Nursery World - Take an upfront approach to childcare costs

There is an obvious solution to help parents struggling with childcare costs under Universal Credit, argues Kevin Watkins of Save the Children UK.

With the government struggling to establish a parliamentary majority capable of unlocking the complexities behind our national Brexit conundrum, there’s another big problem with an obvious solution they could adopt tomorrow.

Right now, millions of the poorest parents in our country are struggling to meet childcare costs. Many of these parents are eligible for childcare support under Universal Credit. But here’s the catch. Parents have to pay first and then claim reimbursement. This is a huge burden for many struggling families, who don’t have the savings they need to cover the up-front costs.

This problem is compounded by the volatility of childcare costs. Unlike many other costs covered by Universal Credit – rent, utility bills or food, for example – childcare costs vary significantly throughout the year, with a spike during school holidays. Our research found that for the parents of a three- or four-year-old, the summer vacation comes with an average increase of £630 a month in childcare costs.

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