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Childcare support has seen significant upgrades. If you are on Universal Credit, you could now be eligible for more support than ever before – covering up to 85% of your costs.
At Kids Planet, we want to ensure every family accesses the funding they deserve. With the full rollout of the 30-hour offer and major policy changes this year, the financial landscape for parents has been transformed.
If you are reading this before April 6, 2026, you are currently under the 2025/26 tax year rules. The maximum monthly refund is currently £1,031.88 (one child) and £1,768.94 (two or more children), and the two-child limit still applies.
From April 6, 2026: The new, higher rates take effect (shown below), and the government is officially scrapping the two-child limit for childcare costs!
£1,071.09
Max monthly refund (From April 2026)
£1,836.16
Max monthly refund (From April 2026)
A landmark change for the 2026/27 tax year is the scrapping of the two-child limit for childcare costs. Previously, families with three or more children were capped at the same rate as those with two. Now, the limit on what can be reimbursed increases by £736.06 per month for each additional child. This ensures that larger families aren’t penalised for working more hours.
The government childcare expansion is now fully complete. Eligible working parents of children from 9 months to 4 years old can access 30 hours of funded childcare per week.
Can you use both? Yes. You use your funded hours first, and then claim 85% of any remaining costs (such as extra hours, wraparound care, or meals) back through your Universal Credit account.
A common barrier for parents is the need to pay nursery fees before claiming them back. If you are starting a new job or significantly increasing your hours, you don’t always have to pay the first month’s fees yourself.
Through the Flexible Support Fund, your Jobcentre work coach can often arrange for your first month’s childcare to be paid directly to the nursery upfront, removing the biggest barrier to getting back to work.
We make using Universal Credit simple for our parents. Once you’ve secured a place at your local nursery, follow these three steps:
Funding can be complex, but our Nursery Managers deal with Universal Credit claims every day. Book a visit to discuss your specific needs with us.
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