Adviser Summary – [2026] UKUT 58 (AAC)
Judge: Wikeley
Decision date: 5 February 2026
Issue: Universal Credit – Childcare Costs Element (CCE)
Case reference: UA‑2025‑000643‑UCC
What the case was about
The appeal dealt with how entitlement to the childcare costs element should be assessed when a claimant makes two childcare payments in the same Assessment Period (AP).
The claimant had two separate monthly childcare invoices that were both paid within a single AP. The DWP refused part of the CCE on the basis that only “costs paid in the assessment period” were allowable, arguing that the rules were intended to reflect a single month’s childcare.
Key Upper Tribunal findings
1. The regulations do not restrict claimants to one childcare payment per AP
Judge Wikeley confirmed that the Universal Credit rules only require that the payment is “paid in the assessment period”—there is no requirement that it must relate to childcare used only within that same AP, nor any rule limiting claimants to one payment per period.
2. Multiple payments in the same AP must be considered
If the claimant pays childcare charges twice in the same AP (e.g., due to billing cycles or late invoices), both payments must be counted when calculating the childcare element—provided they are genuine, evidenced childcare payments.
3. The DWP approach was too restrictive
The DWP had wrongly imposed an interpretation that did not appear in the legislation. The UT made clear that policy intention cannot override the actual wording of the regulations.
4. The case was remitted for reconsideration
The First‑tier Tribunal needed to look properly at both childcare payments, assess the evidence, and recalculate entitlement accordingly.
Practical takeaways for advisers
✓ Two payments in one AP? Both can be included.
If a client pays two childcare invoices in one AP—whether due to provider practices, holidays, or delays—the UC calculation must include both, as long as:
- they were paid within the AP, and
- proper evidence is provided.
✓ The payment date is the key factor
The UT reinforces that the date the claimant actually pays is what counts—not the date the childcare was used.
✓ Challenge UC decisions that reject “extra” childcare payments
If DWP refuses part of the CCE because they think a claimant “paid too much” or paid for “two months at once”, this case provides strong grounds for MR/appeal.
✓ Still need: real payments + receipts/invoices
The payment must be real, verifiable, and related to childcare. Advisers should ensure clients keep good records.
Key Message
If two childcare payments are made within the same AP, both must be included in the UC calculation. This decision gives advisers solid authority to challenge under‑payments where DWP have applied an overly narrow interpretation of the CCE rules.
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