Published On: Tue, Aug 27th, 2019

How does Universal Credit pay childcare? Amount parents may get to pay for childcare costs | Personal Finance | Finance


If a person is on a low income or is out of work, then it may be that they can get Universal Credit. The amount that one gets is made up of the standard monthly allowance, plus any extra amounts which one may be entitled to receive. The standard amount is affected by a person’s particular circumstances. For instance, if a single applicant is under the age of 25, they can currently get £251.77 as the monthly standard allowance.

This rises to £317.82, should the single person be aged 25 or older.

Those in a couple and both under 25 can get £395.20, while this is £498.89 for both if at least one partner is 25 or older.

Extra amounts may apply such as if a person has children, has a disability or health condition which prevents one being able to work, or needs help paying rent.

In addition to the extra monthly amount for a child, second child, and any other eligible children, some may need help with childcare costs.

In these cases, up to 85 per cent of the costs may be paid.

This is limited to up to £646.35 for one child, and £1,108.04 for two or more children.

If they are a prisoner, a student, not a British or Irish citizen, on strike, living outside of the UK, or living permanently in residential care or a nursing home, then the government warns them that the calculator may not provide accurate results.

Universal Credit is replacing six types of welfare benefits, known as legacy benefits.

These are:

  • Child Tax Credit
  • Housing Benefit
  • Income Support
  • income-based Jobseeker’s Allowance (JSA)
  • income-related Employment and Support Allowance (ESA)
  • Working Tax Credit

The Department for Work and Pensions (DWP) has confirmed that a pilot scheme for the movement of existing legacy benefits recipients who have not had a change in circumstances onto Universal Credit has begun, with this taking place in Harrogate, North Yorkshire.



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