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PART 2CONDITIONS OF ENTITLEMENT

Child care element

Entitlement to child care element of working tax credit

13.—(1) The determination of the maximum rate must include a child care element where that person, or in the case of a joint claim at least one of those persons, is incurring relevant child care charges and—

(a)is a person, not being a member of a married or unmarried couple, engaged in remunerative work; or

(b)is a member or are members of a married or unmarried couple where—

(i)both are engaged in remunerative work; or

(ii)one member is engaged in remunerative work and the other is incapacitated.

(2) For the purposes of paragraph (1) a person is not treated as incurring relevant child care charges where the average weekly charge calculated in accordance with regulation 15 is nil or where an agreement within regulation 15(4) has not yet commenced.

(3) A person is not engaged in remunerative work for the purposes of paragraph (1) where that person is treated as being in remunerative work by virtue only of either—

(a)regulation 5, or

(b)paragraph (1) of regulation 7 in circumstances where the absence from work arises from the need to care for a recently adopted child or from the acquisition of a surrogate child,

unless immediately prior to the adoption of the child, the granting of the parental order for the surrogate child or the birth of the child (as the case may be) that person was responsible for another child.

(4) For the purposes of paragraph (1)(b)(ii) the other member of a couple is incapacitated in any of the circumstances specified in paragraphs (5) to (8).

(5) The circumstances specified in this paragraph are where either council tax benefit or housing benefit is payable under Part 7 of the Contributions and Benefits Act to the other member or his partner and the applicable amount of the person entitled to the benefit includes—

(a)a disability premium; or

(b)a higher pensioner premium by virtue of the satisfaction of—

(i)in the case of council tax benefit, paragraph 11(2)(b) of Schedule 1 to the Council Tax Benefit (General) Regulations 1992(1);

(ii)in the case of housing benefit, paragraph 10(2)(b) of Schedule 2 to the Housing Benefit (General) Regulations 1987(2),

on account of the other member’s incapacity or either regulation 13A(1)(c) of Council Tax Benefit (General) Regulations 1992 (treatment of child care charges)(3) or, as the case may be, regulation 21A(1)(c) of the Housing Benefit (General) Regulations 1987 (treatment of child care charges)(4) applies in that person’s case;

(6) The circumstances specified in this paragraph are where there is payable in respect of him one or more of the following pensions or allowances—

(a)short-term incapacity benefit under section 30A of the Contributions and Benefits Act(5);

(b)long term incapacity benefit under section 40 or 41 of the Contributions and Benefits Act(6);

(c)attendance allowance under section 64 of that Act;

(d)severe disablement allowance under section 68 of that Act;

(e)disability living allowance under section 71 of that Act;

(f)increase of disablement pension under section 104 of that Act;

(g)a pension increase under a war pension scheme or an industrial injuries scheme which is analogous to an allowance or increase of disablement pension under sub-paragraph (b), (d) or (e) above.

(7) The circumstances specified in this paragraph are where a pension or allowance to which sub-paragraph (b), (d), (e) or (f) of paragraph (6) refers, was payable on account of his incapacity but has ceased to be payable only in consequence of his becoming a patient.

(8) The circumstances specified in this paragraph are where he has an invalid carriage or other vehicle provided to him under section 5(2)(a) of and Schedule 2 to the National Health Service Act 1977(7), section 46 of the National Health Service (Scotland) Act 1978(8); or Article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972(9).

(3)

Regulation 46A was inserted by regulation 2 of S.I. 1994/1924.

(4)

Regulation 21A was inserted by regulation 5 of S.I. 1994/1924.

(5)

Section 30A was inserted by section 1(1) of the Social Security (Incapacity for Work) Act 1994 (c. 18) and amended by section 64 of the Welfare Reform and Pensions Act 1999 (c. 30).

(6)

Sections 40 and 41 were substituted by paragraphs 8 and 9 respectively of Schedule 1 to the Social Security (Incapacity for Work) Act 1994. Section 41(5) was further amended by paragraph 21(4) of Schedule 4 to the Pensions Act 1995.