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The Children’s Society briefing on loss of Housing Benefit childcare disregard under Universal Credit
Hi,
The Children’s Society will shortly be producing a briefing on the loss of the HB (and potentially CTB) disregard of childcare costs under Universal Credit. The report shows how some of the lowest income working families could lose help covering as much as 26% of their childcare costs as a result of the change.
We are currently looking for families willing to speak to the media (including anonymously), that may be affected by this, and were wondering if anyone knows of anyone who might fit? broadly, these would be working families who are (1) paying a substantial level of childcare costs and (2) receiving HB/CTB.
If you think you know someone who might be suitable do get in touch at .(JavaScript must be enabled to view this email address)
I will post the report up when we publish it.
All the best
Sam
Our briefing on the loss of the Housing Benefit childcare disregard is now available at:
Also includes a map indicating which regions are likely to be most affected, and a calculator to indicate the maximum impact of the change on a family at a given level of childcare costs.
Key findings are also given below.
All the best,
Sam
• Currently tax credits cover up to 70% of childcare costs for children in working families. However, many low-income working families can get up to 96% of their childcare costs covered through the benefits and tax credits system. The additional 26% is provided through Housing Benefit and Council Tax Benefit.
• Around 100,000 families (20% of those who receive help with childcare through the benefits and tax credits system) receive this additional support.
• Under Universal Credit, this additional support will be lost. All those entitled will receive 70% of their childcare costs.
• This will leave some of the lowest income working families having to pay up to seven and a half times as much towards their childcare costs from their own pocket than they do under the current system.
• Families could face a cut of up to £2,320 per year from their childcare support if they have one child or £3,980 per year if they have two or more children as a result of this change.
• The average loss of support is estimated to be around £23 per week or £1,200 per year.
• Working families living in poverty are four times more likely to be affected by this change than families not in poverty who are receiving help with childcare costs through the tax credit system.
• Low-income working families in areas where housing costs are high, such as in the South of England (London, South East, South West), are disproportionately likely to be affected by this change.