Unlike the current benefits system, low-income families on Universal Credit will not be able to claim money in advance for childcare bills, forcing them to pay the deposit, which in some cases could be £1,000, before waiting a month to be reimbursed, according to new analysis by Save the Children.
The charity warns that this will force families into childcare debt or block them from going back to work unless the Government makes urgent changes.
It refers to Department for Work and Pensions research showing half of low-income families have no savings. Save the Children says these families will be ‘forced hundreds of pounds into the red’ just to afford the childcare they need to start work.
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