Childcare reforms announced in the Budget this year will support low-earning parents on Universal Credit in Mid Dorset and North Poole and across the country to get into work while being more confident that they can afford childcare costs.
Michael said:
We know that childcare costs are a challenge to people, and I am really pleased that the government are helping. Eligible parents on Universal Credit can now get up to £522 more a month, giving them more flexibility in their careers and family life. We have some fantastic childcare providers here in Dorset, and I am also pleased that through a new standalone top-up grant, local authorities will receive more funding.
Parents on Universal Credit can now claim up to £951 a month for one child or £1,630 for two or more children.
The Government will also help cover the costs for the first month of childcare when eligible parents enter work or increase their hours so that, from that point, parents should have the money to pay one month in advance rather than being stuck with upfront costs. This will be done by getting 85% of those costs back before the next bill is due.
From April 2024 there will be 15 free hours childcare available for working parents of two-year-olds, followed by 15 free hours from nine months in September 2024, and finally 30 free hours from nine months to the start of school from September 2025. The increase in funding for providers will take the average rate paid for places for three and four-year-olds from its current £5.29 per hour to £5.65 per hour, and take the average rate paid for places for two-year-olds from its current£6.00 per hour to £7.95 per hour.
