Research and analysis

Universal Credit childcare costs support research

Published 7 October 2024

DWP ad hoc research report no. 100

A report of research carried out by Ipsos on behalf of the Department for Work and Pensions.

You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. View this licence or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email psi@nationalarchives.gov.uk.

If you would like to know more about DWP research, email socialresearch@dwp.gov.uk.

First published October 2024.

ISBN  978-1-78659-734-2

Views expressed in this report are not necessarily those of the Department for Work and Pensions or any other government department.

Acknowledgements

The research team wish to thank all the participants who gave their time to take part in this study and the DWP team for support throughout the project.

Authors

This report was written by researchers at Ipsos UK Public Affairs:

Joanna Crossfield, Research Director and Head of Employment, Welfare and Skills research

Kelly Maguire, Research Manager

Rachael O’Donovan, Research Executive

Tanisha Colegate, Research Executive

Executive Summary

The aim of the research was to understand UC claimants’ childcare choices, the impact of different forms of government childcare support, and how this feeds into whether they feel able to work, look for work, stay in work, or to work more.

The research comprised a large-scale survey, and qualitative research with UC claimants with children aged up to 16.

Understanding the Survey Population

Claimants in the survey mostly had multiple children: 41% had one child, 59% had more than one child. Six in ten (60%) had children who were of school age only, 16% of pre-school age only, and 24% had a mix of both.

Around one in five (22%) respondents have a long-term disability or health condition that impacts their ability to work. A similar proportion (22%) have a child with SEN, a health condition or disability.

The survey was run with parents from three groups of interest^{[footnote 1]}:

• Group 1: Using UC Childcare costs support (6% of claimants in the survey)
• Group 2: Working and not using UC Childcare costs support (63%)
• Group 3: Not working and not using UC Childcare costs support (32%)

Parents’ use of childcare

Formal childcare

Use of formal childcare is highest for those with children of pre-school age and mixed ages (66% and 65% respectively, compared with 34% of those with school aged children only). No childcare (43%) or informal childcare (38%) is more common for those with only school age children (compared with 27% with pre-school aged only, and 30% with a mix).

Over half use formal childcare to enable them to work. The perceived quality of the setting and benefitting the child were other main reasons for using formal childcare. Those using formal childcare are most likely to be satisfied with their childcare arrangements. This was most commonly because they felt it benefits their children (76%) and they trust the people there (64%).

Two-thirds (66%) of parents using formal childcare were satisfied with their childcare – higher than for those using informal only (55%).

For early years, Ofsted registration is an important factor for determining quality. For older children, its importance is tied to accessing funding. Parents using formal childcare were most aware of Ofsted. Beyond Ofsted, a good environment and staff helped parents determine if a childcare provider was good quality.

Informal childcare

Benefits of spending time with family and friends (72%) and trust (66%) are the main reasons for satisfaction with informal childcare, along with affordability (59%). Qualitative findings suggest cost, convenience and trust are key reasons for using only informal childcare.

Those using informal childcare only were more commonly working 11-20 hours (33%) than those using formal childcare (27%). They were also more likely to be single claim (55% vs 49% using formal childcare). Those working evenings / weekends / irregular hours more likely to rely on a mix of formal and informal childcare.

Not using childcare

Many not using childcare at all are satisfied with this arrangement, mainly due to their attitude to work and to childcare. Two thirds (66%) say they prefer to look after their children themselves and over half (54%) like to know what their children are doing/that they are safe.

The main reason why parents do not use formal childcare is cost. It is also seen as less necessary for older children. Over four in ten (42%) said making formal childcare more affordable would encourage them to use it; 31% mentioned the quality and trust.

Parents of children with SEND face specific challenges to using childcare.

Work and childcare

When it comes to work, childcare is the biggest barrier parents face. Three in five (61%) find childcare makes it difficult to find work or increase their earnings; this rises to three in four parents with pre-school children.

Affordability is the biggest barrier to childcare. High costs prevent parents from working and prevent formal childcare being used.

Two-thirds (67%) would like to work more but feel childcare is too expensive to make it worthwhile.

Another barrier to childcare is flexibility; the majority of parents say they need flexibility from their employer and/or childcare that fits around work.

Attitudes to work are not a barrier for parents to get into work or increase their hours. Parents want to work to set a good example for their children and, to a lesser extent, for their own fulfilment.

Approaching half (48%) of those who are unemployed and have a disability or health condition that impacts their ability to work agreed they would be happier and more fulfilled if they were working.

Parents have to piece together work, childcare, personal circumstances, and their finances. All four feed into decisions, but the ‘main’ factor depends on personal choice and circumstance. This is hardest for parents with younger children. They need more care, which is more expensive, harder to fit around work, and parents want to spend time with them while they are young.

For those open to using childcare, the ideal arrangements are those that facilitate work and benefit the child. Parents who would like to use childcare need to be able to comfortably afford this.

UC Childcare Costs Support (UC Childcare)

Among claimants who are not using UC Childcare, almost half in Group 2 (working and not using UC Childcare) and a third in Group 3 (not working and not using UC Childcare) use formal childcare of some form. The 15 hours free childcare for 2-year-olds and 3 to 4-year-olds are the most commonly used forms of support.

People are more likely to be aware of childcare offers targeted at their child/ren’s age group. Awareness is highest of 15 and 30 hours free schemes, which are simplest for parents to administer. There is, however, a clear gap between those using formal childcare and awareness of UC Childcare, and only one third of parents find UC Childcare easy to understand.

Claimants heard about UC Childcare through word of mouth or their own internet searches. They find the basics easy to understand but lack understanding of how it applies to their own situation and how much money they will receive. This uncertainty is a key barrier to take-up.

Experiences of using childcare

Those using UC Childcare as as well as other government support found the other support easier to use.

Those claiming either UC only or free hours only were broadly satisfied with their care arrangements. UC Childcare can overcome barriers around limited hours offered by free funding, whereas free funding requires little to no intervention once set up, unlike UC Childcare. 

Non-use of UC Childcare

Non-use of any government childcare funding support was primarily due to lack of awareness or understanding of how it operates. There are also, however, a portion who do not require childcare due to their children being old enough to be on their own after school.

Impact of the support

Around 8 in 10 people report the UC offer has helped them move into work or work more.

However, those in work who feel it is not worth working more believe they will lose their UC and be worse off. They have to think about the impact of working more on their UC claim, as well as the cost of childcare.

Reasons for not using UC Childcare

Claimants who are aware of UC Childcare do not use it most commonly because they either do not need formal childcare or cannot pay upfront.

The reimbursement model is a barrier to using UC Childcare. Claimants with more than one child are more likely to say they cannot afford to pay upfront. Parents would find it difficult to find the extra money to pay fees upfront – and considered even more challenging amongst those who are on low income or not working.

The free hours models have their own challenges as they limit the amount of childcare parents can use and therefore the amount of hours they can work and therefore jobs they can access.

Changes that would impact use

One in four claimants would consider using UC Childcare if they knew more about it (26%), it was paid in advance (24%), or it was easy to claim (24%).

Of non-users, after having it explained to them in the survey, over half of those in group 2 and four in ten of group 3 who were previously unaware of UC Childcare would be interested in using the scheme.

Having to pay costs upfront is one of the main reasons why claimants who are open to using formal childcare do not use UC Childcare. The upfront payment is a risk some are not willing (or able) to take, and the design of the offer is not attractive enough to overcome the risk.

Confidence in efficacy of UC Childcare

Over half of customers in Groups 2 and 3 think that UC Childcare could help them move into work / work more hours. Qualitative findings suggest that claimants who are already in work are in a better position to see where UC Childcare could fit; those not currently in work feel like they need to find work before they can think about childcare.

Around a quarter (24%) of Group 3 are not interested in UC Childcare. Their reasons for not working do not relate to childcare. A proportion have children with additional challenges such as SEN, a health condition or a disability, and many have such challenges themselves.

User Experience of UC Childcare

Those using the offer (Group 1) are most likely to be satisfied with their childcare arrangements (79%, compared with 60% of Group 2 and 46% of Group 3). The qualitative research found that this group had a much stronger motivation to work and saw this as being beneficial for themselves and their child.

The qualitative research mapped the journey from the decision to use UC Childcare through the application process and experiences of using UC Childcare. It was an easy decision for parents to use the UC offer if they needed formal childcare. When parents knew about the UC Childcare offer and knew that they needed it to fund their formal childcare, the decision to use it was fairly straightforward. Claimants saw it as ‘free support’.

Most found applying easy, but on reflection feel they were not fully informed of how to use the scheme, for example, uploading receipts, how much they are entitled to, how this might vary each month or if they changed their hours, and how this relates to their specific circumstances.

There were reports of having to wait for the first payment (sometimes up to 12 weeks) meaning parents were having to take UC loans, borrow money or use their credit card.

However, many parents experienced challenges when using UC Childcare including not always knowing how much of their UC payment is for childcare and how much is for themselves as it is all in one. They found it hard to budget as a result.

The gap between having to pay the childcare provider and receiving the UC reimbursement also influenced parents’ experiences (depending on the day they need to pay the provider and when they get their UC payment). Those with a shorter gap found managing this easier. Others reported sometimes having to pay two months of nursery fees before receiving a reimbursement.

Improving the childcare offer for parents

On the whole, the requirement to use Ofsted registered childcare was not a large barrier to using childcare, for parents of pre-school children. However, relaxing it would enable parents to use UC Childcare to pay for different types of out of school activities. Being able to use non-registered childcare would enable parents to use UC Childcare to pay for extra-curricular activities such as music, dance and horse-riding.

Participants – both those using UC Childcare and not – expressed a strong preference for upfront payment. They felt this would remove the stress associated with having the money to pay for their childcare upfront.

Those in more expensive areas (e.g. London) felt a higher cap was needed to cover their childcare costs. Covering 100% of childcare costs would enable them to use more childcare and work more.

Flexible working is seen as essential to supporting parents to work, but it is not available to all. There is a belief that flexible working is available in particular types of jobs but not others (including care, retail, hospitality and manufacturing).

Availability of childcare outside standard hours could help some work more, but there were also barriers to using this such as not wanting to work evenings and weekends, wanting to spend time with the children during those hours, and the assumption that this type of childcare would be expensive and hard to access.

