Universal Credit UK: DWP childcare rules deemed ‘unlawful’ after High Court decision today | Personal Finance | Finance

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The ruling, only if the Department for Work and Pensions (DWP) agrees to change the rules surrounding childcare costs, could affect thousands of parents who need this kind of support. 

Ms Salvato commented after the case saying: “I’m over the moon with the ruling, I always felt that the rule was unfair and discriminatory, it seemed ridiculous that the most hard up families getting help for childcare costs through Universal Credit had to find the money for childcare costs upfront, sometimes thousands of pounds per month, while better off families earning up to £200k per year got help for their childcare costs in advance through the tax free system.

“It is such a clear barrier into work, when the whole point of welfare reform and Universal Credit was that it would act as an incentive to work enabling and supporting lower income families to work or work more and realise their employment ambitions and all the benefits that brings to a family. 

“I’m so very pleased that the judge has ruled that the way that childcare costs are administered through Universal Credit at the moment is unlawful and I really hope that the DWP recognise that a speedy change to the system is going to have an enormous and very welcome impact on the lives of hundreds of thousands of lower income families across the country, the very group of people that the Government says it wants to help.”

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