Universal Credit claimants are being alerted to childcare support that could be worth up £1,739 a month.

Parents on Universal Credit with one child under 17 are now able to claim up to £1,015 a month for childcare costs, up from £950 previously.

While those with two or more children can claim support worth up to £1,739 to help pay for childcare costs.

The Department for Work and Pensions (DWP) says the support will cover up to 85 per cent of childcare costs for parents on Universal Credit.

Work and Pensions Secretary Mel Stride said: “This big boost to childcare support will help even more parents step into the world of work and secure long-term financial security.

“We are delivering on our plan to get people into jobs, as we cut taxes, drive down inflation, and put money back into the pockets of hardworking families.”

Child Benefit payment increases

HMRC has confirmed that families with one child will now receive £1,331 per year, an increase of more than £83.

Families will also receive £881 per year for each additional child they have after that, an annual increase of £54.60.

There is no limit to how many children families can claim Child Benefits for.

Parents will receive £102.40 every 4 weeks (£25.60 per week) for the first or only child and £67.80 every 4 weeks (£16.95 per week) for each additional child.

Families with ongoing claims do not need to contact HMRC, as the increased benefit payment will continue to be paid directly into their bank accounts. Anyone who needs to update their personal details, such as a change of bank account or address, can do so using the HMRC app or online at GOV.UK.

HMRC is encouraging any new parents to make a claim as soon as possible, with their first payment capable of being made in as little as three days.

Parents of newborns can also backdate their Child Benefit claims by up to three months.

Jeremy Hunt makes changes to 'unfairness' of Child Benefit rules

From this month, families where the highest earner has a salary of up to £60,000 a year will not be subject to the High Income Child Benefit Charge (HICBC). Previously, a person who had an annual income of £50,000 or more would be liable to pay the charge if they or their partner were receiving Child Benefit.

Announcing the change in last month’s Budget, Chancellor Jeremy Hunt said: “That means two parents earning £49,000 a year receive the benefit in full but a household earning a lot less than that does not if just one parent earns over £50,000.

“Today I set out plans to end that unfairness. Doing so requires significant reform to the tax system including allowing HMRC to collect household level information.

“We will therefore consult on moving the high-income child benefit charge to a household-based system to be introduced by April 2026.

“But because that is not a quick fix, I make two changes today to make the current system fairer.”

Laura Trott, Chief Secretary to the Treasury, added: “We are ending the unfairness in the child benefit system, and as a result 170,000 families will no longer have to pay back child benefit, and nearly half a million families will save an average of around £1,300 next year.

“The legacy of the pandemic and the war in Ukraine has put pressures on everyone’s cost of living. But, by taking difficult decisions, the economy is starting to turn a corner, and we can now provide further support to parents.”