Conclusions

The UC Childcare offer is supporting many parents to get back into work and work more hours. However there are barriers for some parents that could be overcome with changes to the scheme; in particular communicating it earlier and more clearly, switching from a reimbursement model to an upfront model, and removing the need for Ofsted registration of providers to allow access to a wider range of activities for school aged children.  

Introduction and Research Objectives

Research Context and Aims

The aim of the research was to understand UC claimants’ childcare choices, the impact of different forms of government childcare support, and how this feeds into whether they feel able to work, look for work, stay in work, or to work more.

Specifically:

• Childcare
  • What are parents’ childcare preferences?
  • How do they make decisions on which childcare to use, and how much?
• Work
  • What are parents’ childcare preferences?
  • How do they make decisions on which childcare to use, and how much?
• Universal Credit
  • What are the barriers to using UC Childcare and how does uptake compare to other government support?
  • What impact does UC Childcare have / could it have on parents?
  • How does the offer interact with other government childcare support?
  • What could improve uptake of UC Childcare?

Overview of Method

The research comprised a large-scale survey, and qualitative research with UC claimants with children aged up to 16.

Survey

The quantitative strand for this study consisted of a mixed mode survey, starting with an online survey followed by targeted telephone follow-up. Fieldwork took place between 6 October – 11 November 2021 and 12,910 claimants were interviewed. The survey sample was weighted to be representative of the UC population of those with children working and claiming UC Childcare costs support; working but not claiming; and not working.

Qualitative Research

In the qualitative strand, Ipsos researchers conducted 60 in-depth interviews with survey participants. Participants were purposively sampled to reflect demographic and attitudinal diversity. In the interviews, we explored four different scenarios with parents, to help better understand the interactions between UC Childcare and parental decision making.

Participants were asked to conduct diaries pre- and post-interview using Ipsos AppLife. AppLife is a mobile platform through which participants completed questions and a diary task. 60 participants used the platform to answer questions about their childcare use and work status before and after their depth interview. The online diary covered feelings and decisions about work and childcare.

These exercises guided discussion in the interviews, enriched the quantitative findings and revealed how participants’ childcare use and work may have changed over the fieldwork period.

Reporting conventions

All quantitative findings are weighted (to the profile of the specified UC population) but we include the unweighted base for all charts, so you can see how many people answered each question.

All subgroup differences identified are significantly different at the 95% confidence level.

Understanding the Survey Population

This chapter presents an overview of the survey population and the key characteristics shaping claimants’ use of childcare, working practices and views of UC Childcare.

Figure 1: Number and ages of children of claimants

41% have one child

59% have multiple children

Age	Percentage
Pre-school age only	16%
School age only	60%
Mix of pre- and school age	24%

Base (unweighted): All respondents (12,910)

Around one in five (22%) respondents have a long-term disability or health condition that impacts their ability to work. A similar proportion (22%) have a child with SEN, a health condition or disability.

Working status was one of the key characteristics shaping claimants’ use of childcare, working practices, and views of UC Childcare. Working parents worked an average of 25 hours per week – the typical school day. Of joint claims, in 57% both work, in 34% one works, and in 10% neither work. See Figure 2.

Figure 2: Working status

Working status	Percentage
Respondents working	68%
Respondents not working	32%

Working parents worked an average of 25 hours per week - the typical school day:

• 12% less than or equal to 10 hours
• 53% 11 to 30 hours
• 34% 31 or more hours

Type of claim	Percentage
Joint claim	50%
Single claim	50%

Of joint claims

• in 57% both work
• in 34% one works
• in 10% neither work

Base (unweighted): All respondents (12,910), all in work (8,420), all with a joint claim (4,776)

Survey respondents came from across Great Britain (Figure 3)

Figure 3: Location of survey respondents

Location	Percentage
East	9%
East Midlands	8%
London	17%
North East	4%
North West	10%
Scotland	7%
South East	14%
South West	8%
Wales	4%
West Midlands	10%
Yorkshire and Humber	10%

Base (unweighted): All respondents (12,910)

Groups of interest

The survey was conducted with three groups of interest^{[footnote 2]}:

• Group 1: Using UC Childcare (6% of claimants in the survey)
  • Working part-time 50%
  • Joint claim 33%
  • Pre-school age only 33%
  • School age only 34%
  • Child health condition or disability 13%
  • Parent (respondent) health condition or disability 12%
• Group 2: Working and not using UC Childcare (63%)
  • Working part-time 52%
  • Joint claim 62%
  • Pre-school age only 15%
  • School age only 63%
  • Child health condition or disability 18%
  • Parent (respondent) health condition or disability 14%
• Group 3: Not working and not using UC Childcare (32%)
  • Not working 100%
  • Joint claim 28%
  • Pre-school age only 17%
  • School age only 57%
  • Child health condition or disability 32%
  • Parent (respondent) health condition or disability 40%

Group 2 are more likely to have joint claims and school age children. Group 3 have higher proportions of parents and children with SEN, health conditions or disabilities.

The working patterns of Groups 1 and 2 varied. Group 1 (those using UC Childcare) were more likely to be single claimants, whereas those in Group 2 (working but not using UC Childcare) were more likely to work variable hours, work weekends, or be joint claiming (whether the partner in the claim was working or not). See Figure 4.

Figure 4: Differing working patterns of Groups 1 and 2

Group 1 6% using UC childcare

• Single claimants (69%), joint claim both working (28%), joint claim one working (3%)
• Number of hours they work varies each week (17%)
• Work weekends (28%)
• Work in the day (8am to 6pm) (94%)

Group 2 63% working but not using UC childcare

• Single claimants (38%), joint claim both working (43%), joint claim one working (20%)
• Number of hours they work varies each week (27%)
• Work weekends (37%)
• Work in the day (8am-6pm) (86%)

Base (unweighted): All Group 1: Using UC Childcare (4,739), Group 2: Working and not using UC Childcare (4,142), all with a joint claim in Group 1 (1,652), all with a joint claim in Group 2 (1,525).

Parents’ Use of Childcare

This chapter covers why parents use childcare, why they do not, and their barriers to using (more) childcare.

Use of childcare

Use of formal childcare is highest for those with children of pre-school age and mixed ages. No childcare or informal childcare is more common for those with school age children (see Figure 5).

Figure 5: Types of childcare used by child age

Type of childcare	Pre-school only	School age only	Mix of ages
Net: Formal	66%	34%	65%
Family and/or friends	27%	38%	30%
Private nursery (all year)	31%	1%	23%
Nursery at a school (term time only)	31%	3%	33%
Before / after school clubs	0%	23%	16%
Registered childminder	5%	5%	8%
School holiday clubs	1%	13%	10%
No childcare	21%	43%	25%

Question: B1: Which, if any, of the following types of childcare do you use? NB. Respondents could select multiple codes at this question.

Base (unweighted): All respondents (12,910), all with pre-school children only (3,164), all with school age only (6,323), all mixed (3,421), all who use formal childcare only (5,501), all who use informal childcare only (1,410), all who use a mix of childcare (2,714), all who do not use any childcare (3,285).

Those using only formal childcare are more satisfied with their childcare arrangements (66%) than those who are using only informal childcare (55%) or no childcare (48%).

There were differences in the type of childcare used by group. Almost half in Group 2 and over a third in Group 3 use formal childcare. Three in ten of Group 2 and almost half of Group 3 do not use any childcare (see Figure 6).

Figure 6: Types of childcare used by Group

Type of childcare	Group 1	Group 2	Group 3
Net: Formal	93%	47%	38%
Family and/or friends	29%	41%	21%
Private nursery (all year)	42%	10%	7%
Nursery at a school (term time only)	17%	13%	18%
Before / after school clubs	32%	20%	10%
Registered childminder	21%	6%	3%
Net: Mix of formal and informal	29%	19%	9%
No childcare	0%	31%	49%

Question: B1: Which, if any, of the following types of childcare do you use? NB. Respondents could select multiple codes at this question.

Base (unweighted): All respondents 12,910 (G1 - Using UC Childcare: 4,739; G2 - Working and not using UC Childcare: 4,142; G3 - Not working and not using UC Childcare: 4,029)
Single claimants are more likely to use childcare than joint claimants. Single claimants tend to use formal instead of informal care providers when using childcare (see Figure 7).

Figure 7: Types of childcare used by single or joint claimant status

Type of childcare	Single claimant	Joint claimant
Net: Formal	48%	46%
Family and/or friends	38%	31%
Private nursery (all year)	10%	13%
Nursery at a school (term time only)	14%	16%
Before / after school clubs	19%	16%
Registered childminder	6%	5%
School holiday clubs	12%	9%
No childcare	32%	38%

Question: B1: Which, if any, of the following types of childcare do you use? NB. Respondents could select multiple codes at this question.

Base (unweighted): All single claimant households (8,134), all joint claimant households (4,776).

Use of formal childcare

Over half use formal childcare to enable them to work. The perceived quality of the setting and benefitting the child were other main reasons for using formal childcare (Figure 8).

Figure 8: Reasons for using formal childcare

Reasons for using formal childcare	Percentage
It is good quality	55%
So I can work	54%
It benefits my child(ren)	49%
Location	40%
Affordable	27%
Flexible	26%
For child’s education	21%
Recommendation	10%
Informal childcare not available	9%
Enables me to do other things	8%

Question: B9:  You’ve said you use childcare to look after your child(ren). Why do you use this type(s) of childcare for your child(ren)?
NB. Respondents could select multiple codes at this question.

Base (unweighted): All who use formal childcare (9,484). Please note ‘So I can work’ was only shown to those in work (5,282).

Qualitative research shows that parents see formal childcare as beneficial for children’s social development and school readiness by establishing daily routines.  Government subsidies, such as free funded hours for pre-school children, reduce childcare costs, making formal care more accessible.  Parents’ choices regarding childcare are influenced by word-of-mouth recommendations through online forums and offline conversations, such as those occurring in playgrounds, to gather information and make informed decisions.

I can’t educate them at home like they can in nursery.

Single claim, not working, formal childcare

Those using formal childcare are most likely to be satisfied with their childcare arrangements. Overall, 6 in 10 are satisfied with their arrangements (29% are ‘very’ satisfied, see Figure 9). Respondents using only formal childcare are more satisfied with their childcare arrangements (66%) than those who are using only informal childcare (55%) or no childcare (48%).

Figure 9: Satisfaction with childcare by broad type used

Satisfaction	Formal childcare only	Informal childcare only	Mix	None
Net: Satisfied	66%	55%	61%	48%
Net: Dissatisfied	11%	11%	16%	10%

Question: B5: How satisfied or dissatisfied are you with your current childcare arrangements?

