PART 2 CONDITIONS OF ENTITLEMENT
Child care element
Entitlement to child care element of working tax credit13
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—
F1b
is a member or are members of a F28... couple where both are engaged in qualifying remunerative work; or
c
is a member or are members of a F28... couple where one is engaged in qualifying remunerative work and the other—
i
is incapacitated;
ii
is an in-patient in hospital; or
iii
is in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence).
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.
F183
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F34
For the purposes of paragraph (1)(c)(I) 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
ii
on account of the other member’s incapacity or either F30regulation 13A(1)(c) of Council Tax Benefit (General) Regulations 1992F30regulation 18(1)(c) of the Council Tax Benefit Regulations 2006 (treatment of child care charges) M3 or, as the case may be, F31regulation 21A(1)(c) of the Housing Benefit (General) Regulations 1987F31regulation 28(1)(c) of the Housing Benefit Regulations 2006 (treatment of child care charges) M4 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
b
long term incapacity benefit under section 40 or 41 of the Contributions and Benefits Act M6;
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.
F51h
contributory employment and support allowance where entitlement to that allowance or statutory sick pay has existed for a period of 28 weeks comprising one continuous period or two or more periods which are linked together provided that, if the person received statutory sick pay, the person satisfied the first and second contribution conditions set out in paragraphs 1 and 2 of Schedule 1 to the Welfare Reform Act.
7
The circumstances specified in this paragraph are where a pension or allowance to which sub-paragraph F5(c), (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 M7, section 46 of the National Health Service (Scotland) Act 1978 M8; or Article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972 M9.
C2C114
1
F8Subject to paragraph (1A), for the purposes of section 12 of the Act charges incurred for child care are charges paid by the person, or in the case of a joint claim, by either or both of the persons, for child care provided for any child for whom the person, or at least one of the persons, is responsible F19within the meaning of regulation 3 of the Child Tax Credit Regulations 2002.
In these Regulations, such charges are called “relevant child care charges”.
F61A
Child care charges do not include charges in respect of care provided by
F27a
a relative of the child, wholly or mainly in the child’s home, or
b
a provider mentioned in regulation 14(2)(e)(ia), in circumstances where the care is excluded from being qualifying child care by Article 5(2)(c) of the Tax Credits (Approval of Child Care Providers) Scheme 2005.
F36c
a provider mentioned in regulation 14(2)(c)(v), in circumstances where the care is excluded from being qualifying child care by Article 4(2)(c) of the Tax Credits (Approval of Home Child Care Providers) Scheme (Northern Ireland) 2006.
F37d
a provider mentioned in regulation 14(2)(f)(ii), in circumstances where the care is excluded from being qualifying child care by Article 5(3)(d) of the Tax Credits (Approval of Child Care Providers) (Wales) Scheme 2007.
F61B
For the purposes of this regulation—
a
“relative” means parent, grandparent, aunt, uncle, brother or sister whether by blood, half blood, marriageF29, civil partnership or affinity;
b
“the child’s home” means the home of the person, or in the case of a joint claim of either or both of the persons, responsible for the child.
2
“Child care” means care provided for a child—
a
in England F40...—
i
by persons registered under Part 10A of the Children Act 1989 M10;
F47ii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F46iia
by a person registered under Part 3 of the Childcare Act 2006;
F48iii
in respect of any period on or before the last day the child is treated as a child for the purpose of this regulation by or under the direction of the proprietor of a school on the school premises (subject to subsection 2(B));
F21v
by a foster parent under the Fostering Services Regulations 2002 F44... in relation to a child other than one whom he is fostering;
F41vi
by a child care provider approved in accordance with the Tax Credits (Approval of Child Care Providers) Scheme 2005; F49or
vii
by a domiciliary care worker under the Domiciliary Care Agencies Regulations 2002;F50...
F50viii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
in Scotland—
i
F34ia
by a child care agency where the service consists of or includes supplying, or introducing to persons who use the service, child carers within the meaning of sections 2(7) and (8) of the Regulation of Care (Scotland) Act 2001; or
ii
by a local authority in circumstances where the care service provided by the local authority consists of child minding or of day care of children within the meaning of section 2 of the Regulation of Care (Scotland) Act 2001 and is registered under Part 2 of that Act; F22or
F23iii
by a foster carer under the Fostering of Children (Scotland) Regulations 1996 in relation to a child other than one whom he is fostering;
c
in Northern Ireland—
ii
by institutions and establishments exempt from registration under that Part by virtue of Article 121 of that Order; or
F25iii
in respect of any period ending on or before the day on which he ceases to be a child for the purposes of this regulation, where the care is provided out of school hours by a school on school premises or by an Education and Library Board or a Health and Social Services Trust; or
iv
by a foster parent under the Foster Placement (Children) Regulations (Northern Ireland) 1996 in relation to a child other than one whom he is fostering; or
F35v
by a child care provider approved in accordance with the Tax Credits (Approval of Home Child Care Providers) Scheme (Northern Ireland) 2006.
d
F7anywhere outside the United Kingdom—
i
by a child care provider approved by an accredited organisation within the meaning given by regulation 4 of the Tax Credit (New Category of Child Care Provider) Regulations 2002 M13; or
F9ii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F43e
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F42f
in Wales—
i
by persons registered under Part 10A of the Children Act 1989;
ii
in schools or establishments which are exempted from registration under Part 10A of the Children Act 1989 by virtue of paragraph 1 or 2 of Schedule 9A to that Act;
iii
in respect of any period on or before the last day he is treated as a child for the purposes of this regulation, where the care is provided out of school hours, by a school on school premises or by a local authority;
iv
by a child care provider approved by an accredited organisation within the meaning given by regulation 4 of the Tax Credit (New Category of Child Care Provider) Regulations 1999;
v
by a foster parent under the Fostering Services (Wales) Regulations 2003 in relation to a child other than one whom he is fostering;
vi
by a domiciliary care worker under the Domiciliary Care Agencies (Wales) Regulations 2004; or
vii
by a child care provider approved under the Tax Credits (Approval of Child Care Providers) (Wales) Scheme 2007.
