Part of Oral Answers to Questions — Communities – in the Northern Ireland Assembly at 2:15 pm on 30 November 2021.
Many people do not have the resources to pay the upfront childcare costs that most childcare providers require. For women, lone parents and those from disadvantaged backgrounds especially, that can act as a barrier to employment. Since 25 October, I have made help available through a non-repayable grant from the adviser discretion fund of up to £1,500 for those for whom upfront childcare costs act as a barrier to employment. The grant will be paid by my Department directly to the registered childcare provider.
With the agreement of Executive colleagues, earlier this year the Universal Credit Regulations 2016 were amended to ensure that my Department's payment of upfront childcare costs through a non-repayable adviser discretion fund grant can be treated as having been made by the person whom it is intended to support. That will ensure that the recipient can receive a childcare element in their universal credit, enabling them to pay ongoing upfront childcare costs. The payment of the universal credit childcare element following the payment of any grant will ensure that recipients have sufficient resources to pay for the second and subsequent months of childcare in advance and then claim it in arrears from universal credit.
I am delighted that, within a few weeks of the scheme being announced, we have helped 50 parents with average upfront childcare costs of £600 a month. Support for upfront childcare costs will help parents to enter employment, which will reduce benefit dependency, support progression out of poverty and, ultimately, support economic recovery.