On Friday 31 March, the government responded to the Work and Pensions Select Committee’s report into Universal Credit and childcare costs, agreeing to adopt many of its recommendations. The Work and Pensions Select Committee, which Stephen chairs, published its report on 20 December 2022.
The Select Committee’s report called for the government to pay Universal Credit childcare costs upfront, raise the cap on total costs eligible for support, and offer more guidance to parents on the support available. In response, the government raised the cap to £950.92 for one child and £1,630.15 for two children, from £646.35 and £1,108.04 respectively, and announced plans to move from paying parents in arrears to covering costs upfront.
Reacting to the news, Stephen said, “Important victories have been scored in the increase to the childcare cap for Universal Credit claimants and upfront payments for childcare that will liberate parents to be supported to take up work.”
However, Stephen remained critical of the government’s decision to reject the committee’s recommendations on guidance and work coach training, adding, “we still think that more can be done to ensure that parents claiming Universal Credit are made fully aware of the childcare options open to them. Work Coaches should be properly trained to provide this information effectively.”