Base (unweighted): All respondents (12,910), all who use formal childcare only (5,501), all who use informal childcare only (1,410), all who use a mix of childcare (2,714), all who do not use any childcare (3,285), all employed (8,420), all unemployed (4,490).

Satisfaction is higher for childcare types which offer greater availability and flexibility. These differences in satisfaction by childcare type are small but still statistically significant.

Figure 10: Satisfaction with childcare by specific type used

Type	Percentage
Registered childminder	73%
Private nursery - all year round	72%
Private nursery term time only	67%
School nursery - term time	65%
Before / after school club	58%
School holiday clubs	58%
Informal	58%
Nanny	56%

“Registered childminder” and “Private nursery - all year round” are significantly higher than satisfaction with other forms of childcare.

B5: How satisfied or dissatisfied are you with your current childcare arrangements?

Base (unweighted): All respondents (12,910)

Parents’ reasons for satisfaction with formal childcare are slightly different to the reasons for using it (see Figure 11).

Figure 11: Reasons for satisfaction with formal childcare (those using formal childcare only)

Reasons for satisfaction with formal childcare	Percentage
It benefits my child(ren)	76%
Trust the people	64%
Location	58%
The hours meet my needs	45%
Facilitates family/friend bonding	43%
Affordable/free hours	38%

B6:  Which, if any, of the following are reasons why you are satisfied with your childcare arrangements?
NB. Respondents could select multiple codes at this question.

Base (unweighted): All who are using formal childcare only and are satisfied with their childcare (4,056).

The qualitative interviews provided further insight into the use of formal childcare:

• Good parent-staff relationships are formed through active engagement between the two parties. Parents are kept informed of their child’s development through progress reports, apps, and journals.
• Formal childcare is seen to benefit child development by encouraging independence and socialisation with others. This is achieved through dedicated environments designed for play and learning.
• Formal childcare enables parents to work (and/or increase) standard hours as well as provides cover for school holidays, reducing the need to take (un)paid leave.

Qualitative research found that familiarity, comfort, and recommendations determined trust in providers. Recommendations came from informal and formal sources. Informal recommendations included friends, family, and online forums – e.g., Mumsnet, Facebook forums. Formal recommendations came from Ofsted. Childcare settings needed to be Ofsted-registered or rated highly by Ofsted. Ofsted registration is particularly important for parents of older children as it enables them to access childcare funding

I personally wouldn’t put my child with non-Ofsted childcare, if I didn’t know them.

Joint claim, both working, formal and informal childcare (11)

Comfort was another important factor. This was assessed by the child feeling at ease when in the provider’s care, the provider being attentive to the specific needs of children, particularly SEN and qualified in providing one-to-one care.

They’ve [children] both got key workers that spend a lot of one-to-one time with them, which I think is really important.

Single claim, not working, formal childcare (32)

If parents have previously used the provider for an older child they were also more likely to trust them. Trusting providers is more important for parents of pre-school and SEN children.

Ofsted

For early years, Ofsted registration is an important factor for determining quality and accessing funding. Parents using formal childcare were most aware of Ofsted.

In terms of parents with pre-school children, parents using core nursery hours were unwilling to use a childcare provider which was not Ofsted registered – this is an important quality control factor. They had not experienced difficulties finding Ofsted registered childcare so did not see this as a barrier.

They feel it is appropriate to only be able to use UC Childcare for Ofsted registered providers, to ensure quality control.

Those who needed out of hours childcare and relied on nannies – which were more expensive – were happier to use a non-Ofsted registered nanny to reduce the costs. UC Childcare enabled them to afford an Ofsted registered nanny.

I personally wouldn’t really leave my little one with a childminder, or in any kind of childcare, that wasn’t checked and official.

Single claim, working, formal and informal childcare (9)

I didn’t realise there were childminder people around who were not Ofsted registered.

Joint claim, working, formal and informal childcare (7)

I’ve always looked at Ofsted registered providers… I do not think I’ve seen many at all that were not.

Single claim, not working, formal and informal childcare (13)

I actually looked at the Ofsted report before I put her into nursery, because there’s no way on Earth that I’d put her into a nursery that had a really crappy report.

Joint claim, working, formal and informal childcare (7)

I wouldn’t let my child be looked after by a random person who hasn’t been Ofsted registered.

Single claim, one working, formal and informal childcare (18)

For parents with school-aged children, Ofsted is less of a consideration as they use less childcare out of school and wraparound care is provided by their school.

Amongst parents wishing to use childcare funding for older children, Ofsted registration is essential for doing so. However, it is the funding access rather than the quality assurance of Ofsted registration which is important in this instance.

Being able to use UC Childcare for extra-curricular enrichment activities which are not Ofsted registered would enable parents to afford this type of activity.

Other indicators of quality (Early Years)

Beyond Ofsted, a good environment and staff helped parents determine if childcare provider was good quality.

Parents reported the presence of sensory toys, outdoor play, and messy play, natural toys and a focus on non-electronic/non-screen-based toys and shared values, for example religious values or attitudes to using electronic devices as key quality indicators of a provider with a positive environment.

We’ve viewed quite a few and […] the environment they were in was a huge factor. We felt very comfortable with staff and the setting.

Single claim, one working, formal and informal childcare (4)

Regular communication including updates on child’s activities throughout the day helped to reassure parents.

[…] the final touch really for me to pay extra. They update everything that he does through the day […] that was quite important.

Single claim, not working, formal childcare (25)

The relationship staff have with children was also essential. Good quality providers had staff who were warm, welcoming and engaged with the child. Parents whose children had additional needs were looking for specially trained staff where needed e.g., speech therapy, autism, and ADHD (it is harder to find staff trained in managing physical health conditions).

The nursery we went to, they were the only one that actually paid attention to him […] it was a big thing for me […] I’ve got a really good relationship with his key worker.

Joint claim, both working, formal childcare (6)

That nursery that he’s in at the moment has got a certificate to help with speech and language therapy […] he’s thriving […] that’s really lovely.

Single claim, one working, formal and informal childcare (4)

Use of informal childcare

Benefits of spending time with family and friends and trust are main reasons for satisfaction with informal childcare (see Figure 12).

Figure 12: Reasons for satisfaction with informal childcare

Reasons for satisfaction	Percentage
Facilitates family/friend bonding	72%
Trust the people	66%
Affordable	59%
It benefits my child(ren)	37%
Flexible	31%
Location	27%

B6:  Which, if any, of the following are reasons why you are satisfied with your childcare arrangements?
NB. Respondents could select multiple codes at this question.

Base (unweighted): All using informal childcare and are satisfied with their childcare (774).

The qualitative interviews identified that participants saw the benefits of informal childcare as:

• Children have greater familiarity with friends and family compared with formal providers.
• It creates opportunities for children to spend time with relatives outside of the household.
• Parents had more trust in friends and family to meet the specific needs for children with health conditions or disabilities.
• Comparatively cheaper (or free of charge) than formal providers.

My mum normally just has her because you can’t trust her with anybody else. Yes, I wouldn’t want to put that on anyone else, and then something really bad happens.

Single claim, not working, no childcare (38)

The qualitative findings suggest that cost, convenience and trust are key reasons for using only informal childcare. Informal childcare is free to use and often included a reciprocal approach, where friends/ family members cover each others’ childcare needs instead of needing to pay for care.

Informal childcare was also seen to be more convenient than formal childcare in that it enables work outside of nursery opening hours, means parents can access additional childcare when needed, reduces the travel time and increases convenience for parents. Parents also felt that there was less urgency around drop off or pick up times when using informal childcare.

If need be, I can ask if they [grandparents] could have him a little bit less or a little bit more and it’s not costing me.

Single claim, working part-time, informal childcare (9)

Parents trusted informal childcare providers more. Their children are comfortable with friends/relatives, and happier to spend time with them than ‘strangers’. Relatives of children with SEND are likely to be familiar with the child’s health condition(s) and accustomed to their routine

Those using informal childcare only were more commonly working 11-20 hours (33%) than those using formal childcare (27%). They were also more likely to be single claim (55% vs 49% using formal childcare). Those working evenings / weekends / irregular hours more likely to rely on a mix of formal and informal childcare.

Not using childcare

Attitudes to work and childcare determine whether people are satisfied with not using childcare.  Figure 13 shows the reasons for satisfaction and dissatisfaction with this arrangement side by side.

Figure 13: Reasons for satisfaction/dissatisfaction with not using childcare

Reasons for satisfaction	Percentage
Prefer to look after my children myself	66%
Know what my child(ren) will be doing and they will be safe	54%
Facilitates family/friend bonding	53%
It benefits my child(ren)	44%
Affordable / free	41%

Reasons for dissatisfaction	Percentage
Harder for me to work	56%
Providing childcare myself is difficult and time-consuming	40%
It does not benefit my child(ren)	26%
Don’t think my children learn as much as they would with a different childcare arrangement	20%
Lack of suitable childcare	8%

B6/B7:  Which, if any, of the following are reasons why you are satisfied/dissatisfied with your childcare arrangements?
NB. Respondents could select multiple codes at these questions.

Base (unweighted): All who are not using childcare and are satisfied (1,525) / dissatisfied (348) with their childcare.

Reasons for not using formal childcare

The main reason why parents do not use formal childcare is cost. It is also seen as less necessary for older children (Figure 14).

Figure 14: Reasons for not using formal childcare

Reasons for not using formal childcare	Percentage
Too expensive / cannot afford to pay up front	44%
Don’t need to	36%
Lack trust in non-family / friends	18%
Availability doesn’t fit working hours*	14%
Child is too young/old	12%
Waiting for childcare funding (age)	9%
Lack of availability	9%
Concerns for health of child(ren) or household	8%
Don’t know what childcare is available	7%

B10: Why do not you currently use formal childcare for your child(ren)?

NB. Respondents could select multiple codes at this question.

*Options only shown to those in work.

Top answers shown only

Base (unweighted): All who are not using formal childcare (4,856), all pre-school only (819), all school age only (3,179), all single claimant households (2,846), all joint claimant households (2,010)

If we tried to send him to childcare based on my wages, that’s my wages gone.

Joint claim, both working, no childcare (11)

Claimants with pre-school aged children only were more likely to cite price as a reason for not using formal childcare than those with school aged children only (53% vs 41%). Single claimants were less likely to cite this as a reason than joint claimants (43% vs 46%).

