Martin Lewis warns millions of parents set to miss out on £522 childcare boost from today – check if you're affected | The Sun
MARTIN Lewis has warned that millions of parents are set to miss out on a £522 childcare boost from today.
It comes as those on Universal Credit who receive the childcare element will start to receive a bumper payment boost.
In a Good Morning Britain interview with Claire Coutinho, minister for children, families and wellbeing, the founder of MoneySavingExpert.com said: "This is a good move for people on Universal Credit.
"But there are still very substantial numbers of people who are still on legacy benefits and on the old tax credit system.
"The limits there, if we contrast it for one child, on Universal Credit you can claim up to £951 a month but if you're on the old legacy benefits system you can only claim up to £530 a month."
Martin asked the minister why the government hasn't equalised the support for those on tax credit.
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She said: "At the moment what we're doing is moving people onto Universal Credit.
"I would say if someone is looking at these different schemes, they should go and talk to their job coach, go and talk to their DWP Jobcentre to see what's the right decision for them."
From today, parents will get a payment boost and some will be able to request upfront childcare costs for some of those on Universal Credit will be paid upfront.
It's a huge win for The Sun's Make Universal Credit Work campaign, but thousands are still likely to miss out on upfront payments if they don't take action.
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The amount that parents can claim has gone up from £646 to £951 a month for one child.
Families with two kids will see their payments leap from £1,108 to £1,630 too.
The amounts remain capped at 85 per cent of childcare costs.
Most families won't see their childcare payments increase right away because of the way these are calculated over different “assessment periods”, depending on when they first claimed UC.
For some, the increase won’t come until August.
Parents who are already working and claiming childcare costs won’t get their payments upfront unless they change jobs or there is a “significant change” to their hours.
But those starting new jobs or increasing hours should be able to claim upfront costs.
The Department for Work and Pensions said parents need to up their hours by “at least a few hours more every week” to qualify for upfront childcare payments.
Parents increasing hours or starting new jobs must speak to their work to request that costs are paid upfront, the DWP said.
But those who don't claim Universal Credit and get support for childcare costs through tax credits won't see their payments change.
There are two types of tax credits – working tax and child tax credit.
They're given to people who are on low incomes, are registered as disabled or have children that are dependent on them.
The rates vary depending on your personal situation and there are a number of elements, but you can get up to £2,280 if you're eligible for the basic element of working tax credit or up to £3,235 if you claim the child element of child tax credit.
Universal Credit has replaced tax credits for new claimants, but many have not yet made the switch over to the newer benefit.
Everyone will be transitioned over to receiving Universal Credit eventually and by 2024, the government has said.
You can choose to move over to Universal Credit from tax credits at any time – but it is always best to check before doing so as you might not be better off.
You should consider carefully what moving over means for your money, as you can't move back once you're on Universal Credit.
The government estimates that around 700,000 tax credit claimants could be better off.
Using an online benefits calculator can help you compare and are free and easy to use from charities such as Turn2Us and EntitledTo, and it's also worth asking them for advice.
What is Universal Credit?
Universal Credit is a welfare scheme that was designed to combine a number of old "legacy benefits" into a single monthly payment.
Whether you are eligible will depend on your individual circumstances.
You may be eligible if you meet all of the following criteria:
- You’re on a low income or out of work
- You’re 18 or over (there are some exceptions if you’re 16 to 17)
- You’re under State Pension age (or your partner is)
- You and your partner have £16,000 or less in savings between you
- You live in the UK
How much is Universal Credit?
Universal Credit payments are made up of a standard allowance and then various additional payments that depend on your circumstances.
This is how much you will get as your standard allowance each month:
- Single, under 25 – £292.11
- Single, 25 or over – £368.74
- Couple, joint claimants both under 25 – £458.51 (for both)
- Couple, joint claimants, one or both 25 or over – £578.82 (for both)
You may also get additional payments depending on your circumstances.
You may be able to get a top-up if you have children:
- For those with a first child born before April 6, 2017, the extra amount is £315
- For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is £269.58
- For those with a disabled child, the lower rate additional payment is £146.31 and the higher rate is £456.89
If you have a disability you could get an extra amount depending on your circumstances:
- For those deemed to have limited capability for work, the extra amount is £146.31
- For those deemed to have limited capability for work or work-related activity, the extra amount is £390.06
Universal Credit claimants can get an additional amount if they're caring for a severely disabled person for at least 35 hours a week.
The amount you get is £185.86.
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You can also get an increased work allowance:
- The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is £631
- The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is £379
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