Changes to universal credit childcare costs provisions from 28 June 2023

New DWP guidance on disregard of upfront childcare cost met by the Flexible Support Fund and increase in maximum amounts of childcare costs element

The DWP has issued new guidance on changes to universal credit childcare provisions introduced by the Universal Credit (Childcare) (Amendment) Regulations 2023 (SI.No.593/2023).

In ADM Memo 12/23, the DWP advises that –

'When considering the charges for the provision of childcare in the calculation of childcare costs, amounts met by other relevant support are not included and any childcare charges are reduced by that amount in the calculation. Other relevant support includes payments from the Flexible Support Fund (FSF).'

However, the DWP adds that from 28 June 2023 – the date the regulations come into force – payments from the FSF are not considered other relevant support and can be included in the amount of childcare charges providing the following conditions are met –

• the claimant has taken up, or is due to take up, paid work or has increased, or is due to increase, their hours of work; and
• the claimant is required to pay childcare charges before any universal credit entitlement reflects the increase in the claimant’s earned income; and
• the claimant is less likely to take up paid work or increase the hours of work if the FSF payment was not included.

In addition, the DWP confirms that, from 28 June 2023, the maximum amounts for the childcare costs element of universal credit increases to £950.92 in respect of one child and £1,630.15 for two or more children.

ADM Memo 12/23 is available from gov.uk