Universal Credit recipients to get HUNDREDS of pounds more in free cash

Eligible families will be able to claim back up to £951 for one child and £1,630 for two or more children.

The increase represents a 47 per cent hike from the previous caps of £646 for one child or £1,108 for two or more children.

Some Britons will also have childcare payments covered upfront for the first month if they become employed or increase their number of working hours.

The move is considered as part of the Government’s plan to help those struggling to take on a job or in debt.

Eligible parents will later receive up to 85 per cent of the childcare costs back before bills are due the following month.

The benefits system underwent a shake-up in March when Chancellor Jeremy Hunt unveiled his Budget.

Hunt, who replaced Kwasi Kwarteng in Number 11 after last autumn’s disastrous mini-budget, also announced an expansion of childcare.

The Chancellor revealed every child from nine months old to school age will get 30 hours of free childcare per week by September 2025 if their parents work at least 16 hours.

Minister for Children, Families and Wellbeing Claire Coutinho 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.

“This will save a working parent using 30 hours a week an average of £6,500.

"We have already announced plans to boost the amount Government pays childcare providers, and now we're knocking down barriers to recruiting and retaining the talented staff that provide such wonderful care for our children."

However, Labour condemned the plan which was accompanied by consultation with the Department for Education.

Shadow Education Minister Helen Hayes said: "The Conservatives are piling pressure on a broken system.

“Their plans come with no plan to increase the workforce, who are so critical to delivering an expansion of childcare.

"What parents and children both need is higher standards, better availability across our country, and a flexible system that supports families from the end of parental leave to the end of primary school.

"Labour has set out clear plans for fully funded breakfast clubs for every child in every primary school in England which can be delivered and will not leave parents scrambling to find provision."