Starting in June 2025, parents receiving Universal Credit will benefit from increased childcare support. With the cost of living continuing to squeeze household budgets, this change aims to provide much-needed relief.
But it’s not just about easing expenses—it’s also about helping parents get back into work or increase their hours without worrying about childcare costs.
Here’s a look at what’s changing, who’s eligible, and how to prepare.
Summary
The government is raising the monthly childcare support caps under Universal Credit starting June 2025. Eligible families will be able to claim higher amounts to cover childcare costs.
| Topic | Details |
|---|---|
| Effective Date | June 2025 |
| New Monthly Cap (1 Child) | £1,031.88 |
| New Monthly Cap (2+ Kids) | £1,768.94 |
| Eligibility | Universal Credit recipients using registered childcare |
| Proof Needed | Receipts or invoices from approved providers |
| Support Type | Paid through Universal Credit |
| Website | www.gov.uk/universal-credit |
Increases
The updated caps better reflect the real cost of childcare today.
| Family Size | Previous Cap (£) | New Cap (£) |
|---|---|---|
| One Child | £950.92 | £1,031.88 |
| Two or More | £1,630.15 | £1,768.94 |
That’s a yearly difference of £817.92 for one child and £1,665.48 for two or more children—enough to cover at least one full month of care for many families.
Benefits
This change is about more than just money. It’s about opening doors for parents who want to stay in work or return to it.
- Helps cover childcare so parents can work more confidently
- Contributes to reducing child poverty through increased household income
- Supports career growth with more flexibility for full-time roles or training
- Ensures children access regular, quality childcare
Criteria
To qualify for the increased support, you must:
- Be receiving Universal Credit
- Use a registered childcare provider (such as OFSTED-registered in England)
- Provide valid proof of childcare payments
- Keep your Universal Credit details up to date, including changes in income or childcare
Payments won’t be issued for unregistered providers, so it’s important to confirm their status early on.
Documents
To prevent any delays, upload the following through your Universal Credit journal:
- Name and registration number of your childcare provider
- Invoices or receipts showing childcare costs
- Proof of payment (like a bank statement)
- Updated details if your income or work hours have changed recently
Having everything ready will help your support arrive faster.
Context
This update is part of a broader plan to support low- and middle-income families in 2025. Other updates include:
- A 4.1% increase to the State Pension
- A 1.7% rise in the Universal Credit standard rate
- Ongoing Household Support Fund payments through June 2025
These steps are designed to ease the pressure of rising costs, especially for vulnerable households.
Extra Help
If you’re still struggling, the Household Support Fund could offer further assistance. Depending on your local council, support might include:
- Food vouchers
- Help with gas and electricity bills
- Essentials like bedding or household appliances
The support available varies by area, so check with your council directly.
Preparation
Although the changes begin in June 2025, it’s smart to get ready now:
- Confirm your childcare provider is registered
- Keep track of your payment records and receipts
- Set reminders to review your Universal Credit journal
- Report any life changes that could impact your claim
Getting organised early can help you access the increased support with fewer delays.
Limits
While the boost is significant, it won’t cover all childcare costs. Here’s what to keep in mind:
- Anything above the cap must be paid out of pocket
- Self-employed parents must meet minimum income thresholds
- Care from unregistered providers won’t be reimbursed
Planning ahead and managing expenses remains important, even with this additional help.
For full guidance and updates, visit:
www.gov.uk/universal-credit
FAQs
What is the new childcare cap?
£1,031.88 for one child, £1,768.94 for two or more.
When does this increase start?
June 2025.
Who is eligible for the increase?
Universal Credit claimants using registered childcare.
Do I need to apply separately?
No, just upload your childcare costs via your journal.
What if my provider isn’t registered?
You won’t be eligible for reimbursement.
