TCTM02601 - Entitlement: WTC entitlement: Child care element

Introduction

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 3(1)(d)

The child care element is an element of WTC and is added to the basic element with any of the other 5 qualifying elements of WTC appropriate to the claimant’s circumstances.

The Working tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 20 (2-3)

From 6 April 2006 the child care element can help with 80% of eligible child care costs up to a maximum cost of:

• £175 a week, where the child care is in respect of one child, and
• £300 a week. where the child care is in respect of two or more children

This means that the maximum childcare element available is £140.00 for the child care for one child and £240.00 for two or more children.

(For awards prior to 6 April 2006, the child care element allowed for up to 70% of eligible costs)

Payment of the child care element will be made to the main carer.