How to get up to 85% of your childcare costs paid back on Universal Credit

If you work and claim Universal Credit (UC), you may be able to get most of your childcare costs paid back. UC will cover up to 85% of what you spend on registered childcare each month.

Many working parents on UC do not claim this — often because they do not know it exists, or they think their earnings are too high. Your earnings level does not affect whether you can get it.

How much can you get back?

From April 2026, the most Universal Credit will pay toward childcare is:

• £1,071.09 a month if you have one child
• £1,836.16 a month if you have two or more children

So if you pay £900 a month for a nursery place for one child, UC will pay back £765 of that — you would only be out of pocket by £135.

Who is eligible?

You can claim the childcare element if:

• you are in paid work, or due to start a job within the next month
• you use a registered childcare provider

If you have a partner on the same UC claim, you usually both need to be working. But there are exceptions. Your partner does not have to work if they:

• have a health condition that gives them limited capability for work
• are a carer for a severely disabled person
• are temporarily away from home — for example, in hospital

What counts as registered childcare?

Your provider must be registered with Ofsted in England, the Care Inspectorate in Scotland, or the Care Inspectorate Wales. This covers:

• nurseries and preschools
• registered childminders
• breakfast clubs, after-school clubs, and holiday clubs

An informal arrangement with a neighbour or family member does not qualify, even if you pay them.

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How to report your costs

Log in to your UC online account and report your childcare costs through your journal. You can do this when you first claim UC or at any point during your claim.

Report as soon as you have paid. If you wait longer than two assessment periods — roughly two months — you risk losing that money. Have the following ready when you report:

• the dates your childcare covered
• how much you paid and when
• your provider's details — name, registration number, address, and phone number (a contract or invoice works well as proof)

Help with upfront costs

Some childcare providers ask for a month's fees before your child can start. If you cannot afford this upfront, speak to your work coach at Jobcentre Plus — in some cases DWP can pay your provider directly so you do not need to find the cash yourself.

You can also apply for a Budgeting Advance through your UC account to help bridge the gap while you wait for your first payment.