The Department for Work and Pensions (DWP) has confirmed that Universal Credit childcare costs can be claimed up to three months in advance. The clarification follows concerns about families with disabled children who may need to secure specialist childcare several months before it is required.
MP raises concerns over advance payments
Labour MP Peter Swallow asked the DWP what support is available for parents of disabled children who need to pay childcare costs in advance. In a written response, Minister for Social Security and Disability Sir Stephen Timms confirmed that eligible working parents receiving Universal Credit can receive help with up to 85 per cent of their childcare costs.
Sir Stephen also confirmed that childcare costs can be claimed up to three months before the childcare takes place, although the money is reimbursed in the assessment period in which the childcare is actually provided.
Reimbursement process explained
Sir Stephen said: “Universal Credit childcare costs can be claimed up to three months in advance, however the childcare costs are reimbursed in the assessment period in which the childcare is provided.”
The DWP said the support is available regardless of the number of hours a claimant works. Universal Credit childcare support is generally paid in arrears, meaning parents normally pay their childcare provider first and then report the cost through their Universal Credit account.
Flexible Support Fund for upfront costs
The DWP Minister also highlighted separate help available through the Flexible Support Fund for eligible parents who face upfront childcare costs when moving into work or increasing their working hours. This can help with the initial cost of childcare before the usual Universal Credit reimbursement arrangements take effect.
Sir Stephen said Work Coaches can use the Flexible Support Fund to help eligible parents with upfront childcare costs where this is a barrier to starting work or increasing their hours.
Reporting requirements and limits
Claimants must report their childcare costs within the required time limits to receive support. The childcare must also be provided by an approved childcare provider. The amount someone can receive depends on their actual childcare costs, with Universal Credit covering up to 85 per cent of eligible costs subject to maximum monthly limits.
The latest clarification could be particularly useful for parents who need to plan childcare well in advance, including families who rely on specialist provision for a disabled child. However, claiming a future childcare cost in advance does not mean the Universal Credit contribution will also be paid early. The DWP's response makes clear that reimbursement is made during the assessment period in which childcare is actually provided. Details about childcare costs can be reported through a claimant's online Universal Credit account.
