What the childcare element is
Universal Credit includes a childcare element. If you are working and paying a registered childcare provider, you can claim back up to 85% of those costs as part of your monthly Universal Credit payment.
Just Little Kidz is registered and Ofsted-inspected, so our fees qualify. This is separate from your government-funded hours, and you do not have to choose between them.
Two ways families use it
- Alongside funded hours. Funded hours cover a set number of hours a week during term time. Universal Credit can help with the rest — extra hours, meals and consumables, and the school holidays.
- On its own. If you do not qualify for funded hours, or your child is not old enough for them yet, the childcare element can still help with your fees.
The bit that catches families out
Universal Credit reimburses childcare you have already paid. It is not paid to the nursery, and it does not arrive before your invoice is due.
That means the first month or two you will be paying fees in full and waiting for the money to come back. It is worth planning for, because families who budget on 85% from day one can find themselves short at exactly the wrong moment.
Report your costs in your Universal Credit journal for each assessment period, and keep your receipts. There is a time limit on reporting, so do it as soon as you have paid. We will give you an invoice or receipt whenever you need one — just ask, and ask early rather than on the day it is due.
Are you eligible?
- You are claiming Universal Credit
- You are in paid work — any number of hours. If you have a partner, you usually both need to be working unless one of you cannot
- You are paying a registered childcare provider
Just starting a job? You may be able to claim for childcare paid before you start. Recently stopped work? You may still be able to claim for a short period afterwards. Both are worth asking about rather than assuming.
You cannot use this and Tax-Free Childcare
You cannot claim Universal Credit childcare costs and use Tax-Free Childcare at the same time. Opening a Tax-Free Childcare account will stop your Universal Credit childcare payments.
Which is better depends on your income and how much childcare you use. The government's free calculator at childcarechoices.gov.uk compares them side by side before you commit to either. If you are studying, a third option may apply — see our guide for student parents.
This guide is a summary, not advice. Universal Credit rules and the monthly maximum are set by the government and change from time to time. Always check the current position at gov.uk/universal-credit/childcare-costs.
Not sure which scheme is yours?
Our team can talk you through how funding works in practice at JLK and make sure you have the paperwork you need. We cannot advise on your claim, but we can make it easier to make.