Scrap free childcare for rich Brits to help those struggling on Universal Credit, MPs demand

In a damning report they said it was "unacceptable" that the poorest households were struggling with childcare when the Government was helping everyone earning up to £200,000.

Influential MPs on the Work and Pensions committee demanded that money is diverted from the tax free childcare scheme and the 30 hours a week free childcare fund towards money for those on UC.

The news comes just after The Sun launched our Make Universal Credit Work campaign, calling on ministers to make vital changes to the system before its too late.

We want the DWP to pay childcare costs upfront for Brits struggling on the new welfare system, rather than leaving them for weeks and months to try and claim it back.

The report says childcare in the new system, which claimants can get up to 85 per cent back, is actually STOPPING parents from returning to the workplace.

Rt Hon Frank Field MP, Chair of the Committee, said: “If the Government had set out to design a system to make it harder for parents to get into work, it could hardly have done better than this one.

"It’s not just driving parents into despair and debt and creating problems for childcare providers — it’s also actively working to prevent the Government achieving its own aim of getting more people into work."

The Sun wants to Make Universal Credit Work

One million people are already receiving it and by the time the system is fully rolled out in 2023, nearly 7 million will be on it.

But there are big problems with the flagship new system – it takes 5 weeks to get the first payment and it could leave some families worse off by thousands of pounds a year.

And while working families can claim back up to 85 per cent of their childcare costs, they must find the money to pay for childcare upfront – we’ve heard of families waiting up to 6 months for the money.

Working parents across the country told us they’ve been unable to take on more hours – or have even turned down better paid jobs or more hours because of the amount they get their benefits cut.

It’s time to Make Universal Credit work. We want the government to:

Together, these changes will help Make Universal Credit Work.

Join our Universal Credit Facebook group or email [email protected] to share your story. 

The DWP says Brits can get budging advances to help with childcare costs, but these loans have to be paid back immediately and can leave Brits drowning in debts.

Ministers also say that flexible support funds can be accessed in every job centre, but MPs described this as the "biggest secret" – little known and under-used.

Mr Field added that it was "simply irresponsible of Government to suggest that the way around this policy’s inherent problems is for struggling, striving parents to take on more debt – still more so to claim, untruthfully, that it is not a debt at all.

"It clearly is."

MPs recommend that the DWP pay childcare costs on Universal Credit directly to the childcare provider whenever possible, and would slash the risk of debt and fraud in the system.

Are you on Universal Credit. Tell us your story! Email us: [email protected]

They also want the payments to be weighted for people who live in London and face higher costs, and increasing them based on the number of hours worked.

Steven McIntosh, Save the Children’s Director of UK Policy, Advocacy and Campaigns, said of the report: "Childcare support under Universal Credit doesn’t work for families. Parents are forced to pay sky-high costs upfront before waiting weeks to be paid back."

The Sun told this week how a single dad was better off not working due to the sky high cost of childcare.

Trevor Carpenter became a single dad overnight when his three year old he didn't know existed became homeless.

What to do if you have problems claiming Universal Credit

IF you’re experiencing trouble applying for your Universal Credit, or the payments just don’t cover costs, here are your options:

Apply for an advance – Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it’s a loan which means the repayments will be automatically deducted from your future Universal Credit pay out.

Alternative Payment Arrangements– If you’re falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you’re part of a couple.

Budgeting Advance – You may be able to get help from the government to help with emergency household costs of up to £348 if you’re single, £464 if you’re part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You’ll have to repay the advance through your regular Universal Credit payments. You’ll still have to repay the loan, even if you stop claiming for Universal Credit.

Cut your Council Tax – You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your payments aren’t enough to cover your rent.

Foodbanks – If you’re really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the Trussel Trust website.

He went on: "This can leave families facing a choice between mounting debts or being forced to turn down jobs.

"Common sense changes would ensure childcare helps families on Universal Credit into work and out of poverty.

"Today’s report makes achievable recommendations that the government must follow before Universal Credit is rolled out further."

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