Claimants with only school aged children were much more likely to say they do not use formal childcare because they do not need it (42%, compared to 16% of those with pre-school aged children only).

Single claimants were more likely than joint claimants to say they did not use formal childcare because it does not fit their working hours (20% vs 11%).

Notably, 25% of those using no childcare have a child who has SEND, compared to 71% of those without SEND.

Encouraging non-users to use formal childcare

With cost cited as the biggest barrier, making formal childcare more affordable could encourage parents to start using it. The survey explored how non-users could be encouraged to start using formal childcare; the results are displayed in Figure 15.

Figure 15: How non-users could be encouraged to start using formal childcare

How non-users could be encouraged to start using formal childcare	Perentage
NET: All reasons related to affordability	42%
More affordable or receiving further financial support	38%
Childcare was better quality / trusted it more	31%
Meeting children’s accessibility needs*	27%
Childcare was flexible or convenient to working hours	26%
Being in work**	18%
Childcare funding for younger children	14%
Provider accepting government funding support	14%
Being easy to get to or from home / work	12%
Information about what is available in local area	10%
Don’t want / need to use childcare	34%

Question B11: What, if anything, would encourage you to start using formal childcare?

NB. Respondents could select multiple codes at this question.

Base (unweighted): All who do not use formal childcare (4,856), all pre-school only (819), all school age only (3,179), all employed (2,260), all unemployed (2,596), all single claimant households (2,846), all joint claimant households (2,010).

*This option was only shown to those with children with a health condition/disability (1,153),

** This option was only shown to those unemployed (2,596)

Claimants with pre-school children only were more likely to cite any reason related to affordability than those with school-aged children only (60% vs 36%). Conversely, claimants with school-aged children only were more likely to say they did not want or need to use childcare (42%) than those with pre-school-aged children only (11%).

Qualitative findings suggest affordability, availability, and accessibility are key to using formal childcare. Parents felt that childcare could be made more affordable by encouraging more providers to accept government childcare funding, as those that do tend to be fully booked, limiting the pool of affordable childcare providers.

Parents felt that availability of childcare could be enhanced through extended opening hours, greater availability of childcare providers (particularly in rural areas) and a wider range of childcare available to older children (e.g., more age-appropriate activities). Accessibility included more information on the childcare available in local areas and increasing the number of childcare providers able to care for children with health conditions and disabilities.

As they start scaling up in age, I do not think the Ofsted-registered school holiday schemes and that exist […] The Ofsted-registered ones seemed to be geared up for small kids.

Single claim, working full-time, informal childcare (54)

Parents of children with SEND

Parents of children with SEND face specific challenges to using childcare. The type of support needed relates to the SEND of the child. For example, children with autism require routine and a quiet environment and children with medical conditions need a setting which can confidently support them (for example, one child in the sample had a severe form of epilepsy and sometimes required sedating).

Parents may be reluctant to use formal childcare for a child with SEND (apart from a school). They had concerns about whether it is right for the child and a preference to have them at home where they were comfortable and parents confident about care they are receiving. Parents who were open to using childcare need one-to-one support with highly trained carers/nannies.

There are other funding options available that parents can use to enable childcare use:

• Direct Payments – a payment card which allows parents to arrange care and services themselves rather than receive them directly from their Local Authority.
• Disability Living Allowance for children – tax free benefit for those caring for children with disabilities.
• Carers Allowance – offered to people who give regular and substantial care to a disabled person.

Finding childcare is really, really difficult. Childminders do not want to take the responsibility on […] I was told that it would be too much for them as [child] would need one-to-one.

Joint claim, working part-time, informal childcare (27)

Regional Patterns in Childcare Use

Patterns of childcare use are similar across the country (Figure 16).

Figure 16: Regional patterns of childcare use

Location	Formal only	Informal only	No childcare
East	28%	15%	36%
East Midlands	31%	20%	32%
London	34%	15%	38%
North East	27%	19%	36%
North West	35%	15%	32%
Scotland	24%	25%	36%
South East	26%	19%	35%
South West	32%	15%	32%
Wales	26%	21%	32%
West Midlands	29%	16%	38%
Yorkshire and Humber	31%	18%	34%

Question B1. Which, if any, of the following types of childcare do you use? 

Base (unweighted): All respondents (12,910).

Satisfaction with childcare arrangements are broadly similar across the country, except London where satisfaction levels are significantly lower (Figure 17).

Figure 17: Regional differences in satisfaction with childcare

Location	Percentage
East	61%
East Midlands	56%
London	49%
North East	58%
North West	56%
Scotland	55%
South East	58%
South West	65%
Wales	57%
West Midlands	57%
Yorkshire and Humber	60%

Question: B5. How satisfied or dissatisfied are you with your current childcare arrangements overall?

Base (unweighted): All respondents (12,910).

Work and Childcare

Barriers to work

When it comes to work, childcare is the biggest barrier parents face. Three in five (61%) find childcare makes it difficult to find work or increase their earnings; this rises to three in four parents with pre-school children (Figure 18).

Figure 18: Barriers to increasing earnings

Barriers to increasing earnings	Percentage
Childcare	61%
Lack of relevant skills, qualifications, or experience	25%
My physical or mental health, or learning difficulty	25%
I don’t want or need to work/work more	20%
Commute to work	20%

Question: B4: Which, if any, of the following make it more difficult for you to work/increase your earnings?

Base(unweighted): All respondents (12,910)

The proportion citing “Childcare” as a barrier was higher among:

• Those with pre-school aged children only (74% vs 51% with school aged children only)
• Single claimants report childcare as a barrier to work (65% vs 56% of joint claimants)
• Joint claimants when both work (63%), vs. 50% where one parent works, and 38% where neither parent works.

Childcare as a barrier

Childcare is the most common barrier to work, and affordability is the biggest barrier to childcare. High costs prevent parents from working and prevent formal childcare being used. Two-thirds (67%) would like to work (more) but feel childcare is too expensive to make it worthwhile. This is a bigger issue for parents of pre-school age children only (77% v. 60% of school age only) and joint claimants where both are working (71% v. 60% where one is working). Overall, 44% of parents say they do not use formal childcare because it’s too expensive – the top reason.

I just can’t physically afford that amount of money … my [family members] could take her out for the day and watch her [instead].

Joint claim, one working, informal childcare (48)

Nearly four in ten (39%) who are dissatisfied with their childcare arrangements attribute this to cost – the top reason.

Another barrier to childcare is flexibility. Parents need flexibility from their employer and childcare that fits around work (Figure 19).

Figure 19: Agreement with statements around childcare and working hours

Agreement with statements around childcare and working hours	Agree	Neither agree nor disagree	Disagree
I need my employer to be flexible to accommodate childcare	77%	17%	6%
It’s hard to find childcare to fit around work	60%	27%	13%
I only want to work during school hours	60%	23%	17%

Question: B3: And how much do you agree or disagree with these statements?

Base (unweighted): All respondents (12,910)

The only way that I’m going to go and get back into a decent career with prospects is not until my son’s in school.

Joint claim, working, formal childcare (2)

You do feel like, a lot of the time, you’re working to pay for the nursery bills.

Joint claim, one working, formal and informal childcare (5)

Attitudes to work

Attitudes to work are not a barrier for parents to get into work or increase their hours. Parents want to work to set a good example for their children and, to a lesser extent, for their own fulfilment (Figure 20).

Figure 20: Agreement with statements around attitude to work

Agreement with statements around attitude to work	Agree	Neither agree nor disagree	Disagree
Parents who work are good role models for their children	78%	18%	4%
I would be happier and more fulfilled if I was working (amongst unemployed)	59%	28%	13%

Question: B3: How much do you agree or disagree: Parents who work are good role models for their children
B2_2: How much do you agree or disagree: I would be happier and more fulfilled if I was working

Base (unweighted): All respondents (12,910); All unemployed (4,490)

There were some differences in responses based on claimant characteristics. Just over eight in ten (82%) of parents who both work agree that parents who work are good role models for their children, compared to just over six in ten (61%) where neither parent works.

I want my son to see that you can work hard for things in life. So, I want to work […] I’ve always worked since I was sixteen.

Joint claim, both working, formal childcare only (6)

Approaching half (48%) of those who are unemployed and have a disability or health condition that impacts their ability to work agreed they would be happier and more fulfilled if they were working.

Decision making and childcare

Parents have to piece together a jigsaw of work, childcare, personal circumstances, and their finances when making decisions about childcare. All four feed into decisions, but the ‘main’ factor is personal choice and circumstance.

Work

Work factors which influence take up of childcare include: hours available, location, employer flexibility, skills match, taking a ‘temporary’ versus a long-term job, personal importance of work.

The nursery fees … they took up my whole wage packet. I was working for literally nothing. I did it because I wanted to work.

Single claim, working, formal and informal childcare

Formal and informal childcare

Factors relating to use of formal childcare include: how much parents can afford, how much is right for their child, location, quality.

Factors relating to use for informal childcare include: availability, how much time parents want to spend with children

We went around looking and just went with the closest place at the time.

Joint claim, one working, formal childcare (26RR)

Money

Parental and family decisions about money included how much is needed (for childcare and lifestyle) and what would make parents better off.

You do feel like, a lot of the time, you’re working to pay for the nursery bills.

Joint claim, one working, formal and informal childcare (5)

Interpersonal and health

Interpersonal and health factors which were taken into consideration included children’s health needs (which shape the care they need) and parents’ health needs (which shape whether they can work). For joint claims this depended on what works best for the couple.

I do feel that it should never be taken away from a mother to reach those milestones with their newborns, and I do feel as if the whole system is just trying to force parents straight into work… and they miss out those milestones.

Single claim, not working, informal childcare only (60)

Case study: Balancing work, childcare and affordability

Who are they?

Two-parent household, with an 18 year old (doing an apprenticeship), two teenagers (at school) and a four year old (who has just started primary school). Her current partner is the father of the four year old.

The respondent works full-time Monday to Friday as an accounts assistant, and her partner works full-time Monday to Friday as a carpet fitter. They ‘get by’ financially, living month to month, and feel their finances are better now their youngest has started school. They use breakfast and after school clubs attached to the primary school for the four year old, and also have support from a grandparent who works part-time. The decision on the balance of childcare was based around the hours on offer. They pay extra for the later session at 6pm so they have the flexibility to pick their child up after work (the other option was 4.15pm which was impossible). They are happy with their childcare as it works well with their work, provides flexibility and isn’t too expensive.

