Universal Credit childcare costs: up to 85% back, limits set from 6 April 2026

Parents who pay for childcare so they can work may be able to get some of those costs back through Universal Credit. The rules are set out in guidance from the Department for Work and Pensions (DWP) on GOV.UK. The latest significant change to it is the new maximum amounts, which apply from 6 April 2026.

How much you can get

Universal Credit pays back up to 85% of childcare costs. The maximum for each assessment period is:

• £1,071.09 for one child,
• £1,836.16 for two or more children.

How the refund works

You first pay for childcare yourself, then report the cost to Universal Credit. The money is paid back only after the childcare has actually taken place. The refund is included in your total Universal Credit payment, which can go up or down depending on your earnings in each period.

DWP advises arranging monthly payments with your provider and reporting them as soon as they are paid. If you have paid in advance, you can report costs for up to three assessment periods ahead, as long as you have proof of payment. The money is then paid back gradually, for each period separately, not as a lump sum.

You must report a cost in the assessment period in which you paid it, or in the following one. If you report it later, you might not get the money back.

Who is eligible

You need to be in paid work or starting a job within a month. There is no minimum number of hours. Volunteering where you only receive expenses does not count. If you live with a partner, you both need to work, unless one of you cannot look after the children, for example because of a health condition or disability, caring for a severely disabled person, or a temporary absence from home.

People on sick leave or on maternity, paternity, adoption or neonatal care leave may also be eligible if they receive certain payments, such as Statutory Sick Pay, Statutory Maternity Pay or Maternity Allowance. You can claim for all the children you are responsible for until 31 August after their 16th birthday.

Which providers and costs are covered

The provider must be registered, usually with Ofsted, or with the Care Inspectorate in Scotland or Wales. This includes nurseries, preschools, childminders, nannies, and after-school, breakfast and holiday clubs. Universal Credit covers "reasonable" costs, for example a settling-in period before you start work.

Help with upfront costs

If you are starting a new job, you may be able to get all your childcare costs paid for the first month. If you are increasing your hours, you may get your additional childcare costs paid for one month. Help may also cover a deposit or retainer for a provider. You do not have to pay this money back. You can apply through the journal in your Universal Credit account or through a work coach at your jobcentre.

What this means for you

The rules apply to everyone who works and claims Universal Credit, if they meet the conditions. You will need documents: a contract, invoice or letter from the provider showing its name, registration number and address and your children's names, plus proof of payment. People on Universal Credit cannot use Tax-Free Childcare. The guidance covers England, Scotland and Wales. Northern Ireland has separate guidance on NI Direct.