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FINANCIAL HELP WITH CHILDCARE FOR LOWER-INCOME FAMILIES

If you are a working parent, you could be entitled to help from the government through the Working Tax Credit (WTC) and Child Tax Credit (CTC). But these are not the only schemes that can help you. You should be aware of all your entitlements.


CHILD BENEFIT

Child Benefit is payable to anyone bringing up a child under the age of 16. Parents of children studying full time under the age of 19 also qualify. It is paid at the same rate to all families regardless of income or hours worked. It is currently £16.50 a week for the first child and £11.05 for each other child (from April 2004).You can claim as soon as your child is born - and it is important to do so as they do not allow for back dated benefit.

For further information about Child Benefit go to: www.inlandrevenue.gov.uk/childbenefit


WORKING TAX CREDIT

What is it: Government initiative introduced to provide an earnings top-up for lower-income households. You may be able to help with the costs of paying for registered or approved childcare through the Childcare Tax Credit (CTC).

Who administers it: Working Tax Credit is administered by the Inland Revenue.

How much: There are different elements to it: a basic adult element; an extra element for working more than 30 hours a week; an extra element for single parents and couples; an extra element if you or your partner are working and have a disability ; an extra element if you are over 50 and a childcare element paying up to 70 per cent of childcare costs.

If you work more than 16 hours a week you may qualify for 70% of your weekly childcare bills up to a maximum of £135 for one child and £200 for two or more.

To qualify for Working Tax Credit, you must be:

  • aged 16 or over, working 16 hours or more a week and responsible for a child. (If you are a woman on maternity leave and would normally work 16 hours or more a week, you can still claim Working Tax Credit); or
  • aged 16 or over, working 16 hours or more a week and with a disability for which your are receiving a qualifying benefit; or
  • aged 50 or over, working 16 hours or more a week
  • aged 25 or over and working 30 hours or more a week.

Claimants need to take into account all their income, potential income, childcare costs and any other expenses such as travel costs. You should have all your wage slips from the past six months. If you are self-employed you should have a record of all employment and expenses. You need to be individually assessed to see if you qualify. Some families get just a few pounds; others get more than £100 a week.

The childcare element of the Working Tax Credit is not payable to relatives (such as grandparents) who look after your children, and those that use unregistered or unapproved childcare.

CHILD TAX CREDIT

Child Tax Credit (CTC) is a means-tested allowance for parents and carers of children or young people who are still in full-time education.

To Qualify you must:

  • be aged 16 or over
  • be responsibe for a child
  • have annual earnings of less than £50,000.

How much: The amount is made up of different elements:-

  • a family element – which is paid to any family with responsibility for one or more children
  • a child element which is paid for each child or qualifying young person in the family. The rate of child element for each child depends on the circumstances of each child in the family.

For more information about tax credits, go to: www.taxcredits.inlandrevenue.gov.uk

SURESTART MATERNITY GRANT

This is a one-off payment for new parents. You can apply for a Sure Start Maternity Grant (which is £500) if you or your partner are getting:

  • Income Support;
  • Income-based Jobseeker’s Allowance;
  • Working Tax Credit;

Claim on a Sure Start Maternity Grant form SF100 Sure Start, which you can get from your local Social Security Office.

You can claim a Sure Start Maternity Grant at any time from the 29th week of your pregnancy until your child is three months old.

For further information about the SureStart Maternity Grant go to: http://www.dwp.gov.uk/publications/dwp/2002/maternity/index.asp

NEW DEAL FOR LONE PARENTS

This is an initiative for lone parents. It aims to get people back into work or training. You can get advice on jobs and training, benefits, find out about childcare, help with working out how much you need and so on.

If you're a lone parent who works less than 16 hours a week or not at all, and your youngest child is under 16 years old, then the programme is open to you.

For further information about the New Deal for Lone Parents, go to: www.newdeal.gov.uk