We had to check it was going to be affordable, or whether we’d have to try and use family. But it’s mainly the reliability of paying for childcare as well […] if you use family [they might have other plans and] you might not have someone to cover.

Joint claim, both working, formal and informal childcare (1)

The jigsaw is hardest for parents with younger children. They need more care, which is more expensive, harder to fit around work, and parents want to spend time with them while they are young (see Figure 21).

Figure 21: Challenges of parents of pre-school age children

74%

with pre-school age children only say childcare is a barrier (v. 51% with school age only)

75%

with pre-school age children only want to work when their children are older (v. 60% with school-age children only

81%

with pre-school age children only would find it difficult to increase their hours, even if offered (v. 72% with school age only)

Questions: B4: Which, if any, of the following make it more difficult for you to work/increase your earnings?; B3_2: I would like to work when my children are older - agree/disagree; B2_3: It would be difficult for me to increase my hours of work now, even if I was offered it - agree/disagree

Base (unweighted): All respondents (12,910); for B4 & B3_2: all with pre-school aged children only (4,166), all with school aged children only (5,333); for B2_3: all with pre-school aged children only (2,711), all with school-aged children only (3,537)

The following factors lead parents to waiting until their children are older or start school to move back into work:

• The high cost of childcare for younger children (as they need more hours)
• Substantial government support not starting until children are 3
• Lack of availability – some providers not taking under 2s

I do want to go back to work. I probably will wait until my youngest turns three, though, and once she’s in nursery for the fifteen hours.

Joint claim, not working, formal and informal childcare (13)

For those open to using childcare, the ideal arrangements are those that facilitate work and benefit the child.

Parents who would like to use childcare need to be able to comfortably afford this.

Personally, for me, I’d like to go back to work full time. I’d like to go back into my career. Yes, that’s what I would want to do if I had the choice.

Joint claim, both working, formal and informal childcare (1)

It’s really difficult to find a job that allows me to work for an hour, [but it’s good for my child] to know other kids and to play with them and enjoy a different experience [at nursery]

Single claim, working, informal childcare (6)

I would have liked to have put him in nursery a bit longer. Because I feel like he benefits from it quite a lot… But, the money’s just not feasible for me.

Joint claim, both working, formal and informal childcare (6)

I’d like to get back to having a job, but I do not want to have to, kind of, work to pay for the nursery bills but I do find it so good for their development.

Joint claim, not working, formal and informal childcare (5)

UC Childcare Costs Support

This chapter looks at awareness and understanding of UC Childcare costs support (UC Childcare), barriers and levers to take-up and the impact of the offer.

Childcare use among the survey groups

Among claimants who are not using UC Childcare, almost half in Group 2 (working and not using UC Childcare) and a third in Group 3 (not working and not using UC Childcare) use formal childcare of some form. Conversely, three in ten of Group 2 and half of Group 3 do not use any childcare. See Figure 22.

Figure 22: Use of childcare by survey Group

Use of childcare by survey Group	Group 1	Group 2	Group 3
Net: Formal	93%	47%	38%
Family and / or friends	29%	41%	21%
Private nursery (all year)	42%	10%	7%
Nursery at a school (term time only)	17%	13%	18%
Before / after school clubs	32%	20%	10%
Registered childminder	21%	6%	3%
Net: Mix of formal and informal	29%	19%	9%
No childcare	0%	31%	49%

Question: B1: Which, if any, of the following types of childcare do you use? By childcare we mean time outside of school your child(ren) are cared for by someone who is not their parent / guardian. Please think about term-time and school holidays.

Base (unweighted): All respondents 12,910 (G1 - Using UC Childcare: 4,739; G2 - Working and not using UC Childcare: 4,142; G3 - Not working and not using UC Childcare: 4,029).
The 15 hours free childcare for 2-year-olds and 3 to 4-year-olds are the most commonly used forms of support (Figure 23).

Figure 23: Use of childcare support

Childcare support	Pre-school only	Mix of ages
UC childcare	14%	9%
15 hours for 2 year olds (England only)	19%	16%
15 hours for 3-4 year olds (England only)	18%	18%
30 hours for 3-4 year olds (England only)	10%	10%
None of these	38%	45%
Don’t know	4%	3%

D2: And which, if any, of the following are you currently using? 

Base (unweighted): All aware of each option (10,951).

UC Childcare use is less likely among joint claim where both are working (7%) or single claim working (6%), and among claimants with school aged children only (5%). In fact, 86% of claimants with school aged children only did not use any form of childcare support at all.

The qualitative research identified common themes in the types of parents who were more likely to rely on multiple childcare offers. Parents were typically made aware of offers through Jobcentre Plus, DWP, Google, employment, school/nurseries, friends or family. 

Characteristics of those claiming multiple childcare offers are as follows:

• With children of pre-school or primary school age. Those with children in secondary school are less likely to use any childcare offers, and instead use informal care or trust their children to provide their own care.
• Lone parents, particularly those who do not receive financial/ parental support from the other parent.
• Working at least part time to be eligible for 30 hours free / UC Childcare.
• Some parents with more than one child use more than one childcare offer, depending on their eligibility.

Awareness and Understanding of the Offer

Those using UC Childcare are, on the whole, more aware of government support than those who are not (Figure 24).

Figure 24: Awareness of different forms of government support by group

Government support	Group 1	Group 2	Group 3
Flying Start	46%	46%	52%
15 hours for 3-4 year olds (England only)	56%	46%	49%
15 hours for 2 year olds (England only)	56%	41%	49%
30 hours for 3-4 year olds (England only)	63%	46%	37%
Working Tax Credits	42%	41%	37%
UC childcare	100%	37%	26%
Childcare vouchers	38%	28%	22%
Childcare offer for Wales (Wales only)	44%	29%	14%
Funded Early Learning and Childcare (Scotland only)	35%	26%	23%
TFC	31%	16%	10%
None of these	0%	11%	13%
Don’t know	0%	9%	11%

D1: Which, if any, of the following government financial support for childcare had you heard of before today?

Base (unweighted): All respondents (G1 - Working and using UC Childcare: 4,739; G2 – Working and not using UC Childcare: 4,142; G3 - Not working and not using UC Childcare: 4,029), Wales (G1: 208; G2: 173; G3: 195), England (G1: 4,739; G2: 3,714; G3: 3,536), Scotland (G1: 312; G2: 255; G3: 298).

People are more likely to be aware of childcare offers targeted at their child/ren’s age group. Awareness is highest of the 15 and 30 hours free schemes, which are simplest for parents to administer. See Figure 25.

Figure 25: Awareness of different forms of government support by age of child(ren)

Government support	Aged 0-1	Aged 2-4	School age only
Flying Start (Wales only)	64%	54%	43%
15 hours for 3-4 year olds (England only)	52%	59%	46%
15 hours for 2 year olds (England only)	53%	57%	41%
30 hours for 3-4 year olds (England only)	50%	55%	43%
Working Tax Credits	35%	32%	44%
UC childcare	40%	41%	36%
Childcare vouchers	24%	25%	28%
Funded Early Learning and Childcare (Scotland only)	34%	42%	21%
TFC	20%	20%	14%
None of these	9%	5%	12%
Don’t know	7%	6%	10%

Question: D1: Which, if any, of the following government financial support for childcare had you heard of before today?

Base (unweighted): parents of children aged 0-1 years (3,407), parents of children aged 2-4 years (3,179), all parents of school age children only (6,323); Wales (0-1 year olds: 155; 2-4 year olds: 145; school age only: 261), England (0-1 year olds: 3,023; 2-4 year olds: 2,820; school age only: 6,253), Scotland (0-1 year olds: 228; 2-4 year olds: 214; school age only: 454).

There is a clear gap between those using formal childcare and awareness of UC Childcare (Figure 26).

Figure 26: Awareness of UC Childcare and use of formal childcare

Group	Aware of UC Childcare costs support	Using formal childcare
Group 1	100%	93%
Group 2	37%	47%
Group 3	26%	38%

Question: B1: Which, if any, of the following types of childcare do you use? By childcare we mean time outside of school your child(ren) are cared for by someone who is not their parent / guardian. Please think about term-time and school holidays. D1: Which, if any, of the following government financial support for childcare had you heard of before today?

Base (unweighted): All respondents 12,910 (G1 - Working and using UC Childcare: 4,739; G2 - Working and not using UC Childcare: 4,142; G3 - Not working and not using UC Childcare: 4,029).

Those using only the free hours offers are less aware of UC Childcare. They are also less satisfied with their childcare than those claiming UC Childcare (Figure 27).

Figure 27: Awareness of and satisfaction with UC Childcare, by offers used

Awareness of UC childcare costs support by use of other offers	Percentage
Total	38%
Only claiming 15 hours free for  2 Year Olds	31%
Only claiming 15 / 30 hours free for 3 Year Olds	34%

Satisfaction with childcare by offers used	Percentage
Claiming UC Childcare costs support and other offers	83%
Only claiming UC childcare costs support	78%
Only claiming 15 hours free for 2 Year Olds	67%
Only claiming 15 / 30 hours free for 3 Year Olds	67%

Question B1: Which, if any, of the following types of childcare do you use? By childcare we mean time outside of school your child(ren) are cared for by someone who is not their parent / guardian. Please think about term-time and school holidays.
D1: Which, if any, of the following government financial support for childcare had you heard of before today?
B5 - How satisfied or dissatisfied are you with your current childcare arrangements overall?

Base (unweighted): All respondents 12,910

Source of awareness

GOV.UK and friends or family are the most common places claimants first hear about UC Childcare (Figure 28). There is little variation in levels of awareness of UC Childcare by claimant type.

Figure 28: Where first heard about UC Childcare

Source	Percentage
Government website	22%
Friends or family	21%
Work Coach	18%
Through Universal Credit	11%
Local Authority	5%
Don’t know	12%

Question E1: Where did you first hear about help with childcare costs for people claiming Universal Credit?

Base (unweighted): All who are aware of UC Childcare (7,400) and who have pre-school age children only (1,939).

Top answers shown only. Respondents could select multiple responses.

NB. Group 1: Using UC Childcare, Group 2: Working and not using UC Childcare, Group 3: Not working and not using UC Childcare.

