Fresh hope for half a million on Universal Credit over ‘unfair’ childcare rules
A SINGLE mum is seeking permission to take her fight against unfair childcare costs to the Supreme Court.
It gives fresh hope for half a million working parents on Universal Credit who must fork out for nursery and childminders and claim the cash back later.
Sun columnist Nichola Salvato, 49, took the government to court after getting into £2,000 worth of debt trying to pay for childcare.
The single mum from Brighton won a landmark court case in January arguing that childcare costs should be paid for upfront.
Working parents on Universal Credit can claim up to 85% of childcare costs worth £648 for one child and up to £1,108 for two children.
But parents can't claim the money without proof of payment. The cash is also paid in arrears, putting even more pressure on hard-up households.
The government appealed the High Courts decision and it was overturned last week a the Court of Appeal.
Now Nichola has said she will fight the decision and ask the Supreme Court to look at the case
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She said: "Although I’m very disappointed that the Court of Appeal did not uphold the High Court ruling, I am hopeful that that the Supreme Court will address the issue.
"So many of us single parents want to work but find the upfront childcare costs through Universal Credit an impossible barrier, meanwhile the government continues to support better off families with their childcare costs in advance via the tax-free childcare system.
"The system is clearly discriminatory, and the Court of Appeal agrees that it is discriminatory, but has said the government is entitled to discriminate unless I can show that there is an easy and better way.
She will argue that Appeal Court judges were wrong to reject the original ruling.
She added: "I don’t think that is correct and I will continue my fight to get our voices heard.
"Affordable, accessible childcare support is fundamental to our infrastructure if the government want to achieve higher levels of employment among single mums and reduce child poverty."
The Sun has called for changes to Universal Credit so that people are not punished for having a family in the Make Universal Credit Work campaign.
And others have been forced to go into debt, while Citizens Advice has said the unfair rules make it harder for parents to get back to work.
We recently heard from a mum of two who can't afford to stump up the first months childcare costs to get back to work.
The initial ruling was expected to set a precedent for half a million other working parents on benefits who can't afford to stump up the cash to pay for nursery or childminder fees.
"Deeply disappointing"
The high court had earlier this year branded the "proof of payment" rule as unlawful and said it discriminates against working mums.
It concluded the rule "ultimately makes them more dependent on benefits" if parents feel they need to cut back on working hours in order to afford childcare.
The DWP had argued removing the need to prove childcare fees would open the system up to fraud.
In July the case went to the court of appeal and the ruling, published last week, found that while the "proof of payment" rule does indirectly discriminate, it is justifiable and not irrational.
Lady justice Andrews said: "The threshold for irrationality is a high one, and in my judgement the challenge fell short of meeting it by some margin."
She said the rule "fits within the overall scheme of Universal Credit as a benefit to be paid in arrears, akin to a salary, supplementing income from work" and "plainly has a rational justification".
To appeal a Court of Appeal judgment, someone must get permission from the Supreme Court, which is where the case is then heard.
Carolin Ott, Nichola's solicitor at Leigh Day, said: “Our client believes that the current system of childcare payments to parents who claim Universal Credit is causing great hardship to many others besides her and for that reason her application for permission to appeal to the Supreme Court is of great public importance."
"She believes that it should be for the Secretary of State to show why an alternative measure requiring an invoice rather than a receipt cannot be used in circumstances where requiring proof of payment is discriminatory.
"It is hoped that Nichola’s case, and that of thousands of other parents, can be made at the Supreme Court.”
Nichola's legal challenge is supported by Save the Children, Gingerbread, the Professional Association for Childcare and Early Years (PACEY) and the National Day Nurseries Association (NDNA).
The charities called last week's decision "deeply disappointing".
A DWP spokesperson previously said: "We welcome this judgment.
"The Universal Credit system reimburses claimants for up to 85% of childcare costs, which is significantly more generous than the previous benefits system.
“We have introduced a comprehensive support package for working parents, including the Flexible Support Fund which can offer further childcare support for those starting work, and our £500m Household Support Fund is helping families who need further support to pay for the essentials this winter."
"Stuck in a cycle of debt"
Nicola regularly writes a column for us answering readers' questions on Universal Credit.
In 2018, she ended up getting into thousands of pounds worth of debt trying to cover the cost of childcare over the summer holidays.
She incurred late fees on household bills and took unpaid leave from work as a full-time welfare rights adviser for a housing association to look after her daughter.
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The single-mum was forced into a "cycle of debt", owing £2,000 to family and doorstep lenders.
She felt she was left with no other choice but to reduce her hours from 32 hours a week to 24.5 hours in order to cut down her childcare costs.
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