If you’re a working parent receiving Universal Credit, you could be entitled to reclaim up to 85% of your childcare expenses—a major boost for families trying to balance work and rising childcare costs. To qualify, you must either be employed or have a job offer lined up.

Good news: there’s no minimum number of hours you need to work to claim this support. However, if you live with a partner, they must also be employed unless they are unable to work due to a health condition or disability.

How Much Can You Claim?

• For one child: Up to £1,031.88 per month

• For two or more children: Up to £1,768.94 per month

You can claim for any child under 16 whom you are responsible for. Eligible childcare providers include registered nurseries, preschools, childminders, nannies, after-school and breakfast clubs, and holiday clubs.

Important Tips for Claiming Childcare Costs

• Submit claims promptly: It’s best to report your childcare costs as soon as you pay them. Waiting longer than two months could mean missing out on reimbursement.

• Past and future childcare: You can claim for childcare costs going back up to three months or even up to three months in advance. However, for future costs, you won’t be reimbursed until the care is provided.

• Proof of payment: Be ready to upload a letter, invoice, or bank statement showing you’ve paid for childcare.

• Monthly repayment: Universal Credit pays childcare costs monthly during your relevant assessment period—not as a lump sum.

Special Support for New Jobs or Increased Hours

If you’re starting a new job, increasing your working hours, or even have a job offer, you might be able to get your childcare costs paid upfront. This helps parents avoid paying large fees out of pocket before their first paycheck arrives. You may also qualify if you’re on statutory sick pay, maternity, paternity, shared parental, adoption pay, or maternity allowance.

Fun fact: With childcare costs being one of the biggest barriers to returning to work, this upfront support is a game-changer for many families!

Universal Credit Rates (2025 Update)

Here’s a quick breakdown of the current Universal Credit rates after the recent 1.7% increase:

Standard Allowance:

• Single under 25: £316.98 per month

• Single 25 or over: £400.14 per month

• Joint claimants both under 25: £497.55 per month

• Joint claimants, one or both 25 or over: £628.10 per month

Child Element:

• First child (born before April 6, 2017): £339 per month

• First child (born on/after April 6, 2017) or second/subsequent child: £292.81 per month

• Disabled child (lower rate): £158.76 per month

• Disabled child (higher rate): £495.87 per month

Limited Capability for Work:

• Limited capability for work: £158.76 per month

• Limited capability for work-related activity: £423.27 per month

Carer Element:

• £201.68 per month

Work Allowance:

• Higher (no housing amount): £684 per month

• Lower (with housing amount): £411 per month

Childcare Costs Element:

• Maximum for one child: £1,031.88 per month

• Maximum for two or more children: £1,768.94 per month

FAQs About Childcare Costs and Universal Credit

Q: How soon after paying for childcare should I report the cost?
A: As soon as possible. If you wait more than two months after payment, you may lose your right to claim it back.

Q: Can I get help before I actually start my new job?
A: Yes! If you have a job offer, you can still claim upfront childcare costs even if you haven’t started work yet.

Q: What types of childcare qualify for reimbursement?
A: Registered nurseries, preschools, after-school clubs, breakfast clubs, holiday clubs, childminders, and even some nannies qualify.

Q: Will Universal Credit cover 100% of my childcare costs?
A: No, Universal Credit will reimburse up to 85% of eligible childcare costs, up to the monthly maximum.

Q: Is there a deadline for claiming past childcare costs?
A: Yes, you can claim for childcare costs up to three months retroactively—but don’t wait too long, or you could miss out!

Q: What happens if I increase my income?
A: Universal Credit uses a taper rate of 55%, meaning for every extra £1 you earn, 55p is deducted from your benefit. However, work allowances help soften this effect if you qualify.