“Friends or family” as a source of hearing of UC Childcare was more common among those with pre-school aged children only (30%). The qualitative research showed the importance of ‘the nursery gate’ with parents of pre-school children hearing about Government support from other parents.

Understanding of UC Childcare

One third of parents find UC Childcare easy to understand. There are differences by support type, shown in Figure 29.

Figure 29: Understanding of UC Childcare by support type

Type of childcare	Proportion finding it easy to understand
15 hours for 2 year olds (England only)	51%
15 hours for 3 to 4 year olds (England only)	51%
30 hours for 3 to 4 year olds (England only)	44%
Funded Early Learning and Childcare (Scotland only)	43%
Flying Start (Wales only)	40%
Childcare Offer for Wales (Wales only)	34%
UC Childcare	30%
Working Tax Credits	25%
TFC	21%
Childcare vouchers	20%

Question D4: How easy or difficult have you found understanding the following childcare costs support schemes?

Base (unweighted): All who are aware of each scheme – childcare vouchers (3,842), TFC (2,557), WTC (5,133), UC Childcare (7,400), Flying Start (286), Funded Early Learning and Childcare (247), Childcare offer for Wales (176), 30 hours for 3-4 year olds (5,803), 15 hours for 2 year olds (5,781), 15 hours for 3-4 year olds (5,933).

Less than half who use UC Childcare find it easy to understand, whilst non-users find it difficult or do not know (Figure 30).

Figure 30: Understanding of UC Childcare by Group

Group	Easy	Neither easy nor difficult	Difficult	Don’t know
Group 1	46%	23%	29%	2%
Group 2	30%	23%	28%	20%
Group 3	20%	29%	25%	26%

Question: D4_1 - How easy or difficult have you found understanding the following childcare costs support schemes? Universal Credit childcare costs support

Base (unweighted): All who are aware of UC Childcare in Group 1 - Working and using UC Childcare (4,739), Group 2 - Working and not using UC Childcare (1,582), Group 3 - Not working and not using UC Childcare (1,079).

Claimants heard about UC Childcare through word of mouth or their own internet searches. They find the basics easy to understand but lack understanding of how it applies to their own situation and how much money they will receive. This uncertainty is a key barrier to take-up.

It’s not 85%. It misinforms people… they’ll just see 85% and think ‘great, that’s 85% of my childcare paid’. Well, it’s not. It’s only up to £646, which a lot of the childcare, for private childcare, is way above that.

Joint claim, both working, no childcare (on maternity leave)

Experiences of using childcare

Ease of use

Those using UC Childcare as well as other government support for childcare found the other support easier to use.

The qualitative interviews showed that parents did not really think about how their UC Childcare payments and their other government support payments interacted.

The qualitative interviews also found that all participants thought applying for 15 and / or 30 free hours easier than the UC Childcare application, as well as the ongoing management of the scheme. This was intensified as formal childcare providers were able to help with 15 or 30 free hour applications but seemed less able to help with UC Childcare.

Parents did not need to worry about or take any action in relation to 15 or 30 hours after the initial application but had to keep providing evidence to DWP for UC Childcare.

We found it [30 hours free] very easy, yes. I can’t remember there being any issues with that… I think it was maybe a couple of emails. It was all done very swiftly.

Joint claim, both working, formal and informal childcare

They [15 & 30 free hours] were so much easier [than UC Childcare]. It was just so much easier, it was just the nursery helps a lot.

Single claim, working, formal childcare used

It [application for 15 hours free] was really straightforward, I filled out a form online and within a couple of weeks, I’d received a message back to say, ‘You got it, this is your code,’ and that was it.

Joint claim, one working, formal childcare used

Satisfaction with childcare arrangements

Those claiming either UC only or free hours only were broadly satisfied with their care arrangements. Both have their advantages: UC Childcare can overcome barriers around limited hours offered by free funding, whereas free funding requires little to no intervention once set up, unlike UC Childcare. 

Those aware of the UC Childcare offer are more likely to be satisfied with their childcare arrangements than those who are not.

Among claimants using the free hours offer only, most are satisfied with being able to use free childcare, without which some would not be able to afford childcare. However, 15 hours is perceived to be too few hours to work and this offer is therefore mainly to benefit the child, through socialisation. The 30 hours offer (at the time available to children aged 3 or 4) fits better with supporting work. Parents using this offer and not UC Childcare reported that they did not need any additional childcare hours (although this would still limit their working hours). When using the 15 or 30 hours offers, parents whose children attended nurseries which set limits about how the hours could be used, did not having a choice of when or how to use the hours. For example, they could not flex this to have two longer days of childcare.

Claimants using UC Childcare only were doing so because they are not entitled to other alternative childcare offers because their child(ren) were either too young (i.e., under 2 years old) or too old (i.e., of school age). However, this group did benefit from being able to access more childcare hours than using free hours only.

Reasons for not using government childcare funding support

Non-use of any government childcare funding support was due to lack of awareness.

The qualitative research gave an insight into reasons for not using government childcare schemes:

• Lack of awareness – parents found out about the schemes from nursery or through word of mouth
• Ineligible for schemes as children were either too young or too old to qualify
• Not using any formal childcare for children in full-time education and / or old enough to be on their own after school. In addition working from home led to a reduction in use of wraparound childcare. Parents view this positively: wraparound is not seen as educational / benefitting child so a reduction in use is helpful and cost-saving.
• Confusion and uncertainty about how to use the schemes.

When you apply for Universal Credit, and obviously you apply, they know I’m working, and they know, you know, what I’m getting, and they never mentioned, ‘Oh also, would you like to apply for this at the same time, you could be entitled to?’ So, you know, that was something that I found really quite strange, and I thought, ‘Why did they not say?.

Single claim, working, informal childcare (56R)

It’s difficult to know the system [Government childcare offers] that can help so you struggle on your own, you do not get anything.

Single claim, working, informal childcare (19)

Impact of UC Childcare

Around 8 in 10 people report the UC offer has helped them move into work or work more (Figure 31). However, those in work feel it’s not worth working more as they believe they will lose their UC and be worse off.

Figure 31: Extent to which UC Childcare helped claimants move into work/work more hours

UC Childcare has helped	Percentage
A lot	51%
A little	33%
Not at all	16%

Question: D5_1: To what extent has Universal Credit childcare costs support helped you to move into work or work more hours?

Base (unweighted): All Group 1 (4,739)
Qualitative findings suggest that UC Childcare has had a positive impact on those who use it – in terms of helping them move into work and on their finances. This is particularly the case for those whose wages are less than the nursery fees.

It’s brilliant. Without it, I wouldn’t be able to manage. It’s so vital for me to be able to work. If I didn’t get it, I would have to look after the children; I wouldn’t be able to work because nobody would really employ me.

Single claim, working, formal childcare (50)

However, when some do the maths, they feel they are better off financially by keeping to part-time hours (even if they would like to work more). They have to think about the impact of working more on their UC claim, as well as the cost of childcare. They do this by thinking about the jigsaw puzzle mentioned earlier.

We’re not using the maximum we can get from UC Childcare. We’d like a third day at nursery, ideally, which means I could work an extra day. But my additional salary, plus the 15% extra we’d have to find for childcare would make us worse off overall.

Joint claim, both working, formal childcare (6)

Differences between those who use the offer and those who do not

A CHAID (Chi Squared Automatic Interaction Detection) analysis^{[footnote 3]} shows that those using the UC Childcare offer are more likely to be:

• Working 26+ hours per week, single claim or with a working partner;
• Working 16 – 25 hours and satisfied with childcare;
• Working 0 – 15 hours, and didn’t find it hard to find childcare;
• Not working, but have a working partner.

In summary, parents are using UC childcare because they need to, are happy with the provision available to them and did not find it hard to access.

Reasons for not using UC Childcare Costs Support

This chapter explores the reasons why parents do not use UC Childcare costs support (UC Childcare) and the barriers to take up.

Reasons those aware do not use UC Childcare

Claimants who were aware of UC Childcare most commonly do not use it because they do not need formal childcare or cannot pay upfront (Figure 32).

Figure 32: Reasons for not using UC Childcare among those aware, by group

Reason	Group 2	Group 3
I do not need to use formal childcare	37%	32%
I can’t afford to pay upfront	27%	33%
Don’t know enough about it	20%	18%
Childcare is too expensive, even with it	20%	22%
Can’t use childcare	12%	13%
Don’t know	6%	11%
None of these	5%	6%

Question: E3 You mentioned you were aware of Universal Credit childcare costs support, but not currently using it. Why do not you use Universal Credit childcare costs support?

Base: All aware of UC Childcare but not using it in Group 2 - Working and not using UC Childcare (1,373), Group 3 - Not working and not using UC Childcare (559).

Around six in ten of Group 2 (63%) and Group 3 (57%) only have school-age children, so are likely to see themselves as less in need of formal childcare.

Claimants with more than one child are more likely to say they cannot afford to pay childcare fees upfront (30%, vs 22% with one child).

Claimants in Group 2 with only pre-school aged children are more likely to say they do not know enough about it (28%, vs 17% with only school aged children).

Characteristics of claimants who do not use UC Childcare

Reasons for not using UC Childcare among those who are aware of it vary according to claimant characteristics. The qualitative research was able to shed further light on this.

The proportion who said they did not use UC Childcare varied by claim type from 23% of joint claimants to 16% of single claimants. The qualitative strand showed that two-parent households have to juggle both working commitments, childcare and finances or that one parent may not work and be the main caregiver. The upfront cost of childcare is a key barrier to use.

The proportion of claimants who cited that “Childcare is too expensive, even with it [UC Childcare]” varied by how many children the claimant had, from 17% of those with one child to 22% of those with multiple children. Countering this slightly, the qualitative interviews showed that parents’ awareness and understanding of government support improves over time. Parents were more knowledgeable about childcare support schemes for subsequent children, which could make childcare more affordable.

Barriers to using UC Childcare varied by the age of the children. Parents of pre-school aged children (28%) were more likely than those of school-age children (17%) to say they “Do not know enough about it”. Parents of school-age children cite “do not need or want to use” childcare far more often (46%) than parents of preschool-age children (18%). An inability to use childcare is cited by 14% of parents with school-age children versus 7% of parents with preschool-age children. Qualitative research showed that parents saw childcare as being of less importance for older children and found it more difficult to find suitable, registered care for this age group.

