The amount of childcare for which families on benefits can claim back will increase by hundreds of pounds from the end of June, under Government’s plans to tackle inactivity and help grow the economy.

The Department for Work and Pensions (DWP) is set to raise the amount on June 28, meaning parents eligible for help through Universal Credit will be able to claim back up to £951 for one child and £1,630 for two or more children.

This is a rise of 47% from the previous limits of £646 for one child or £1,108 for two or more children.

The Government will also support eligible parents with their first month of childcare costs when they either enter work or increase their hours, by providing childcare funding upfront.

Those parents will receive up to 85% of their childcare costs back before their next month’s bills are due.

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