MUMS on Universal Credit should get ALL of their childcare costs paid – and get it upfront too, experts have said.
Parents should get more help with their childcare under the new flagship benefits system to try and get more people into the work place, a fresh report from the Centre for Social Justice and Save the Children recommended.
The groups said that money should be taken out of childcare programmes for richer Brits and given to those struggling on Universal Credit instead.
Parents can get up to 85 per cent of childcare costs paid back on the new welfare programme – but it can take months to get it back.
The experts say they should increase this to 100 per cent for those who need it, and it should be paid a month in advance when possible.
And that should be paid for by reducing the earnings threshold for those who can get the governments 30 hours of free childcare and tax free help – at the moment parents who earn up to £100k can get it.
Mum-of-two Lucy had to save for several months to be able to afford to go back to work – around £850 – and is now running out of money every month.
She said: “You end up paying out the most important things – rent and nursery. Then towards the end of the month there’s nothing left for anything else… It’s been a very stressful and unpleasant experience.
“If we don’t get the right payment I’m going to have to borrow off my family. I’ve got £5 in the bank.”
And Jenny, a single mother with a three-year-old has just been offered a job, but doesn’t know how she will pay for it.
She added: “It’s crazy that you’re putting yourself into debt for this.
“And I don’t know if I’ll be able to afford to pay it back because I don’t know what my wages will be under universal credit.”
Childcare is still the number one barrier to work for parents in England, the report said.
Half of mums would go to work if they could get suitable childcare.
With more help, even more parents could be helped into the workplace and out of poverty it concludes.
Labour’s Angela Rayner said: “There is simply no justification for those families that most need this support being locked out of the system. This simply entrenches inequality, makes it harder for children to succeed, and leaves parents, mostly mothers, unable to return to work.”
Andy Cook, chief executive of the Centre for Social Justice, said: “Every penny invested in universal credit goes straight to those who need it most. It is also a system designed to make sure work always pays.
“By increasing the childcare allowance for those on universal credit, those who are currently disincentivised to move into work would no longer face that barrier.
“It is fair that money otherwise going to couples with a joint income of £200,000 should be invested in the country’s most disadvantaged.”
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And Steven McIntosh, Director of UK Poverty Policy, Advocacy & Campaigns for Save the Children said: “It’s simply not right that the highest earners get support for childcare costs, while families on low incomes are struggling to afford childcare.
“By focusing help with childcare bills on those most in need, the Government could make a powerful offer to struggling parents – if you’re returning to work on the lowest wages, Universal Credit will cover all your childcare costs.”
Mums have taken the Government to court over Universal Credit this week – because of the unfair way it takes into account earnings.
And one single mum fears she will be evicted after losing her battle for benefits help.
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News Pictures Mums on Universal Credit should get ALL of their childcare costs back and paid upfront, experts say
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