Calculation Of Weekly Childcare Charge (Info)

When childcare charges are paid weekly, the relevant childcare charges are calculated by averaging the weekly charge paid for each child and rounding the charge up to the nearest whole pound.

Where childcare charges are paid in a fixed weekly amount, the charges are calculated using the most recent four consecutive weeks.

In cases where childcare charges are paid in variable weekly amounts, the weekly charges are calculated by averaging the amounts paid during the previous 52 weeks and dividing that figure by 52.

Where childcare charges are only incurred during school holiday periods, the weekly charges are calculated by adding together all the payments made during the previous 52 weeks and dividing that figure by 52. Any changes to the childcare charges must be calculated in the same way.

Where childcare charges are paid monthly, in a fixed monthly amount, the weekly amount is calculated by multiplying the charges by 12 and dividing the total by 52.

If the childcare charges are paid in varying monthly amounts, the weekly amount is calculated by aggregating the amounts paid over the previous 12 months and dividing the total paid by 52.

Note for childcare provided in England: Where the care provided is in the child’s home, the provider’s registration with OFSTED must be renewed every year. Where a childcare provider’s approval with OFSTED is withdrawn or lapses after the year, they are no longer treated as providing relevant childcare. It is for the claimant to ensure that their childcare provider is properly registered and remains registered throughout the year. The registration fee is to be included in the eligible childcare costs when claimed by the claimant.

Where no information or insufficient information is available to calculate the relevant weekly childcare charges, using the above, the relevant childcare element will be the amount estimated to be paid, by the claimant.

Note: The relevant charges are always a weekly amount

Where a new childcare agreement has been entered into and the claimant or their partner will incur childcare charges in respect of a child in the family, during the period of the award, the relevant weekly charge will be calculated using an estimate of the future weekly charges provided by the claimant or their partner.