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Working parents who claim Universal Credit could receive a cash boost of £1,630 towards their monthly childcare costs from today .
into work, including more than two million parents who claim Universal Credit. The changes are a key part of the Government’s drive to reduce economic inactivity announced in March's 'back to work' budget.Of around 5.8 million people who claim Universal Credit, 40% are in employment.
With average full-time nursery fees costs running at around £263 per week and £228 for a childminder, according to the National Childbirth Trust , parents can struggle to return to work as they have to find the first month's fees in advance before getting any support. Eligible parents will now receive up to 85% of those childcare costs back before their next month’s bills are due – meaning they should have money to pay one month in advance going forward.
The Department for Education is also launching a consultation to boost the early years workforce and remove unnecessary burdens that the childcare sector face in preparation for the expansion to free childcare from next year. From April 2024, working parents will be able to access 15 free hours for two-year-olds, which will be expanded to 15 free hours from nine months to the start of school from September 2024, rising to 30 free hours from September 2025.
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