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<p>The Government recognises that childcare costs can affect parents’ decisions to
both obtain and maintain employment and is committed to removing barriers that prevent
parents moving into work.</p><p> </p><p>To overcome this barrier to employment, Universal
Credit claimants are able to claim up to 85 per cent of their childcare costs, compared
to 70 per cent on the legacy system. This can be worth up to £13,000 a year for families
with two children.</p><p> </p><p>We recognise the difficulty that some claimants might
have in paying childcare costs over the summer holidays and have undertaken significant
work to increase work coach awareness, understanding and promotion of both the Universal
Credit childcare offer and the wider government childcare offer. This is to ensure
that parents who are eligible for the 15 hours of free childcare for disadvantaged
families with 2-year-old children, and 30 hours of free childcare for working families,
take these up. These free childcare offers can be used in combination with Universal
Credit support for childcare.</p><p> </p><p>In addition to this, budgeting advances
are available for eligible claimants that can be used to cover the cost of paying
additional upfront childcare costs or a deposit that might be needed during the school
holidays.</p>
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