monthly
amount directly into people’s bank accounts, it helps families have control over their
own budget and making the move into work easier. However, we recognise that childcare
costs can affect parents’ decisions to both obtain and maintain employment and we
are committed to removing barriers that prevent parents moving into work.</p><p> </p><p>Claimants
are able to claim up to 85% of their childcare costs on UC, compared to 70% on the
legacy system. This can be worth up to £13,000 a year for families with two children.
The UC childcare policy aligns with the wider government childcare offer, which includes
free childcare hours and tax free childcare and, during 2019/20, a record amount of
£6 billion is being spent on childcare support overall. This offer means that reasonable
childcare costs should not form a barrier to work.</p><p><strong> </strong></p><p>We
are aware of the difficulty that some claimants might have in paying childcare costs
over the summer holidays and our work coaches are able to discuss this with them and
explain and promote both the UC childcare offer and the wider government childcare
offer. In addition to this, budgeting advances are available for eligible claimants
that can be used to cover the cost of paying additional upfront childcare cost or
a deposit that might be needed during the school holidays.</p>
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