Parents’ need for childcare varies depending on their working status. Those working part-time (40%) are more likely to report not needing or wanting to use formal childcare compared to full-time workers (32%). The qualitative work identified that this is because part-time workers can care for their children during their non-working hours, reducing their need for full-time formal childcare support.

Challenges with using childcare costs support schemes

Qualitative research showed that those using formal childcare but not claiming UC Childcare were using a free hours offer. However, this presented some challenges. Using solely the free hours limits the amount of childcare parents can use each week which in turn can restrict the number of hours parents work. Parents will often need to “top up” or work around their childcare arrangements to cover the free hours. The free hours schemes start at age 2 or 3 which further limits the ability of those wanting or needing to return to work sooner following the birth of their child.

The reimbursement model was a barrier to using UC Childcare, presenting significant challenges. Parents would find it difficult to find the money to pay fees upfront. This was considered even more challenging amongst those who are on low income or not working.

So many women like me, they do not have the level of saving, you know, do not have enough spare to pay [upfront], you know? They’re really struggling, they really rely on the amount when they get it, once they get it they have to pay the bills and everything. They do not have two, three, four, five hundred pounds to pay upfront.

Single claim, working part-time, formal and informal childcare (23)

Changes that would impact use

One in four claimants would consider using UC Childcare if they knew more about it, it was paid in advance, or it was easy to claim. However, a quarter also say they do not want or need to use formal childcare (Figure 33).

Figure 33: What would have to change about UC Childcare to make claimants interested in using it, by group

Change	Group 2	Group 3
Knowing more	26%	21%
Payment in advance	24%	23%
Easy to claim	24%	19%
Covered more costs	17%	16%
Nothing - do not need formal childcare	26%	17%
Nothing - not working for reasons other than childcare	2%	22%
Don’t know	18%	17%
None of these	8%	6%

Question: E6: What, if anything, would have to change about UC Childcare to make you interested in using it?

Base (unweighted): All who are not interested in UC Childcare in Group 2 - Working and not using UC Childcare (1,385), Group 3 - Not working and not using UC Childcare (2,066). Top answers shown only.
Parents of preschool children and those using formal childcare were more likely to mention “Knowing more” about the scheme as a change that would make them interested in using UC Childcare (Preschool only: Group 2 32%, Group 3 28%; Mixed age: Group 2 38%, Group 3 27%; vs 26%/21% overall; Formal childcare:(Group 2 36% vs 26% overall, Group 3 28%, vs 21% overall).

I’d need to know how much I’d receive and when so I could budget. I’d need to know it was a smooth process.

Joint claim, neither working, no childcare (42)

Figure 33 shows around a quarter of parents find the upfront costs of UC Childcare to be a barrier further illustrated in the qualitative findings:

I would say most people on benefits do not just have a big savings pot that they can just, you know, just chuck on childcare… It’s hard to save money as it is. So, yes, ideally, it would be paid upfront.

Joint claim, one working, mix of formal and informal childcare (13)

I’ve spoken to the Jobcentre and that about it though, they say, like, ‘Oh yes, we can give you 85% of your childcare,’ but I have to pay it first. Then it can take up to three months to get the money back, but I’m not in a position where I can afford to do that

Single claim, one working, mix of formal and informal childcare (20)

Interest in using the scheme among non-users

Over half of those in group 2 and four in ten of group 3 who were previously unaware of UC Childcare would be interested in using the scheme (Figure 34).

Figure 34: Interest in using the scheme now they know more, by group

Group 2: 54%

Group 3: 40%

Question E4: Now you are aware of Universal Credit childcare costs support, does this sound like something you would be interested in using?

Base (unweighted): All who were previously unaware of UC Childcare in Group 2 (2,560), Group 3 (2,950). Figures for ‘no’: G2 – 21%; G3 – 21%. Figures for ‘do not know’: G2 – 26%; G3 – 34%.

Interest in using the scheme is higher amongst parents of pre-school age children only (70%, 52%) or with a mix of pre-school and school age (68%, 48%) or parents using only formal childcare (75%, 52%).

Upfront costs as a barrier

Having to pay childcare costs upfront is one of the main reasons why claimants who are open to using formal childcare do not use UC Childcare. Amongst those not using the offer (Group 2 and Group 3) the main reason for doing so are the upfront costs (Group 2: 27%; Group 3: 33%).

However, the upfront costs do not put off those who are already interested in using the scheme. Amongst those who are interested in using the scheme, 7 in 10 are still interested once they find out about the upfront costs (Group 2: 77%; Group 3: 72%).

Among those who are not interested in the scheme, receiving payment in advance was cited around a quarter as a change to UC Childcare costs support which would help them to consider it (Group 2: 24%; Group 3: 23%).

The upfront payment is a risk some are not willing to take, and the design of the offer is not attractive enough to overcome the risk. Qualitative findings suggest that those with the lowest incomes cannot afford to pay for childcare initially and then be reimbursed, despite feeling the amount available is generous. The fear of accumulating debt and the preference for maintaining current, stable, albeit lower-paying, work situations deter parents from seeking or increasing work hours, even if it means missing out on higher earnings and more childcare support. Past experiences with delayed Universal Credit payments further fuel this anxiety, raising concerns about potential debt accumulation. The uncertainty surrounding the “up to 85%” reimbursement rate adds complexity, making it difficult for parents to calculate potential support and integrate it into their budgets. Some would use the scheme if it could be paid directly to the provider or to parents.

It’s the same as the one you get when you first take up Universal Credit, you have to take that loan to get you through the five weeks, but then you’re putting yourself in debt for a year or more to pay it back, so it’s not really helpful […] Realistically, who on benefits can afford to save £600 or more?

Single claim, not working, no childcare (34)

It seems madness if you want to get people back into work but the first month you’ve got to try and come up with this money yourself. If you’ve got no money, it’s a real barrier I think.

Single claim, working, formal childcare (30)

Case study: Affordability barriers to working and to using UC childcare

Who are they?

Two-parent household, with a 6 year old (primary school), and a 4 month old. The mother is currently on maternity leave but used to work in a nursery. The father of the 4 month old works full time for the civil service.

They describe their financial situation as fairly comfortable and their UC forms around a third of their total income. She is happy with her current situation (on maternity leave) but very dissatisfied with potential future arrangements and has decided not to go back to work as childcare is too expensive. She would prefer to go back to work full-time if she could afford to. She had looked into this in depth, considering a range of different roles and shift patterns, but they were always worse off financially (in the short term). She could go back to work when 30 hours kicked in, but said this would be a low-skilled job, with limited progression, due to the hours available that fit around childcare. She was therefore more likely to wait until her son was 6 or 7 to think about a career.

It’s silly. Whatever way I’ve done it, how can I be better off if I just don’t work at all? […] They’re telling people they want to help people get back to work […] but they don’t make it easy for you. Basically, you’re penalised for having children.

Joint claim, both working (mother on maternity leave), no childcare (2)

Confidence in efficacy of UC Childcare costs support

Over half of customers in Groups 2 and 3 think that UC Childcare costs support (UC Childcare) could help them move into work / work more hours (Figure 35).

Figure 35: Confidence that UC Childcare would help them move into work/work more hours

Group	A lot	A little	Not at all	Don’t know
Group 2	28%	24%	25%	23%
Group 3	34%	22%	22%	22%

Question E7: To what extent do you think Universal Credit childcare costs support would help you move into work / work more hours?

Base: All not currently receiving UC Childcare costs support: Group 2 - working and not using UC Childcare costs support (2,824), all Group 3 - not working and not using UC Childcare costs support (1,571)
Qualitative findings suggest that as Group 2 are in work, they are in a better position to see where UC Childcare could fit (but often they have arrangements in place other than formal childcare). Group 3 however need to find work before they can think about UC Childcare. They see UC Childcare as a helping hand once they’ve sorted work and childcare, rather than as a pull factor to encourage them into work.

I’ve tried to manipulate it to, kind of, keep us on an even keel and keep us in the same position that we are in now, and whatever way I do it, whether I go back two days a week, whether I go back doing my full-time hours, I am still a lot better off if I do not work.

Joint claim, one working, no childcare (maternity leave) (2)

Around a quarter (24%) of Group 3 are not interested in UC Childcare. Their reasons for not working do not relate to childcare. A proportion have children with additional challenges such as SEN, a health condition or a disability, and many have such challenges themselves (Figure 36).

Figure 36: Incidence of SEN and health conditions/disabilities among Group 3 claimants and their children

Condition of disability	Group 3	All claimants
Child(ren) with SEN, a health condition or disability	32%	22%
Parent(s) with a health condition or disability	40%	22%

Base: All respondents (12,910), Group 3 - not working and using UC Childcare costs support (4,029)

Qualitative findings suggest some parents did not want to use or could not find suitable childcare for children with health conditions or disabilities (particularly autism, anxiety or ADHD), and some parents’ work options were limited by their own health conditions or those of their partner.

Those who feel their capability to work is limited did not see the benefit of UC Childcare.

I’m not looking for work at the moment due to being a carer for my daughter. Her needs make it difficult to find a job as I need to be close by during the school day. I’m hoping this will change as she gets older and more independent.

Single claim, not working, no childcare (34)

User Experience of UC Childcare costs support

This chapter reports users’ satisfaction with the UC Childcare costs support offer, and suggestions for how the offer may be improved for parents.

Satisfaction with UC Childcare costs support (UC Childcare)

Those using the offer (Group 1) are most likely to be satisfied with their childcare arrangements (Figure 37).

Figure 37: Satisfaction with childcare arrangements by group

Satisfaction	Group 1	Group 2	Group 3
Net: Satisfied	79%	60%	46%
Net: Dissatisfied	9%	11%	12%

Question B5: How satisfied or dissatisfied are you with your current childcare arrangements?

Base (unweighted): All respondents (12,910), (G1 - Using UC Childcare costs support: 4,739; G2 - Working and not using UC Childcare costs support: 4,142; G3 - Not working and not using UC Childcare costs support: 4,029).
Respondents in Group 1 are more likely to have pre-school age only children, a characteristic which is also a factor influencing satisfaction with arrangements. The qualitative research found that this group had a much stronger motivation to work and saw this as being beneficial for themselves and their child.

Experiences of applying for and using UC Childcare

The qualitative research mapped the journey from the decision to use UC Childcare through the application process and experiences of using UC Childcare.

Deciding to use childcare

It was an easy decision for parents to use UC Childcare if they needed formal childcare. When parents knew about UC Childcare and knew that they needed it to fund their formal childcare, the decision to use it was fairly straightforward. Claimants saw it as ‘free support’. Some legacy WTC claimants were told about it at their first UC meeting and signed up straightaway.

