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<p>The Government recognises that childcare costs can affect parents’ decisions to
take up paid work or increase their working hours. We are committed to helping parents
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% on the legacy system. This can be claimed up to a month before starting a job,
and can be worth up to £13,000 a year for families with two children.</p><p> </p><p>Over
the last few months we have been trialling a more flexible approach to parents who
do not report their childcare costs on time. Following a successful pilot, we are
now updating our guidance, so that Work Coaches have more flexibility and discretion
to support parents’ claims for this essential service.</p><p> </p><p>The Universal
Credit childcare policy also aligns with the wider government childcare offer, which
includes free childcare hours and tax free childcare.</p>
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