Work and Benefits

You may also be able to get extra help if you have a child with a disability. The system is quite complicated and you will need to apply to find out exactly how much money you can get, also the form may seem difficult but a lot of it will not apply to you, try to work your way through it. If there are questions you are not sure about phone the helpline on 0845 300 3900 and ask them to explain it in plain English. If you need more help with filling out benefit forms contact the Citizens' Advice Bureau (CAB) or local Advice Centre.

A brief summary of Tax Credits:

Child Tax Credit – money for your children

This is for families with at least one child (also paid to those on Income Support). It is made up of the following elements:

A family element that is payable to any family responsible for a child. It is paid at a higher rate to families with at least one child under the age of one. This is known as the baby element.

A child element for each child you are responsible for. This is paid at a higher rate if the child has a disability and at an enhanced rate for a child with a severe disability. This is known as the disabled child element.

Working Tax Credit – money for you

This is a tax credit for people who are in paid work, working over sixteen hours and may include:

Childcare element – money for childcare costs
This is to help with childcare costs (the amount of money you pay to the approved childcare provider for them to look after your child or children)

As part of Working Tax Credit you may qualify for extra help towards the costs of childcare. To apply for the childcare element lone parents must work 16 hours or more. It is worked out as an average of your weekly payments and would include childcare in the school holidays.
If you do qualify, the total amount of help you receive will depend on your income. From April 6 2006, it can be up to a maximum of 80p for every £1 you pay out in childcare costs. There is a limit of £175 per week for one child and £300 for two or more. This means the most you can get if you have one child is £140 (£175 at 80p in the £1), or £240 (£300 at 80p in the £1) if you have two or more children.

To claim for childcare costs the child/ren you are claiming for must be under the qualifying age, which is either 15 or 16.

Childcare Provider
To qualify the person or organisation who looks after your child must be:

a registered childminder, nursery or play scheme, or
an out of hours club on school premises run by the school or Local Authority, or a childcare scheme run by an approved provider, or
(subject to the approvals scheme being in place) a child carer who is approved to care for your child or children in your own home, or
(subject to the necessary legislation being in place) a domiciliary worker or nurse from a registered agency who cares for the child or children in your own home. If you think this applies to you, phone the helpline on 0845 300 3900.

You cannot claim the costs of any form of childcare arrangement that does not fit into one of the categories above. A friend or family member such as grandparent or aunt will not qualify unless they are a registered childminder, if you want to find out about becoming a registered childminder call the National Child Minding Association on Freephone: 0800 169 4486.

Housing Benefit
If you are working you may still be eligible for help with your rent, however you will have to apply for Housing Benefit. You may want to find out how long it takes to reapply for Housing Benefit in your area, in some areas it is quite quick but in other areas it can take a while. If there are delays in your area you will need to consider how you will manage until you get your payments. If you need to find out how much Housing Benefit you will get you can contact the Gingerbread advice line on 0800 0184318.

For more information on Tax Credits call the Helpline on 0845 300 3900 (0845 603 2000 for Northern Ireland) or visit the website www.taxcredits.inlandrevenue.gov.uk or consult the New Deal for Lone Parents Advisor at your local Job Centre who can calculate whether you will be better off working.