Child Care Costs

The amount that for child care can be offset against your earnings used in your Housing and Council Tax Benefit calculations. The maximum weekly childcare costs that we can offset are £175.00 for one child and £300.00 for two children.

Who qualifies to have their child care costs offset?

We can offset your child care costs when a claimant is:

  • lone parent working 16 hours or more each week;
  • part of a couple where both parents work 16 hours or more each week;
  • a couple where one parent works 16 hours or more each week and the other is incapacitated.

A child will qualify for a childcare disregard until the first Monday in September after their 15th birthday. If the child is disabled children they will qualify until the first Monday in September after their 16th birthday.

How are child care costs calculated?

If the amount of child care you pay stays the same throughout the year we will deduct the actual amount you pay from your earnings, up to a maximum of £175.00 or £300.00 per week.

If the amount you pay varies between term and holiday times we will average the cost over the year. For example:

Term time charges
£30.00 per week x by 39 term time weeks each year = £1,170.00
Holiday charges
£45.00 per week x by 13 weeks for school holidays = £585.00

Total amount paid during the year is £1,755.00
£1,755.00 divided by 52 weeks = £33.75

£33.75 per week would be deducted from your earnings when we calculate your benefit entitlement.

What evidence will I need to provide?

Please provide a letter or receipts from your child care provider showing the names of children for whom care is being provided, and the amount paid. Ideally we would like the letter or receipts to be in an official format showing the name, address of the care provider.

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