F452A
In paragraph (2)(a)(iii)—
“proprietor”, in relation to a school, means –
- a
the governing body incorporated under section 19 of the Education Act 2002, or
- b
if there is no such body, the person or body of persons responsible for the management of the school;
- a
“school” means a school that Her Majesty’s Chief Inspector of Education, Children’s Services and Skills (the “Chief Inspector”) is or may be required to inspect;
“school premises” means premises that may be inspected as part of an inspection of the school by the Chief Inspector.
2B
Care provided for a child in England is not registered or approved care under paragraph (2)(a)(iii) if—
a
it is provided during school hours for a child who has reached compulsory school age, or
b
it is provided in breach of a requirement to register under Part 3 of the Childcare Act 2006.
3
For the purposes of this regulation a person is a child until the last day of the week in which falls the 1st September following that child’s fifteenth birthday (or sixteenth birthday if the child is disabled).
4
For the purposes of paragraph (3) a child is disabled where—
a
a disability living allowance is payable in respect of that child, or has ceased to be payable solely because he is a patient;
b
the child is registered as blind in a register compiled by a local authority under section 29 of the National Assistance Act 1948 M14 (welfare services) or, in Scotland, has been certified as blind and in consequence is registered as blind in a register maintained by or on behalf of a local authority in Scotland, or, in Northern Ireland has been certified as blind and in consequence is registered as blind in a register maintained by or on behalf of a Health and Social Services Board; or
c
the child ceased to be registered as blind in such a register within the 28 weeks immediately preceding the date of claim.
5
Charges paid in respect of the child’s compulsory education or charges paid by a person to a partner or by a partner to the person in respect of any child for whom either or any of them is responsible are not relevant child care charges.
6
Where regulation 15(4) (agreement for the provision of future child care) applies—
a
the words “charges paid” in paragraph (1) include charges which will be incurred, and
b
the words “child care provided” in paragraph (1) include care which will be provided.
F207
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Relevant child care charges are calculated on a weekly basis in accordance with regulation 15.
Calculation of relevant child care charges15
1
Relevant child care charges are calculated by aggregating the average weekly charge paid for child care for each child in respect of whom charges are incurred F12and rounding up the total to the nearest whole pound.
This is subject to F11paragraphs (1A) and (2).
F101A
In any case in which the charges in respect of child care are paid weekly, the average weekly charge for the purposes of paragraph (1) is established—
a
where the charges are for a fixed weekly amount, by aggregating the average weekly charge paid for child care for each child in respect of whom charges are incurred in the most recent four complete weeks; or
b
where the charges are for variable weekly amounts, by aggregating the charges for the previous 52 weeks and dividing the total by 52.
2
In any case in which the charges in respect of child care are paid monthly, the average weekly charge for the purposes of paragraph (1) is established—
a
where the charges are for a fixed monthly amount, by multiplying that amount by 12 and dividing the product by 52; or
b
where the charges are for variable monthly amounts, by aggregating the charges for the previous 12 months and dividing the total by 52.
3
In a case where there is insufficient information for establishing the average weekly charge paid for child care in accordance with paragraphs (1) and (2), an officer of the Board shall estimate the charge—
a
in accordance with information provided by the person or persons incurring the charges; and
b
by any method which in the officer’s opinion is reasonable.
4
If a person—
a
has entered into an agreement for the provision of child care; and
b
will incur under that agreement relevant child care charges in respect of child care during the period of the award,
the average weekly charge for child care is based upon a written estimate of the future weekly charges provided by that person.
Change of circumstances16
1
There is a relevant change in circumstances if—
F13a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
F14during the period of an award, the weekly relevant child care charges, rounded up to the nearest whole pound—
i
exceed the average weekly charge calculated in accordance with regulation 15 by £10 a week or more;
ii
are less than the average weekly charge calculated in accordance with regulation 15 by £10 a week or more; or
iii
are nil.
If there is a relevant change in circumstances, the amount of the child care element of working tax credit shall be recalculated with effect from the specified date.
F152
For the purposes of paragraph (1), the weekly relevant child care charge—
a
where the child care charges are for a fixed weekly amount, is the aggregate of the weekly charge paid for child care for each child in respect of whom charges are incurred in each of the four consecutive weeks in which the change occurred; or
b
where the child care charges are for variable weekly amounts, is established by aggregating the anticipated weekly charge paid for child care for each child in respect of whom charges will be incurred for the following 52 weeks and dividing the total by 52.
3
If in any case the charges in respect of child care are paid monthly, the weekly relevant child care charge for the purposes of paragraph (1) is established—
a
where the charges are for a fixed monthly amount, by multiplying that amount by 12 and dividing the product by 52; or
4
In a case where there is insufficient information for establishing the weekly relevant child care charge paid for child care in accordance with paragraphs (2) and (3), an officer of the Board shall estimate the charge—
a
in accordance with information provided by the person or persons incurring the charges; and
b
by any method which in the officer’s opinion is reasonable.
5
For the purpose of paragraph (1) the specified date is—
a
where the child care charges are increased, the later of—
i
the first day of the week in which the change occurred, and
ii
the first day of the week in which falls the day which is three months prior to the date notification of the change is given;
b
where the child care charges are decreased, the first day of the week following the four consecutive weeks in which the change occurred.