Childminders claiming Universal Credit (UC) who receive funding from their local authority termly or in two lump sums, rather than monthly, are being stripped of the benefit, leaving them short of money and strugg
Childminding UK’s Sustainability report 2023/24, highlights how receiving funding in lump sums can affect Universal Credit payments by increasing the amount a childminder appears to earn during a reporting window to above the maximum income threshold. In some cases, this means they miss out on the benefit the months they receive funding or until their funding runs out.
One childminder explained, ‘I am extremely worried. I am a single parent minder with two assistants. I have just moved from Tax Credits to Universal Credit. Our funding is paid in two lump sums per term, rather than monthly. Funded months will wipe out my UC completely, even though the funding covers just two-three months of expenditure.’
Another said, ‘With Birmingham City Council only paying termly for funding, I financially cannot afford to offer more than one space as the bulk payment effects my UC payments, leaving me short in money to pay essential bills.’
