The Universal Credit (Childcare Costs) (Amendment) Regulations (Northern Ireland) 2021

Explanatory Note

(This note is not part of the Regulations)

Regulation 2 of these Regulations amends the Universal Credit Regulations (Northern Ireland) 2016 (S.R 2016 No. 216) (“the Universal Credit Regulations”) in response to the continuing outbreak of the Coronavirus disease in Northern Ireland and the affect that the outbreak has on those who are unemployed and are unable to return or remain in employment due to the non-affordability of childcare costs.

For many parents, childcare is essential to support their return to work and their progression in work. Within Universal Credit, support for childcare is provided in the form of an additional childcare element. The element is to be available to all lone parents and couples where both members are in work (with certain exceptions), and is not dependent on a claimant working a specific number of hours. Where a child is in registered childcare, families are able to recover 85% of actual childcare costs in Universal Credit up to a limit set in the regulations.

Regulation 35 of the Universal Credit Regulations includes provision for the calculation of the amount of the childcare costs element. Where the Department provides non-repayable financial support under the Adviser Discretion Fund for upfront childcare costs, the amount provided is deducted from the person’s Universal Credit account which has an adverse impact on the calculation of the childcare costs element.

Regulation 2 of these regulations amends Regulation 35 to ensure that an Adviser Discretion Fund payment for upfront childcare costs is included in a person’s account when calculating the childcare costs element of Universal Credit.