Childcare Changes And Assessing Childcare (Info)
There is an Action Guide for this subject, click on 'Next Page' to access it
This guidance covers action to take, where the childcare element is being claimed or amended
Assessing costs
Calculating weekly costs
Effective start dates
Workarounds
Examples of when childcare costs cannot be
included
DWP 2 year pilot
You must first check eligibility for childcare before proceeding. Follow the guidance in Entitlement To Childcare Element Of WTC
Note: For information on adding a childcare provider, follow the guidance in Adding A Childcare Provider
Claimants returning to education who have responsibility for children can claim childcare costs from the Department for Children, Schools and Families (DCSF), formerly called the Department for Education and Skills (DfES). Follow the guidance in Child Care And DCSF (Formerly DfES)
You must also check if the childcare is being claimed on the grounds that one of the claimant(s) is incapacitated. For more information follow the guidance in Incapacitated Partners
Do not include any costs which are paid for by childcare vouchers, even if the claimant receives the vouchers in return for a reduction in the amount of pay they receive
Only at the end of the calculation do you round up the nearest whole pound
| Frequency of childcare costs | First claim for childcare costs | Changes to existing claim |
| Same amount each week | Enter the weekly amount |
|
| Same amount every fortnight | Divide the fortnightly costs by 2 |
|
| Same amount every four weeks or each calendar month | If childcare costs have been in
payment for 12 months or more
|
|
| Variable amounts every week, fortnight, four weeks or calendar month | If childcare costs have been in
payment for 12 months or more
|
|
| If the claimant has just entered into a childcare agreement | They must provide a weekly estimate of future childcare costs based on a written estimate from their childcare provider |
| If the claimant pays by any other frequency than those listed in the examples above | If there is not enough information to calculate their childcare costs under the examples above, then estimate the costs using the information available and using any reasonable method |
Note: For more examples on how to calculate childcare costs see childcare example 1
If the change to current childcare costs is less than £10.00 a week but the childcare provider has changed, then you must update the childcare provider details only
If the claimant is on maternity leave, then new costs for the new child (the child is currently in childcare or an arrangement is due to start within 7 days) can be claimed where the claimant was in remunerative work before maternity leave began, and costs are being incurred or are due to start in the next 7 days
To change the childcare costs you must enter the new childcare details and enter the effective date of the change
- If the childcare has increased or decreased you must enter a Saturday end date for the current costs and then enter a Sunday start date for the new costs
Note: When considering if the childcare costs have increased or decreased by £10.00 or more a week, you need to look at the total childcare costs, not just individual costs
For example: The current childcare provider costs have decreased by £5.00 a week and an additional childcare provider costs are £30.00 a week, meaning the total costs have increased by £25.00 a week. Even though the current provider costs have only decreased by £5.00 a week you would still amend these costs
- If there are previous childcare costs which have ceased, you need to check whether the new childcare costs overlap into any previous 4 week run on
For example: The claimant had reported that childcare had ceased, and the 4 week end date has been applied. A week later the claimant reports that childcare is not now ceasing, but the costs have changed. In this case the normal rules would apply in terms of checking if any increase or decrease has occurred and if necessary, apply a change to the previously set end date. If the end date has passed and the claimant then reports new childcare costs which start after the end date, then you would treat this as a new claim to childcare and not look to fill any gap between the old end date and the new start date
- Any change in childcare that affects more than one tax year
must be applied to each applicable year or it will not be
recognised and actioned by the computer. This is only after you
have followed the guidance in
Establish If A Change Can Be Made. Refer to
childcare example 2
- Where the claimant has been in more than one claim, check each claim to ensure the childcare costs have been recorded correctly
For example: The claimant ended the previous household on 12/08/2006, the new claim started on 13/08/2006 and the claimant subsequently tells you that the childcare costs changed from 30/06/2006. Therefore, both claims must be amended in respect of the childcare costs
When ending childcare costs which are less than £10.00 a week the following message will display ‘Changes in costs must be more than £9.99’
- Make a note of all the costs and dates
- Delete all the details and complete the Amend Finish screen
Then
- Use Function AMEND APPLICATION again and re-enter all the new costs and dates
Note: This will work, but will produce two award notices
When childcare costs have increased and the backdating period is limited to 3 months because the claimant failed to notify the change within 3 months, it is important that the period from when the old costs ended to where the 3 month backdating period starts is backfilled with the old costs to ensure continuous payment
If the claimant has a gap in work history due to working less than 16 hours a week
- The computer will not allow amendments to the childcare costs
and an error message will display
- In this scenario it will be necessary to end childcare costs with the same date as the work end date and enter new childcare details from the date the claimant starts to work 16 hours a week again
Note: Do not delete more than 3 childcare provider costs in a single instance. If you are deleting costs for more than 3 childcare providers, action the changes in more than one session. For example, complete the Amend Finish screen on more than one occasion
- Clicking on the [Cancel] button in the Childcare Provider screen will only cancel changes made to the childcare provider details and will not cancel any amendments made to childcare costs. Therefore, you must cancel out of Function AMEND APPLICATION and then re-enter the Function to amend any details
If the claimant uses a childminding agency for childcare purposes and the agency employs registered childminders to look after the children and the claimant’s childminder frequently changes within the agency
- It is not necessary to record each separate childminder for
each period, however the claimant should provide the details of at
least one childminder, the one used most that is supplied by the
agency
- Make a note in Household Notes of this childcare arrangement
Examples of when childcare costs cannot be
included
There may be instances where you cannot include the childcare costs, such as
- The childcare provider is not registered. Follow the guidance
in
Evidence Of Registration
- The claimant does not pay any childcare costs themselves; for example their employer provides them with childcare vouchers
Note: A new childcare provider must not be added to a claim where there is no childcare cost being paid
On 28 April 2008, the Department for Work and Pensions (DWP) launched a 2 year pilot that allows payment of up-front childcare costs for lone parents. The pilot is taking place in 6 Jobcentre Plus London districts. All payments made from the Up-Front Childcare Fund (UFCF) are made directly to the registered or approved childcare provider. Any periods of childcare costs covered by the up-front payment by DWP should not be included for tax credits purposes
