Good news is on the way for working families claiming Universal Credit. From June 2025, the UK government is boosting childcare support to help tackle the rising cost of living and ease the pressure on parents juggling work and family life.
This isn’t just a small tweak — it’s a meaningful increase designed to make childcare more affordable and work more rewarding for thousands of households.
Overview
Let’s start with a simple breakdown of the new childcare support rates and details.
| Topic | Details |
|---|---|
| Effective Date | June 2025 |
| New Monthly Cap (1 Child) | £1,031.88 |
| New Monthly Cap (2+ Children) | £1,768.94 |
| Eligibility | Universal Credit recipients using registered childcare |
| Key Requirement | Proof of childcare costs (receipts, invoices) |
| Support Type | Paid through Universal Credit |
| Official Website | gov.uk/universal-credit |
What’s Changing
From June 2025, the amount Universal Credit claimants can get back for childcare costs is going up. The government has increased the caps to better reflect the actual costs parents are paying for childcare across the country.
| Family Size | Previous Cap (£) | New Cap from June 2025 (£) |
|---|---|---|
| One Child | £950.92 | £1,031.88 |
| Two or More Children | £1,630.15 | £1,768.94 |
That’s an extra £817.92 a year for one child and £1,665.48 a year for families with two or more children.
Why It Matters
This isn’t just about covering bills. It’s a step towards giving parents more freedom to work or take up new job opportunities without worrying about unmanageable childcare costs. It means:
- Encouraging more parents to take on work or extra hours
- Supporting families by making childcare more affordable
- Reducing financial strain and helping lift households out of poverty
- Allowing parents to consider promotions, career moves, or training
It’s a small policy change with potentially big effects for family life and job prospects.
Who Can Claim
To access this extra support, you’ll need to meet a few conditions:
- You must be receiving Universal Credit
- You need to use a registered childcare provider
- You have to provide receipts, invoices, or proof of payment for your childcare costs
- You should report any changes to your income, job, or childcare situation immediately via your Universal Credit journal
If your childcare provider isn’t registered, unfortunately, you won’t be able to claim these payments.
What You’ll Need
Getting your documents sorted early will save you stress. Here’s what to prepare:
- Your childcare provider’s name and official registration details
- Receipts or invoices for the childcare costs you’re claiming
- Proof of payments made (like a bank statement or digital receipt)
- Any updated income details if your work hours or earnings change
Upload these through your Universal Credit journal for fast processing.
Wider 2025 Updates
The increase to childcare support is part of a broader package of support measures arriving in 2025. These include:
- A 4.1% rise in the State Pension
- A 1.7% increase in the Universal Credit standard allowance
- Continued funding of the Household Support Fund for food, heating, and essentials
Together, these changes aim to ease some of the economic strain felt by households across the UK.
Household Support Fund
If you’re still struggling, don’t forget the Household Support Fund remains open through June 2025. This can help cover emergency expenses like groceries, heating, and essential household items. Support levels vary by council, so it’s worth checking with your local authority for details.
Getting Ready
To make sure you get the increased support without delay:
- Confirm your childcare provider is registered
- Keep receipts and payment proof organised
- Check your Universal Credit journal regularly
- Report any income or childcare changes promptly
Planning ahead will help you make the most of what’s on offer.
FAQs
When do the new childcare caps start?
From June 2025 for Universal Credit claimants.
How much is the new cap for one child?
£1,031.88 per month from June 2025.
Do I need to use a registered childcare provider?
Yes, only registered providers qualify for support.
What documents are needed for claims?
Receipts, invoices, provider details, and payment proof.
Can I claim if I’m self-employed?
Yes, if you meet Universal Credit’s income floor rules.
