Self employed, Maternity Leave and Childcare costs

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    Not sure if I am just having a Friday afternoon blank!!

    We have a self employed couple both working 35 hours per week.Child care disregards were allowed.

    Mrs is the claimant and has now gone on maternity leave and is in receipt of state maternity pay.

    Mr receives working tax credits.They still pay child care costs.

    When ending Mrs SE and applying MA the Northgate system is no longer allowing child care disregard and their weekly HB entitlement has reduced from £109.62 per week to £2.95 per week.

    On checking regs. it states that ' a claimant/partner who is on maternity, paternity or adoption leave is treated as being in remunerative work if they:

    -were in remunerative work in the week before the leave started

    -are continuing to pay relevant child care charges and

    -are entitled to ………maternity allowance.

    The Child care rules state that child care costs up to the maximum limit are disregarded where

    -part of a couple where both memebers work 16 hrs or more each week or

    -part of the couple where one partner works 16 hours or more each week and the other is incapacitated and

    -they or their partner pays relevant child care costs  etc…

    Can anyone confirm whether they do fulfill the qualifying criteria to continue to have child care costs disregarded or has the system applied the changes correctly?

    I can't believe that they should be so heavily penalised because our claimant is now pregnant.

    Carol Meredith

    They are still entitled to the child care disregard in this case for any existing children, but not the new baby.


    Thanks Carol you’re a star – thought I was going mad.


    Why not the new baby ? What Regs cover this exclusion please ?

    Inga Mycroft

    Christine – we have a seperate income code on iWolrd for these cases – in your scenario we would use MA (CCC) so the system knows the child care is allowable.

    Karen – we wouldn't allow the CCC for the new baby either in this scenario but I don't know the reg off the top of my head


    [quote=Inga Mycroft]Karen – we wouldn't allow the CCC for the new baby either in this scenario but I don't know the reg off the top of my head[/quote]

    Is there actually a reg for this?


    If mum is still deemed to be working and her partner is working any relevant CCC’s would be applied to the claim for any of the children who they pay childcare for.

    I can’t see any reason why you wouldn’t apply these (said confidently until shot down!!)



     [quote=Jon__Blackwell]Is there actually a reg for this?[/quote]


    No! I think Inga "misspoke", seems she was referring to regs below. 


    HBR 2, gives the meaning of a child, HBR 28, provides conditions for CCC and HBR 28 (2) provides that, for this claimant’s circumstances, she is entitled to CCC. 


    HBR 2. 

    "child" means a person under the age of 16 (so Ages 0 to 16)



    HBR 28.

    2) For the purposes of paragraph (1) and subject to paragraph (4), a person to whom paragraph (3) applies shall be treated as engaged in remunerative work for a period not exceeding 28 weeks during which he—


      • ………..

    is credited with earnings on the grounds of incapacity for work or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975.


    MA is listed under regulation 8B of the Social Security (Credits) Regulations 1975.

    Edited to add: At least that's what I think, after reading her post?


    Inga Mycroft

    Apologies – we'd only allow the CCC for the new baby whilst the person was on maternity / paternity / adoption leave if they'd been in remunerative work prior to the leave – in line with A5/2005 – if there's been a subsequent change to this please can you let me know as I'll have to change our procedures!!

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