How much childcare can I claim on Universal Credit?

Up to 85% of your childcare costs, up to £1,071.09 a month for one child or £1,836.16 a month for two or more children.

Do I have to pay the nursery first?

Usually yes. You pay, report the cost with proof in your Universal Credit account, and the money is added to your payment. Help with up-front costs may be available when you start work.

Can I use funded hours as well?

Yes. Funded hours are separate. Universal Credit can help with the hours you pay for on top.

Universal Credit childcare costs

If you claim Universal Credit and work, you can get help with up to 85% of your childcare costs, including nursery fees. It is paid as part of your Universal Credit, not as a separate benefit.

How much you can get

Up to 85% of what you pay for registered childcare.
Up to £1,071.09 a month for one child.
Up to £1,836.16 a month for two or more children.

These are maximums for each monthly assessment period. How much you actually receive also depends on the rest of your Universal Credit award, because Universal Credit reduces as your earnings rise.

Example: if your nursery bill is £800 for the month, 85% is £680, which is under the one-child limit, so up to £680 can be added to your Universal Credit for that period, subject to the rest of your award.

Who can claim

You (and your partner, if you have one) need to be:

in paid work, or
starting a job within the next month.

You may still qualify if you are on sick leave or parental leave. If one of you works and the other cannot, you can claim if the other partner has limited capability for work, is eligible for Carer’s Allowance, or is temporarily away from home, for example in hospital.

Gov.uk asks only that you are in paid work; it sets no number of hours.

What childcare counts

The childcare must usually be registered: a nursery, pre-school, childminder, after-school or holiday club registered with Ofsted, or with the equivalent body in Scotland or Wales. You can claim for children until 31 August after their 16th birthday.

How to claim

Pay your nursery.
Report the cost in your Universal Credit online account, with proof: a paid invoice, or a combination of bank statements and receipts, and the provider’s details.
The money is added to your next payment.

Report costs as soon as you can. You can claim for childcare paid in the current or previous assessment period, and for up to 3 assessment periods ahead if you paid in advance. You may also be able to get help with up-front costs, such as a deposit or the first month’s fees, when you start work; ask your work coach.

Universal Credit or Tax-Free Childcare?

You cannot get both at the same time. Tax-Free Childcare pays 20% of your bill, up to £500 every 3 months per child, and has its own minimum-earnings rule. Universal Credit pays back more of each pound (up to 85%), but within its own limits and depending on your earnings and other circumstances.

Many lower-income families get more through Universal Credit, but not all. Check with a benefits calculator before switching, and if you apply for Tax-Free Childcare, wait for its decision before ending your Universal Credit claim.

Funded hours as well

Universal Credit childcare is separate from funded hours, and you can use both:

If your household take-home pay is £15,400 a year or less (not counting benefits), your 2-year-old may get 15 funded hours.
If you meet the working-parent income rules, you may get 30 funded hours from 9 months.
Every 3 and 4-year-old gets 15 hours.

Our funded hours checker shows which apply to you, and the childcare cost calculator shows what is left to pay after funded hours.