Official Statistics

Universal Credit childcare element statistics, March 2021 to August 2024

Published 12 November 2024

Applies to England, Scotland and Wales

1. Main stories

• In August 2024, 165,000 households received the Universal Credit (UC) childcare element, of which 133,000 were single households and 32,000 couple households.

• The average amount of childcare element received was £410 in August 2024. This was higher in London (£660).

• In August 2024, 3% of childcare element households received the maximum amount of childcare element available.

• In August 2024, 28% of households on Universal Credit with pre-school children and in which all claimants had earnings received the childcare element. For households on UC whose youngest child was primary school age, the proportion was lower (9%), and for households whose youngest child was secondary school age, it was lower still (less than 1%). Overall, 13% of households with children and in which all claimants had earnings received the UC childcare element in August 2024.

2. What you need to know

Universal Credit (UC) childcare element reimburses up to 85% of eligible childcare costs, up to a maximum amount. The maximum amount increased in June 2023, from £646.35 to £950.92 for one child and from £1,108.04 to £1,630.15 for 2 or more children. It increased again in April 2024 to £1014.63 for one child and to £1,739.37 for 2 or more children.

To qualify for the childcare element, the claimant (or, where a couple is claiming, both claimants), must usually be in paid work or have accepted an offer of paid work and pay for childcare for the relevant child or young person.

UC households can also make use of other types of childcare, which do not require the childcare element. These include the wider government offer of free childcare for pre-school children.

Further information on the childcare offer for UC claimants can be found here: Universal Credit: childcare guide - GOV.UK (www.gov.uk)

3. Households receiving the childcare element

Figure 1: Universal Credit households receiving childcare element, August 2022 to August 2024

Figure 1: Universal Credit households receiving childcare element, August 2022 to August 2024

In August 2024, 165,000 households received the childcare element, of which 133,000 were single households and 32,000 were couples. These figures have fallen in line with similar falls in previous years, which is likely to be because households use childcare less during holiday periods. In June, July and August and again in November and December, in both 2022 and 2023, the number of households receiving the childcare element also fell slightly.

Figure 2: Universal Credit households receiving childcare element, by age of youngest child, August 2024

Figure 2: Universal Credit households receiving childcare element, by age of youngest child, August 2024

More than half of households (55%) receiving the childcare element have a youngest child aged 3 years or younger, with the number of households decreasing as the age of youngest child increases.

4. Average amount of childcare element

Figure 3: Mean amount of Universal Credit childcare element, August 2022 to August 2024

Figure 3: Mean amount of Universal Credit childcare element, August 2022 to August 2024

In August 2024, the average (mean) amount of childcare element was £410. This has increased from £390 in August 2023, which is likely to be due to the rise in the maximum amounts in April 2024 and also childcare costs increasing.

Figure 4: Distribution of Universal Credit childcare element amounts, August 2024

Figure 4: Distribution of Universal Credit childcare element amounts, August 2024

In August 2024, over half of households receiving the childcare element received £300 or less.

Figure 5: Mean Universal Credit childcare element amount by age of youngest child, August 2024

Figure 5: Mean Universal Credit childcare element amount by age of youngest child, August 2024

The average amount of childcare element varied with the age of the youngest child in the household. In August 2024, the average amount was highest for households with older children, who were 11 or older. The average amount was also higher for children aged 3 or younger.

Figure 6: Mean Universal Credit childcare element amount by region, August 2024

Figure 6: Mean Universal Credit childcare element amount by region, August 2024

The average amount of childcare element was lowest for households in the South West England (£290) and highest for households in London (£660). This amount has increased by 12% since August 2023 in London, compared to an increase of 5% in Great Britain as a whole, which is again likely to be due to the rise in the maximum amounts in April 2024 and childcare costs increasing.

There is even more variation at a lower geographical level. For example, the average amount in the parliamentary constituency of Birmingham Ladywood is over twice as much (£810) than the West Midlands as a whole (£400) and the average amount in Gateshead Central and Whickham (£760) is nearly twice as much as the North East (£390). The average amount was lower in North Norfolk (£200) compared to the East of England as a whole (£360, see table 13 in the supplementary data for the parliamentary constituency data and table 6 for the regional data).

5. Households receiving maximum childcare element amounts

Figure 7: Universal Credit households receiving the maximum amount of childcare element as a proportion of households receiving childcare element, by month, August 2022 to August 2024

Figure 7: Universal Credit households receiving the maximum amount of childcare element as a proportion of households receiving childcare element, by month, August 2022 to August 2024

In August 2024, 3% of households receiving the childcare element received the maximum amount. In London, 9% of households receiving the childcare element received the maximum amount (see table 12, supplementary data).

