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<p /> <p /> <p>It is well known that childcare costs can be a significant barrier
to maternal employment, which is why the Government is investing in childcare in Universal
Credit. Universal Credit will cover childcare costs for families where the lone parent
or both parents in a couple work any hours, whereas Tax Credits childcare support
is only payable past 16 hours worked per week. At Budget '14 the Government announced
an increase in the rate of childcare support in Universal Credit from 70% (as per
the current system) to 85% of eligible childcare costs, up to defined limits, from
April 2016. These measures combined mean that around 500,000 working families will
get more out of the money they earn, including 100,000 families who will get childcare
support for the first time under Universal Credit.</p><p> </p><p>We would expect the
changes in childcare support under Universal Credit to have a positive impact on work
incentives for mothers, affecting maternal employment rates and tax receipts from
mothers paying Income Tax and National Insurance.</p>
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