# Can Universal Credit help with childcare costs? | Clever Mum

> Yes — the Universal Credit childcare costs element reimburses up to 85% of registered childcare costs (higher than Tax-Free Childcare's effective 20%), up to a

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#  Can Universal Credit help with childcare costs? 

    
 
Quick answer — Can Universal Credit help with childcare costs? 

 
Yes — the Universal Credit childcare costs element reimburses up to 85% of registered childcare costs (higher than Tax-Free Childcare's effective 20%), up to a monthly cap that's higher for two or more children. It's paid in arrears, so you pay the provider first and claim back — a real cashflow challenge some claimants aren't warned about, though a discretionary "flexible support fund" can sometimes help with the upfront cost via your work coach.

   
## Why it's often the best-value option

For eligible Universal Credit claimants, the childcare element reimburses up to 85% of registered childcare costs — a significantly higher effective rate than Tax-Free Childcare's 20% top-up. You can't claim both at once, so if you're on Universal Credit, it's almost always worth comparing the two before assuming Tax-Free Childcare is the better-known, better option.

## The catch: it's paid in arrears

You have to pay your childcare provider first, then submit receipts to claim the cost back on your next Universal Credit payment — which can mean a real cashflow gap in the weeks before your first reimbursement lands, especially when starting a new nursery place. Ask your Jobcentre work coach about the "flexible support fund" or a budgeting advance if the upfront cost is a genuine barrier to starting or returning to work.

## What to check

Monthly caps apply (higher for two or more children than one) and are uprated periodically — check the current figures on gov.uk before budgeting around them, since values here go stale fastest of any figure on this site. The childcare must be with a registered or approved provider to qualify.

   
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