A parent receiving Universal Credit has raised a crucial question facing many working families: will the government still help with nursery fees if they leave their job?
The Universal Credit Dilemma
The claimant, who works part-time in the childcare sector, uses Universal Credit payments from the Department for Work and Pensions to top up their wages. They currently receive help with housing costs living in a housing association property and crucially, benefit from the 85% childcare cost support available to working claimants.
Facing potential dismissal from their position, the parent is considering resigning first. They revealed they've been placed on a performance development plan despite receiving no formal warnings and recently receiving an ADHD diagnosis.
Mental Health Struggles and Work Pressures
The situation has taken a significant toll on their mental health. "I'm struggling mentally with work, and looks like I'll be fired next week if I don't hand my notice in myself beforehand," the parent shared on a Reddit forum seeking advice.
They've since been signed off sick by their GP and have contacted Universal Credit through their online journal to understand their options. Their employer has postponed a meeting that could lead to dismissal and instead offered a welfare meeting.
Notably, the parent states that no workplace adjustments have been made following their ADHD diagnosis, and they haven't received an occupational health assessment. They've also been advised to seek an assessment for Autism Spectrum Disorder (ASD).
What Happens to Childcare Support?
According to official government guidance, the rules around childcare cost support are clear. The DWP states that Universal Credit can pay up to 85% of childcare costs specifically when claimants are working and require childcare to enable that work.
This presents a significant problem for parents considering leaving employment. As one Reddit user pointed out: "No, if you're not working you can't qualify for childcare costs."
Other commenters warned about potential sanctions for leaving work voluntarily. "You can be sanctioned for leaving (or losing) a job without good reason," advised one respondent, while another recommended: "You'd be better off going on sick leave and reporting the health change to UC."
The parent's concerns highlight the difficult calculations many low-income families must make when balancing work, health, and caring responsibilities within the benefits system.
