High Court finds Universal Credit childcare rules to be unlawful

1 min read

Friday 22 January 2021

In a decision published today, Friday 23rd January, the High Court has found that the Universal Credit rules requiring a working parent to pay for childcare upfront before they can get help with those costs are unlawful.

Instead, the Court accepted that working parents should be able to get help with childcare costs from Universal Credit so long as they can show that they are liable for the childcare costs, rather than needing to prove they have already paid for the childcare.

The existing rules lead to many parents going into debt as a result of having to borrow money to pay their childcare costs upfront. It is hoped that the government will accept the High Court’s decision and act quickly to change the Universal Credit childcare rules.

For more information see this new story on the website of Leigh Day, the solicitors involved in bringing this case.