Citizens Advice welcomes "positive step" in helping families deal with burden of childcare costs

Citizens Advice has welcomed the Government's decision to act on its recommendations to increase support for childcare costs for parents receiving Universal Credit.

Gillian Guy said that ministers' decision to pay all parents receiving Universal Credit 85 per cent of their childcare costs would help families to make ends meet.  

Confirmation of the extra support came as part of an announcement that from 2015, families will be able to claim up to £2,000 Tax Free Childcare support.

Citizens Advice Chief Executive, Gillian Guy, said:

"Today's announcement is a positive first step in helping families make ends meet. With childcare costs going up 77 per cent in a decade, raising a child whilst trying to hold down a low-paid job is a daunting challenge which can quickly become impossible. Under Universal Credit many families were set to face an even tougher struggle by losing out on around 20 per cent of the help they received to pay for childcare. Citizens Advice has campaigned for ministers to ease the pressure on working families and I'm pleased they have listened to our concerns.

"Paying for childcare can place an unbearable burden on parents. It's good news that ministers have acted on recommendations from Citizens Advice and increased childcare support for families getting Universal Credit. Implementing our call for all parents on the new single benefit to get support with 85 per cent of their childcare costs will ease financial pressure, help to simplify life for parents on low incomes and start to make sure more families gain from every hour they work.

"Although today's news is welcome, there is still much more Government could do. Rather than giving additional help to high-earners, ministers should focus their efforts on helping those on the lowest incomes. Giving parents on low wages 95 per cent of their childcare costs and making sure all children in households receiving Universal Credit get a Free School Meal would be a much better and more targeted use of money."

Notes to editors:

1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.