Claimants had already decided they needed formal childcare and searched online for any financial assistance they were entitled to. For these claimants, UC Childcare was more of an added bonus than a pull factor.

Those who could speak to someone at DWP to explain the scheme and work out whether they would be better off in work or not had better experiences later on.

When I started looking into it and realised that, you know, the reason I wasn’t working those kind of hours was because I couldn’t afford the childcare, but, if I did work those hours, then I would be able to get help with the childcare, so it made sense.

Single claim, working, formal and informal childcare (39)

The application process

Applying is straightforward for most, but claimants did not always have a clear understanding of how the scheme will work in practice.

Most found applying easy, but on reflection felt they were not fully informed of how to use the scheme, such as uploading receipts; how much they are entitled to; how this might vary each month or if they changed their hours or how it related to their specific circumstances.

There were reports of having to wait for the first payment (sometimes up to 12 weeks) meaning parents were having to take UC loans, borrow money or use their credit card. Some reports of the total amount borrowed being up to £2,000. Some reported that it can be slow to get a response to questions through the journal.

You shouldn’t be putting people out of pocket, especially as the money is already there. A lot of people are desperate or short on money, so why are you making them pay for it first?

Single claim, working, formal and informal childcare (39)

Experiences of using UC Childcare

Parents experienced challenges when using UC Childcare.

As the UC payment is all in one, parents do not always know how much is for childcare and how much is for their living costs and find it hard to budget as a result.

The gap between having to pay the childcare provider and receiving the UC reimbursement influences parents’ experiences (depends on the day they need to pay the provider and when they get their UC payment). Those with a shorter gap found managing this easier. Others reported sometimes having to pay two months of nursery fees before receiving a reimbursement.

There were reports that it can be slow to get clarification through the journal.

If costs are the same each month, parents reported that it can be a bother to upload invoices monthly.

Thankfully my providers were really understanding and they knew that they’d get the money eventually. They just needed to give me that breathing space and they afforded me that, thankfully. But some providers aren’t so forthcoming and people would lose childcare places.

Single claim, working, formal and informal childcare (21)

Improving the childcare offer for parents

Ofsted registration requirements

Attitudes to Ofsted registration vary depending on the age of the child and parents working hours. On the whole, the requirement to use Ofsted registered childcare was not a large barrier to using childcare, for parents of pre-school children. However, relaxing it would enable parents to use UC Childcare to pay for different types of out of school activities.

Parents of pre-school children tended to view Ofsted registration as an essential quality marker. It was however less salient for parents of older children who get wraparound care at school (if they are using formal childcare at all).

The flexibility to use non-registered providers appeals to parents who have a friend/relative they could pay to look after their child. Parents were unwilling to pay someone they did not know who was not Ofsted registered. It was seen as too risky.

Being able to use non-registered childcare would enable parents to use UC Childcare to pay for extra-curricular activities such as music, dance and horse-riding.

One lone parent working nights was using a nanny as this was the most cost effective and easiest way for her to get childcare for her four children. A non-registered nanny was cheaper, but she could not use UC Childcare to pay for this. As such, using a more expensive, Ofsted registered nanny worked out cheaper, after claiming UC Childcare.

Parents views on areas of UC Childcare that could be improved

Parents saw opportunities for two changes to the UC Childcare funding model: reimbursement and proportion of childcare which can be claimed for. Parents who wanted to work more felt that changes to the UC reimbursement model and how much could be claimed would support this, by enabling them to use more formal childcare.

Reimbursement model

It was important for parents to know how much money they would get from UC Childcare to be able to budget.

Participants, both those currently using UC Childcare and not, expressed a strong preference for upfront payment. They felt this would remove the stress associated with having the money to pay for their childcare upfront.

There was a suggestion of government funding for nursery deposit, with parallels drawn to the Lifetime ISA scheme.

What can be claimed

Parents recognised that getting 85% of their childcare costs reimbursed is good, however, covering 100% of childcare costs would enable them to use more childcare and work more.

Those in more expensive areas (e.g. London) felt a higher cap was needed to cover their childcare costs.

Parents also wanted financial support for other parts of childcare e.g. school uniform.

Access to flexible working

Flexible working is seen as essential to supporting parents to work, but it is not available to all.

Regardless of their approach to childcare, parents need some form of flexibility from work. They spoke of restrictions on when they could start (around school hours or availability of formal/informal childcare), and needing to leave work on time to collect/meet children.

Many claimants (and their partner if they had one) mentioned working particular shifts so one parent was always with the child(ren).

In terms of current practice, there was strong evidence of flexible working to accommodate childcare being offered by employers and/or requested by participants.  However, there were also examples of flexible working being offered but not delivered. There is a belief that flexible working is available in particular types of jobs and a belief, or experience, that flexible working is not open to all. Participants in certain job types reported structural barriers to flexible working. For example, set shift patterns which are not flexible and/or long shifts (12 hours). Care, retail, hospitality and manufacturing were all cited as sectors with limited flexibility.

Greater childcare availability

Increased childcare availability outside standard hours could offer some parents the flexibility to work longer or different shifts, potentially accepting jobs further away. However, several barriers prevent parents from using such extended childcare options.  These barriers fall into three main categories: work-related, emotional, and practical.

Work-related barriers centre on the financial value of working more. Some parents may find that the increased earnings do not outweigh the additional childcare costs or do not want to work evenings or weekends.

Emotional barriers play a significant role. When considering whether to work outside of school hours, evenings or weekends there are parents for whom this has an emotional cost of not spending the time with their children, which the increased income does not outweigh. Many parents prioritize spending evenings with their children and are reluctant to extend their children’s time in childcare, especially past their bedtime. A preference for informal childcare arrangements with family or friends during evenings and weekends.

Practical barriers further complicate matters. Assumptions about the high cost and limited availability of childcare outside standard hours deter some parents from exploring these options. The existing shortage of childcare during core hours reinforces this perception, with parents feeling that this issue needs to be addressed before considering extended hours.

Conclusions

When it comes to work, childcare is the biggest barrier parents claiming UC face – particularly among those with pre-school aged children. On the whole there is a will to work among claimants, with the majority believing that by working they are being a good role model for their children, and that they are happier and more fulfilled in work.

However, parents are facing a balancing act, piecing together work, childcare, personal circumstances, and their finances. This is hardest for parents with younger children. They need more care, which is more expensive, harder to fit around work, and parents want to spend time with them while they are young.

Encouraging uptake

The primary way to encourage more parents to utilise UC Childcare is to tell them about it. Lack of awareness was by far the largest reason for not taking it up even among those already using formal childcare. There is a clear gap between those using formal childcare and aware of UC Childcare.

Among those who were aware of UC Childcare, less than half of parents said they found it easy to understand.

Once the survey had made them aware of it, around half of parents not claiming UC Childcare said they would be interested in using it. This suggests that better communication about the offer would increase take-up considerably.

Beyond awareness, the upfront costs of childcare are the biggest barrier to uptake. Many simply do not have the money to pay the first invoice themselves then have to wait for reimbursement. The option to take out a loan to cover it does not appeal to them. Payment in advance, or direct to the childcare provider, would encourage uptake of UC Childcare costs support.

Parents who feel that support with childcare costs is not relevant or helpful to them include parents of school-aged children, particularly those who use wraparound care at schools. Those who feel their capability to work is limited, either because of their own health or additional caring responsibilities, also did not see the benefit of UC Childcare. They had other reasons for not working that extra childcare would not resolve.

Improving UC Childcare for users

Parents who were using UC Childcare were broadly satisfied with their childcare arrangements. However, they felt some elements of the system could be improved to help them further.

As mentioned, the UC Childcare reimbursement model was highlighted as an issue for people using it, as it was often hard to know exactly how much money they would receive each month and how to allocate it. One parent highlighted that wrapping the UC Childcare costs support payment it in with their UC payment made it difficult to know how much of the payment was for childcare and how much was for the household spending.

Whilst parents recognised that having 85% of costs covered was good, those in more expensive areas (such as London) felt it would be helpful if the cap were higher.

Support could be considered for other childcare costs, such as uniforms.

The requirement to use an Ofsted-registered provider was understood, however for those with school-aged children they felt it limited the type of care they could use – for example, enrichment, after school interest-based clubs could not be used because UC Childcare would not contribute to the cost. Addressing this could help to open up a wider range of enrichment activities to children whose parents claim Universal Credit.

Increasing impacts on work

The majority of parents claiming UC Childcare agree it has helped them either move into work or to work more hours. Around half of those who do not claim it said they were confident it would help them to do so.

However, when some do the maths, they feel they are better off financially by keeping to part-time hours (even if they would like to work more). They have to think about the impact of working more on their UC claim, as well as the cost of childcare.

Appendix 1: CHAID analysis

CHAID Analysis was run to understand the significant differences between those using the scheme and not.

CHAID analysis is used for discovering relationships between a response variable and other predictor or target variables. It looks for patterns to understand which variables are significant in influencing a specific outcome.

In our case, ‘Using UC Childcare costs support’ was the outcome (dependent variable) we wanted to understand more. 

The technique takes data from a sample and looks for distinct groups, according to their responses to independent variables to profile the outcome (dependent variable). The analysis has the ability to take a group of variables and select the one that offers most discrimination – e.g. multiple responses can be merged into one if there is no difference between their relationship to the outcome.

The output on the next page determines how variables interact to explain the outcome.

The first level is the best predictor of the outcome variable.

The CHAID shows the differentiation on the dependent variable between different subgroups. The percentages show the proportion of respondents who associate with the dependent variable. So the first level does not show the proportions who do / not use UC Childcare. It shows the proportion within those using formal childcare who also use UC Childcare. So 21% of those who use formal childcare also use UC Childcare, rather than 21% of those using UC Childcare also using formal childcare.

1. Base (unweighted): All respondents (12,910), Group 1 - Using UC Childcare (4,739), Group 2 - Working and not using UC Childcare (4,142), Group 3: Not working and not using UC Childcare (4,029) ↩

2. Base (unweighted): All respondents (12,910), Group 1 - Using UC Childcare (4,739), Group 2 - Working and not using UC Childcare (4,142), Group 3: Not working and not using UC Childcare (4,029) ↩

3. Further detail on the methodology is provided in the Appendix ↩