Working parents should be helped with childcare costs by raising the cap on what they can claim back under Universal Credit, local government leaders have said.
The Local Government Association (LGA) says figures suggest only 13% of those eligible are claiming support.
It is calling for the cap on claiming for childcare costs, which has remained the same since 2005 despite the cost of childcare soaring, to be increased in line with inflation in this week’s Spring Budget.
The association says recent research has found that in almost all areas the average price of a full-time nursery place for a child under two is higher than the maximum costs supported through Universal Credit and the benefits system.
Latest figures also suggest over 713,500 eligible earning parents from a total of 823,600 who receive Universal Credit are not even claiming for childcare costs.
Chair of the LGA’s children and young people board Louise Gittins said: ‘The cap on childcare support for working parents receiving benefits has not changed in almost 20 years, while childcare costs have more than doubled during that time.
‘We feel it would be only fair and right for the cap to be increased in line with inflation in next week’s budget.’
