Universal Credit childcare costs | Eligibility and how much can you get

What is Universal Credit? 

Universal Credit is a payment to help with your living costs.

• Universal Credit replaces working tax credit and child tax credit. 
• If you receive either of these two benefits, you cannot claim for Universal Credit at the same time.
• Families on Universal Credit can receive funding for childcare costs upfront, instead of having to claim it back.

How much does Universal Credit pay for childcare costs?

If you are eligible for Universal Credit, you can claim up to 85% of your childcare costs.

How much childcare support people on Universal Credit can claim is £1,014.63 per month for one child and £1,739.37 per month for two or more children

Who is eligible for Universal Credit childcare costs?  

To be eligible for the childcare cost element of Universal Credit, you must be in paid work or have an offer to start working before your next Universal Credit assessment period.

Working families with children under 17 can claim Universal Credit in England, Wales, Scotland and Northern Ireland. To be eligible:

• you must live in the UK, be low on income or out of work, be aged 18 or over, under state pension age and have less than £16,000 in savings and investments between you and your partner. 

• If you live with a partner, you both need to be in paid work, unless your partner cannot look after your children.
• If you’re on sick leave, you may also be eligible if you’re getting Statutory Sick Pay
• If you’re on maternity, paternity or adoption leave, you may also be eligible if you’re getting one of:
• Statutory Maternity Pay
• Statutory Paternity Pay
• Statutory Shared Parental Pay
• Statutory Adoption Pay
• Maternity Allowance

You can claim childcare costs for all the children you’re responsible for, until the 31 August after their 16th birthday.

How much childcare costs can you claim on Universal Credit?  

In 2025/26, Universal Credit will be increased by 1.7%, in line with the increase in CPI in the year to September 2024. As announced in the Budget, the overall cap for Universal Credit deductions will be reduced to 15% from April 2025.

In 2024/25, working parents on Universal Credit can claim childcare support up to:

• £1,014.63 per month for one child
• £1,739.37 per month for two or more children

Universal Credit supports families with childcare costs 

You can claim back up to 85% of your childcare costs if you’re working. If you live with your partner both of you need to be working, unless one of you is unable to work due to a disability or health condition.

• To be eligible for the childcare cost element, you must be in paid work or have an offer to start working before your next Universal Credit assessment period.
• For couples, both must work to qualify unless they are unable to care for their child due to limited work capabilities or they are caring for a child with severe disabilities.
• The childcare needs to be from a registered provider.
• Your childcare must be with ‘registered’ childcare providers. Usually that means they registered with OFSTED, the Care Inspectorate in Scotland or the Care Inspectorate Wales.
• You can get help paying for childcare including nurseries, childminders, nannies, breakfast clubs, after school care and holiday clubs.

‘Reasonable childcare costs’

Universal Credit will cover ‘reasonable’ childcare costs that help you work or get into work. That could include:

• a ‘settling-in period’ before you start work, so your child can get used to being in childcare
• childcare while you travel to work
• childcare in the month after you lose a job

Childcare for changing work patterns or zero-hours contracts can also be considered ‘reasonable’.

For example, if you have to pay childcare costs so that you are available to work your usual hours, and then you actually get less work hours than you expected, that’s considered ‘reasonable’.

You normally need to pay for the childcare first. If you cannot pay that upfront cost, you might be able to get help with that.

You’ll get an extra amount for your first and second child and you will not get an extra amount for any more children unless:

• your children were born before 6 April 2017
• you were already claiming for 3 or more children before 6 April 2017

How much you’ll get	Extra monthly amount
For your first child	£333.33 (born before 6 April 2017) £287.92 (born on or after 6 April 2017)
For your second child and any other eligible children	£287.92 per child

You’ll also get an extra amount if any of your children are disabled. You’re eligible for this extra amount no matter how many children you have. You’ll get:

• £156.11 if your child is disabled
• £487.58 if your child is severely disabled

Help with upfront costs of childcare

You may be able to get help from the Flexible Support Fund if you have to pay upfront childcare costs and one of the following applies:

• you’re starting work
• you’re increasing the hours you work, for example you’ve moved from part-time work to full-time work

Use your online account or contact your work coach to ask about help from the Flexible Support Fund.

How do you apply for Universal Credit? 

You can apply for Universal Credit online. 

To apply online you’ll need:

• your bank, building society or credit union account details
• an email address
• access to a phone

You must include details of how much you pay for childcare. Universal Credit is paid once a month, usually into your bank or building society. It is paid twice a month for some people in Scotland.  

Work out if you’re better off on Universal Credit before you apply for it.

If you already get benefits or tax credits, find out if you’ll be better off before you or your partner claim Universal Credit. If you apply for Universal Credit those benefits might end and you will not be able to apply for them again.

If you need help with your application, you can receive free support from trained advisers at Citizens Advice to make a Universal Credit claim.