
Money expert Martin Lewis has let his ITV viewers know about a Universal Credit boost worth an extra £1,769 per month.
The Money Saving Expert founder returned on ITV1 on Tuesday night with a Summer Special one-off episode of his long-running financial advice programme. There, Martin spread the word about Child Benefit and the badly named Tax-Free Childcare, as well as a better alternative for those who claim the DWP's
Tax-Free Childcare is effectively a top-up towards childcare fees paid by the government to working parents making payments to a nursery or other Ofsted registered childcare. said that both parents need to be working for at least 16 hours of National Minimum Wage, but if either parent earns over £100,000, both parents will be ineligible.
For each 80p you put in, the state adds 20p on top, so a 25% boost on what you pay in, up to a maximum boost of £2,000 on an £8,000 contribution.
said: "That's £2,000 free per year, check it out if you're paying for childcare. Even if it's only childcare for the summer holidays, you're sending your kids to a holiday club with the school that's Ofsted registered, you can utilise this."
But there's an even better scheme currently available for parents who are claiming Universal Credit, Martin said.
He added: "And the same is true if you're on Universal Credit and working. You can only choose one of these, if you're working, this wins, don't do that one, this wins.
"Then you can claim some of the cost for under-17s here, up to 85% of the cost, but up to a maximum amount just over £1,000 if you've got one child, nearly £1,800 if you've got two children.
"You do this via your Universal Credit account, you do it online, but sadly it is paid for in arrears. Again, it's the same rules about working, you have to be working or both of you working if you're in a couple."
Paid in arrears means that you have to pay for the childcare costs yourself, and then the government gives the money back to you, up to 85% of the costs or a maximum of £1,768 for two or more children.
The government website says about the scheme: "You may be able to claim back up to 85% of your childcare costs if you're eligible for Universal Credit. You (and your partner if you live with them) will usually need to either: be working - it does not matter how many hours you or your partner work; have a job offer.
"The most you can get back each month is, £1,031.88 for one child, £1,768.94 for 2 or more children."
The Martin Lewis Money Show Live May 20 episode is still available to watch via ITVX.
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