News

In an effort to encourage and make it easier for parents to get back into work after having children, and for those claiming Universal Credits to return to work, there were a few welcome announcements:

Childcare (England only)

• From April 2024, working parents will be able to access 15 hours of free childcare per week for 2 year olds
• From September 2024, this will be extended to parents of children of 9 months to 2 years old
• From September 2025, the 15 hours will be increased to 30 hours, so working parents will be able to access 30 hours of free childcare a week for children over 9 months old

Universal Credits

• The amount of childcare costs reclaimable through Universal Credit will increase to £951 (from £646) for one child and £1,630 (from £1,108) for two children from July 2023
• The Severe Disability Premium will increase in line with CPI from 2023/24 onwards
• The Work Capability Assessment is being abolished and the eligibility for the health top up will be based on whether the claimant received Personal Independent Payments (PIPs)

Foster and Shared Lives Carers

Foster and Shared Lives Carers will also welcome the news of increased payments from April 2023, which will help them greatly with the increased costs of living.

• The Income Tax allowance for Foster Carers and Shared Lives Carers will increase from £10,000 to £18,140 per year from 2023/24
• The amount they can receive per child tax free will also increase to £375 or £450 per week per individual cared for (depending on age), from 2023/24

If you have any queries regarding any of the above, please contact one of our Tax Specialists on 01228 711888.