Universal Credit Payments with childcare element receiving the maximum amount between August 2020 and July 2021
Published 12 October 2021
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This publication is available at https://www.gov.uk/government/statistics/universal-credit-payments-with-childcare-element-receiving-the-maximum-amount-august-2020-to-july-2021/universal-credit-payments-with-childcare-element-receiving-the-maximum-amount-between-august-2020-and-july-2021
Main Stories
The statistics show:
- between August 2020 and July 2021 the proportion of UC claims with childcare element in payment who are receiving the maximum amount for childcare costs has remained stable at 8% on average
- there are disparities between London and outside of London, 23% of UC payments with childcare element in London are receiving the maximum amount vs 6% of UC payments with the childcare element outside of London are receiving the maximum amount
Background
Universal Credit (UC) reimburses up to 85% of eligible childcare costs, up to a maximum amount each month of £646.35 for one child and £1,108.04 for two or more children.
In order to qualify for claiming UC childcare costs, either the claimant, or both the claimant and partner must usually:
- be in paid work, or have accepted an offer of paid work (it does not matter how many hours the claimant or partner work)
- pay for childcare for the relevant child or young person
Paid work does not include being engaged by a charitable or voluntary organisation or being a volunteer (where the only payment is expenses).
There is no minimum number of hours a claimant is expected to work before being able to claim childcare costs through UC. In addition, the UC childcare policy aligns with the wider government free childcare offer which means that eligible parents can claim their 15 or 30 hours of free childcare for 2 to 4 year olds and top up for additional hours needed via UC.
Where parents need help to pay for their first set of childcare costs prior to starting work, work coaches can use the Flexible Support Fund for eligible claimants to meet these costs until their first wage is received.
Read further information on the childcare offer for UC claimants.
Commentary
Table 1: Number and proportion of Universal Credit payments receiving the maximum amount for childcare costs, by month of UC Payment, between August 2020 and July 2021
| Month of UC payment | Number of UC payments with childcare element | Number of UC payments with childcare element that are receiving the maximum amount for childcare costs | Proportion of UC payments with childcare element that are receiving the maximum amount for childcare costs |
|---|---|---|---|
| Aug 2020 | 46,800 | 4,400 | 9% |
| Sep 2020 | 59,100 | 5,200 | 9% |
| Oct 2020 | 74,900 | 6,000 | 8% |
| Nov 2020 | 81,400 | 6,800 | 8% |
| Dec 2020 | 81,500 | 6,700 | 8% |
| Jan 2021 | 76,700 | 5,600 | 7% |
| Feb 2021 | 71,300 | 6,700 | 9% |
| Mar 2021 | 75,000 | 5,900 | 8% |
| Apr 2021 | 85,800 | 7,600 | 9% |
| May 2021 | 92,600 | 7,500 | 8% |
| Jun 2021 | 98,700 | 8,500 | 9% |
| Jul 2021 | 101,600 | 9,100 | 9% |
Notes:
- Figures are for GB only
- UC Payments in this table represent the number of UC claims that had a payment due within the month
- Numbers have been rounded to the nearest 100 and percentages to the nearest 1%
- Figures for the most recent months are provisional and may be subject to minor change
Number and Proportion of UC payments subject to the childcare cost cap Aug 2020 to July 2021
The proportion of UC payments with childcare element who are receiving the maximum amount for childcare costs has remained stable at 8% on average over the most recent 12 months. UC Payments represent the number of UC claims that had a payment due within the month.
The number of UC claims with the childcare element in payment has been gradually increasing over the past 12 months, in line with the increasing UC caseload. December 2020 saw a decrease as a result of the COVID-19 pandemic, whereby the national lockdown had an impact on the number of claimants using childcare.
Table 2: Number and proportion of Universal Credit payments receiving the maximum amount for childcare costs, by region, between August 2020 and July 2021
| Region | Number of UC payments with childcare element | Number of UC payments with childcare element that are receiving the maximum amount for childcare costs | Proportion of UC payments with childcare element that are receiving the maximum amount for childcare costs |
|---|---|---|---|
| GB Total | 945,400 | 80,000 | 8% |
| London | 116,100 | 26,700 | 23% |
| East of England | 69,400 | 5,700 | 8% |
| South East | 106,800 | 8,300 | 8% |
| West Midlands | 86,400 | 6,800 | 8% |
| North West | 150,000 | 10,000 | 7% |
| Wales | 40,500 | 2,400 | 6% |
| East Midlands | 73,200 | 4,100 | 6% |
| Scotland | 54,200 | 3,100 | 6% |
| Yorkshire and The Humber | 84,500 | 4,100 | 5% |
| North East | 32,500 | 1,500 | 4% |
| South West | 78,400 | 3,400 | 4% |
| Unknown Region | 53,600 | 4,000 | 7% |
Notes:
- Figures are for GB only
- There may be multiple UC payments for the same UC claim in this table, as a claim may have had a payment due in multiple months
- Numbers have been rounded to the nearest 100 and percentages to the nearest 1%
- Figures are provisional and may be subject to minor change
- “Unknown Region” indicates a claim for which geographic data was not available, but for which a claim is assigned to a GB jobcentre
There are some regional disparities, primarily between London and outside of London. 23% of payments with childcare element in London are receiving the maximum amount for childcare costs vs 6% of payments with the childcare element outside of London are receiving the maximum amount. These figures are based on the August 2020 to July 2021 data.
About these statistics
The data in this publication has been compiled using 100% administrative data extracts containing Universal Credit claims from the UC system.
Claims with childcare element in payment each month is defined as the number of UC claims with a payment due in each month where there was a childcare element entitlement.
Claims with childcare element in payment who are receiving the maximum amount for childcare costs is defined as the number of UC claims where the childcare entitlement amount was equal to the cap amount.
UC payments when looking at 1 month of data represent the number of UC claims that were due a payment within the month.
UC payments over a longer time period can include multiple UC payments for the same UC claim, as a claim may have had a payment due in multiple months.
The childcare cost cap is the limit on the maximum amount that can be claimed towards childcare costs.
The region information is derived from the claimant residential address, and this is not present for all households in the UC data source. Therefore, there is a small number of households with Unknown region information.
Statement of compliance with the Code of Practice for Statistics
The Code of Practice for Statistics (the Code) is built around 3 main concepts, or pillars:
- trustworthiness – is about having confidence in the people and organisations that publish statistics
- quality – is about using data and methods that produce statistics
- value – is about publishing statistics that support society’s needs
The following explains how we have applied the pillars of the Code in a proportionate way.
Trustworthiness
The figures were created following the Work and Pensions Select Committee (September 2021) in order to provide a response to questions asked by the committee. They are being published now in order to give equal access to all those with an interest in them.
Quality
The data which underpins this information is taken directly and solely from Universal Credit administrative data. Analysis of the authority returns has undergone review by analysts. The methodology and calculations have been quality assured by DWP analysts to ensure they are the best estimates using information available at the time.
Value
Releasing this information serves the public interest in the number and proportion of UC claims affected by the cap on childcare costs, making available more timely data.
Further information and feedback
Lead Statistician: Steve Ellerd-Elliott
Analysts: A Mays, H Capocci, & S Lewis
Contact DWP Press Office if you have any questions or feedback.