We know childcare costs can be expensive, especially when you have more than one child. Integrity Tuition Services (ITS Bookworms), has tried to ease this by successfully registering with the Ofsted Childcare register. This means that when parents enrol their children with ITS Bookworms, they can get financial support for the tuition, if they qualify with the government guidelines. This blog will help give you a bit more understanding into what this means, and what is being offered to you.
Working Tax Credit
Working Tax Credit and Universal Credit are paid to people who earn a low wage, they are used to simply top up this wage. Working Tax Credit is gradually being phased out and is going to be replaced by Universal Credit.
Working Tax Credit includes a childcare element, which gives help to parents with their childcare costs. This element of the Working Tax Credit is eligible to pay up to 70% of childcare costs up to set weekly amounts.
Eligible childcare costs are set at £175 per week for one child and £300 per week for two children. This means you could receive up to £122.50 per week with one child in childcare, or £210 for two or more children. The amount you are awarded will depend on your family circumstances.
Conditions for claiming Working Tax Credit
To be eligible for Working Tax Credit, you must:
- be aged from 16 to 24 and have a child or a qualifying disability, or be 25 or over, with or without children.
- use registered childcare provider; and
- be working at least 16 hours per week. If you are a couple, you must both be working at least 16 hours per week. If one of you is in hospital, prison, incapacitated or on Carers Allowance, the other parent must work at least 16 hours per week.
Universal Credit is the new benefit that will gradually replace Working Tax Credit. It will be paid to people who are not working, or who are working but receiving a low wage. Universal Tax, similar to Working Tax Credit also involves a childcare element however, will now pay up to 85% of eligible childcare costs. This will also be set up in weekly amounts.
Eligible childcare costs are set at a monthly limit of £760.42 for one child and £1303.57 for two or more children. This means you could receive up to £646.35 per month with one child in childcare, or £1108.04 for two or more children. The amount you are awarded will depend on your family circumstances.
Conditions for claiming Universal Credit.
To be eligible for Universal Credit, you must:
- use a registered childcare provider
- be in paid work. If you are a couple, both of you should be in paid work. There is an exception to this where one member of the couple is not working and is unable to provide childcare themselves because they are incapacitated, a carer, or absent from the household.
For all enquiries about Tax Credits including details on who can claim and any change in circumstances you call the Tax Credits Helpline on 0345 300 3900 or visit: www.gov.uk/working-tax-credit/overview . Alternatively, go to www.gov.uk/apply-universal-credit or call Universal Credit helpline on 0345 600 0723.
If you would like to register with us here at ITS Bookworms, please speak to one of our dedicated managers, call 0208 665 2605 or visit one of our centres either in Mitcham or Wimbledon.
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