OVER 200 families in York are being forced into debt as a result of having to pay childcare fees upfront, according to new Government figures.

The latest research by the Department of Work and Pensions shows that the number of families in York being forced into debt as a result of having to pay up childcare fees upfront, under the new Universal Credit system, has increased from 63 in 2018 to 213 in 2019 - an increase of 234 per cent.

Under the new system, universal credit scraps the help low-income families currently claim in advance for childcare bills – forcing parents to pay fees upfront, and claim the money back after.

Research by the charity, Save the Children, also found that the average upfront costs for the first month of childcare across Yorkshire, has risen slightly in the last year, with the with the average monthly cost of fulltime childcare for a one-year-old in the region now at £896.

They added that these costs are forcing families into ‘childcare debt’ and will block them from going back to work unless the government makes urgent changes.

Martha Mackenzie, Save the Children’s Director of UK Poverty Policy, Advocacy and Campaigns said:

“Half of low-income families have no savings, and a quarter already face problem debt. These costs can push them even closer to the brink, forcing them into debt to pay for childcare, or stopping them from going back to work. This defeats the whole purpose of the system.”

“Instead of setting families up to struggle, the government must change the system so that parents can claim their childcare entitlement in advance. This will help parents go back to work and provide a better future for their children.”

Universal Credit brings together six means-tested benefits into a single, monthly payment for low-income households. Under the current system, parents can only make a claim for help with childcare costs in advance of paying nursery bills.

However, Save the Children is calling for parents on Universal Credit to get the same help.

Mrs Mackenzie said: “Hundreds of thousands of families are set to start claiming childcare benefits through Universal Credit in the next few years. It’s vital that the government makes changes to how childcare benefits are paid now, before the number of families in trouble spirals out of control

MP for York Central, Rachael Maskell said: "In his report released this week, Philip Alston said that the UK's social safety net has been 'deliberately removed and replaced with a harsh and uncaring ethos'. This system is hard hitting on single parents especially and is pushing people further into poverty.

"Figures now show 1.5 million people in our country are living on £10 a day. It is a complete disgrace and I urge the government to reconsider this system."

A DWP spokesperson said:“Childcare costs shouldn’t be a barrier to getting into work and with Universal Credit working parents can get help with up-front childcare costs through the Flexible Support Fund, and claim 85 per cent of eligible childcare costs back. This is as well as the up to 30 hours of free childcare available to parents of 3 and 4 year olds.

“We are also trialling an approach to give people more flexibility when reporting childcare costs late.”