The Childcare Payments Regulations 2015

Compensatory payments U.K.

17.—(1) Subject to paragraphs (5) and (6), the circumstances specified in [F1 paragraphs (2), (3) [F2 , (3A) and (3B)]] are specified for the purposes of section 62.

(2) The circumstances specified in this paragraph are—

(a) an appealable decision under section 56(3)(a), (b), (c), (e) or (h) is—

(i) varied or cancelled on a review under section 57; or

(ii) quashed (wholly or partly) under section 60;

(b) a person has applied to open a childcare account but HMRC are unable to confirm eligibility solely because of a delay in the payment to the person, or to the person's partner, of—

(i) carer's allowance under section 70 of the Social Security Contributions and Benefits Act 1992 or section 70 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992; or

(ii) contributory employment and support allowance under section 1 of the Welfare Reform Act 2007 or section 1 of the Welfare Reform Act (Northern Ireland) 2007; or

(c) in relation to a disabled child, an application is made to open a childcare account but, solely because of a delay in the payment to the child of—

(i) disability living allowance;

(ii) personal independence payment; or

(iii) armed forces independence payment,

HMRC is unable to grant the application, or is able to grant it but subject to a relevant maximum less than the relevant maximum which applies in respect of a disabled child.

(3) The circumstances specified in this paragraph are—

(a) the circumstances are as specified in paragraph (2)(b) but, at the time the payment is made, the person is no longer an eligible person for a reason unrelated to the delay in payment;

(b) the circumstances are as specified in paragraph (2)(b) but, at the time the payment is made, the child in relation to whom the application was made has died; or

(c) the circumstances are as specified in paragraph (2)(c) but the child dies during the period of delay in payment.

[F3 (3A) The circumstances specified in this paragraph are that—

(a) a person is unable to open a childcare account, or

(b) a person’s childcare account fails to function effectively

for a continuous period of at least 14 days, due to a serious technical failure [F4 or a design flaw] affecting HMRC or the account provider.]

[F5 (3B) The circumstances specified in this paragraph are that a person’s childcare account for a child (“C”) is made subject to an account restriction order where—

(a) another person (B) wants to apply for, or make a declaration of eligibility for, 30 hours free childcare in respect of C under section 1 of the Childcare Act 2016; and

(b) B does not want to hold a childcare account for C in circumstances where holding that childcare account would prevent B from receiving tax credits in respect of C.]

(4) The amount paid to a person under section 62 in respect of a child for a period (the “compensation period”) may not exceed the amount of top-up payments that person could have received if—

(a) the circumstances specified in [F6 paragraphs (2), (3) [F7 , (3A) or (3B)]] had not arisen; and

(b) the person had held an active childcare account in respect of the child throughout the compensation period.

(5) Circumstances specified in paragraph (2)(b) or (c) or (3) are not specified for the purposes of section 62 for any period of delay in payment in respect of which an award of tax credits is or has been made to the person claiming a compensatory payment.

(6) Circumstances specified in paragraph (2) are not specified for the purposes of section 62 to the extent that a person has received, in respect of those circumstances, additional top-up payments by using an increased amount of relevant maximum awarded under regulation 13 or 14.

(7) A person claiming a compensatory payment must provide to HMRC evidence of payment of the costs incurred on qualifying childcare.

(8) In this regulation references to carer's allowance, contributory employment and support allowance, disability living allowance, personal independence payment and armed forces independence payment include references to allowances and payments made under the law of another EEA state which are substantially similar in character to those allowances and payments.

Textual Amendments

F1 Words in reg. 17(1) substituted (5.9.2016) by The Childcare Payments (Amendment) Regulations 2016 (S.I. 2016/796), regs. 1, 7(a)

F2 Words in reg. 17(1) substituted (6.4.2020) by The Tax Credits, Child Benefit, Guardians Allowance and Childcare Payments (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/297), regs. 1, 8(3)(a)

F3 Reg. 17(3A) substituted (7.12.2017) by The Childcare Payments (Amendment) Regulations 2017 (S.I. 2017/1096), regs. 1, 4

F4 Words in reg. 17(3A) inserted (6.4.2020) by The Tax Credits, Child Benefit, Guardians Allowance and Childcare Payments (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/297), regs. 1, 8(3)(b)

F5 Reg. 17(3B) inserted (6.4.2020) by The Tax Credits, Child Benefit, Guardians Allowance and Childcare Payments (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/297), regs. 1, 8(3)(c)

F6 Words in reg. 17(4)(a) substituted (5.9.2016) by The Childcare Payments (Amendment) Regulations 2016 (S.I. 2016/796), regs. 1, 7(c)

F7 Words in reg. 17(4)(a) substituted (6.4.2020) by The Tax Credits, Child Benefit, Guardians Allowance and Childcare Payments (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/297), regs. 1, 8(3)(d)