6. Usage of the childcare element

We can compare the number of households receiving the childcare element to an estimate of the number who might be able to claim it. This estimate is the number of Universal Credit households with children aged 16 or younger in which all claimants are earning.

Figure 8: Universal Credit households receiving childcare element as a proportion of households where everyone is earning with a child aged up to and including 16, August 2022 to August 2024

Figure 8: Universal Credit households receiving childcare element as a proportion of households where everyone is earning with a child aged up to and including 16, August 2022 to August 2024

In August 2024, 13% of UC households with children and in which all claimants were earning received the childcare element. This proportion has remained broadly consistent for around 2 years.

This figure has fallen in line with similar falls in previous years, which is likely to be because households use childcare less during holiday periods. In June, July and August and again in November and December, in both 2022 and 2023, the % of UC households with children and in which all claimants were earning receiving the childcare element also fell slightly.

This figure was similar for single households and couples (13% and 11% respectively) and is broadly similar across all regions of the UK (see table 11, supplementary data).

This percentage does not represent the proportion of UC households that use childcare, since it is likely that some households make use of other forms of childcare that do not require the childcare element. These include the wider government offer of free childcare for pre-school children and friends and family helping with childcare.

Figure 9: Universal Credit households receiving childcare element as a proportion of households where everyone is earning with a child aged up to and including 16, banded by age of youngest child, August 2024

Figure 9: Universal Credit households receiving childcare element as a proportion of households where everyone is earning with a child aged up to and including 16, banded by age of youngest child, August 2024

In UC households with children of pre-school age (aged 4 or younger), 28% of households with everyone earning received the childcare element. For households whose youngest child was of primary school age (5 to 11), the proportion was lower (9%). For households whose youngest child was of secondary school age (12+), the proportion was lower still (less than 1%).

Figure 10: Universal Credit households receiving childcare element as a proportion of households where everyone is earning with a child aged up to and including 16, by age of youngest child, August 2024

Figure 10: Universal Credit households receiving childcare element as a proportion of households where everyone is earning with a child aged up to and including 16, by age of youngest child, August 2024

The proportion receiving the childcare element was highest for households whose youngest child was 2 years old. For households with older children, the proportion was progressively lower as the age of the youngest child increased.

7. About these statistics

These statistics have been classed as official statistics in development.

All figures in this publication are derived from Universal Credit administrative data.

Figures are provisional and may be subject to minor change. This is partly because a household may claim childcare for previous months. This means that a household could still claim childcare for any of the months listed in this publication, so that the number of recipients for any given month may increase slightly when revised in subsequent releases. For the same reason, the figures listed in this publication have changed slightly (and usually increased) compared to those in previous publications.

All figures are for Great Britain only and include only households where Universal Credit was in payment.

Figures are rounded according to the following convention: numbers between 0 to 1,000 are rounded to the nearest 10, numbers between 1,001 to 10,000 are rounded to the nearest 100, numbers between 10,001 to 100,000 are rounded to the nearest 1,000 and numbers between 100,001 to 1,000,000 are rounded to the nearest 10,000. In the case of broad ranges, a single convention may be used. Percentages are rounded to the nearest 1% where appropriate. For this reason, totals may not add up exactly.

Childcare element is paid for childcare for children aged up to and including 16. It is theoretically possible for the childcare element to be received for a 17-year-old: this happens when the child turns 17 in the last assessment period for which they are eligible. We expect this number of cases to be very small and we have excluded any such cases from our data.

For each month, the number of households receiving the childcare element is defined as the number of households who received some amount of childcare element for an assessment period that started in that month. An assessment period is one calendar month in duration starting from the date of which a UC claim is made. By counting households this way, rather than counting when a household is paid, the statistics more closely reflect when childcare is used.

When the maximum amount of childcare element increased in June 2023 and April 2024, it increased for assessment periods starting in June 2023 and April 2024 respectively.

When information is given for regions of Great Britain, this is derived from the claimants’ residential address. Not all claimants have a valid address listed, which means that a small number of households have “Unknown” region information.

For the full data, see: Supplementary data tables

8. Further information and feedback

Lead Statistician: Graham Walmsley

Analyst: Thane Than

Email: ucad.briefinganalysis@dwp.gov.uk