The Department for Work and Pensions (DWP) is paying an extra £522 to thousands of families on Universal Credit this week.
This is because the maximum childcare payments for families claiming the benefit are set to increase by 50 percent from Wednesday, June 28.
The DWP is making a huge rule change to Universal Credit so that working parents get more assistance.
The new rules will allow people to claim up to £1,630 every month.
The increase is worth a total of £900million across the UK.
Families with one child will be able to claim £951, up from £646, while those with two or more will be able to claim £1,630, up from £1,108.
Eligible parents who return to work or significantly increase their hours will be able to get up to 85 percent of their childcare costs back before their next month’s bills are due.
This means they can use that money to pay one month in advance going forward.
Mel Stride, Secretary of State for Work and Pensions, said: “These changes will help thousands of parents progress their career without compromising the quality of the care that their children receive.
“By helping more parents to re-enter and progress in work, we will be able to cut inactivity and help grow the economy.”
Prior to the rule change, families have had to pay upfront for childcare costs which has added further pressure to families on low incomes.
But the new changes mean most of the initial childcare bill is paid back straight away by the Government, giving parents cash in their accounts to pay for the following month in advance.
Additionally, Claire Coutinho minister for Children, Families and Wellbeing said: “Childcare shouldn’t be a barrier to work, but the expense has previously meant parents have had to choose between working or looking after their child.
“We are supporting families with the largest-ever expansion of free childcare, making sure that places will be available for parents who need them.”