1. Family Benefits Advice Service
Information for
Childcare Providers
Intro
EFC and FBAS

2. Vision:
‘To make it easier for parents with dependent children to get into work and stay in work’
Vision
What we do - Childcare vouchers
Charity FBAS
Lobbying government – with information gathered from parents, employers and CCPs
Most recently NI Childcare cost survey 2017 launched last week - I will be sharing some of that feedback in a moment
The Childcare Provider research will be being launched at a later date

3. 87% The affordability of childcare -
What parents think of their childcare provision
87%
of parents think the quality of childcare provision is good or very good.
If a child is content, settled and the parent feels comfortable and trusts the provider then, for many, this is worth the cost.
Parents are overwhelming positive about their experience of using registered care
The outcomes are worth the cost

4. 30% 46% The affordability of childcare -
Struggle to meet childcare costs
46%
of parents struggled with their childcare costs either throughout the year or at some point during it
30%
of parents said their childcare costs are their largest monthly outgoing
Parents reporting that they are struggling with the costs of childcare is a cause for concern for us as a Benefits Service
As you can see from these statistics and responses – however when asked what they are doing about this ….

5. Financial assistance for parents
33% of parents have
taken steps in the
last year to find out what financial support they are entitled to with the
cost of childcare.
Only 33% have actually done anything about that

6. Financial assistance for parents
64% of parents want to find out more about what financial support they may be entitled to towards the cost of childcare.
64% would like to find out more about what financial support they may be entitled to with the cost of childcare, suggesting that a majority of families are unsure if they are claiming all of the family benefits and entitlements that are available for their family.

7. Family Benefits Advice Service
Advice and Information on:
Benefit Entitlement Checks
Social Security Benefits
Child Benefit
Tax Credits
Universal Credit
Sure Start Maternity Grant
Healthy Start Vouchers
Free School Meals
School Uniform Allowance
Maternity and Paternity legislation
Flexible working
Childcare Vouchers
Tax Free Childcare
Our FBAS covers a wide range of benefits, not just related to childcare costs.
While I have already said our focus is towards parents but we are often giving information to other group such as yourselves a childcare provider and to employers, usually the HR or Payroll depts who have queries related to the support they offer their employees

8. Support for registered childcare costs
Support for childcare through:
Working Tax Credits
Universal Credit
Childcare Vouchers
Tax Free Childcare
Education System
Today I will be looking at the support towards childcare costs through the various forms of support for working parents
There is also some support through the education sector, however that is dependent on the type of course and level of course the student is engaged in.
We can advise parent on this as well but often we refer them on to their

9. Financial Support towards childcare costs
General Rules:
Must be paying a registered childcare provider
Help for childcare costs is generally only available to working parents
If part of a couple, both must be in work unless one receives DLA/PIP, ESA or Carer’s Allowance
Working Tax Credits – Childcare element, stat mat disregard (ignore £100 per week of SMP within any given tax year)
Childcare Vouchers – salary sacrifice scheme, employer has to offer it, basic rate tax payer saves £77/month in tax and national insurance contributions.
Education System
Care to Learn Scheme
Students age 16 to 20
Full-time and part-time FE and HE students enrolled in FE College – for courses up to NVQ Level 5
Live and study in N. Ireland
100% registered childcare costs may be claimed up to maximum of £165 per child per week
Childcare Grant
Full time students in Higher Education
Normally live in N. Ireland, may be studying in GB
Household cannot be in receipt of any other form of help with Childcare costs eg Childcare Element of WTC
Up to 85% of your registered childcare costs up to a maximum of:
£175 per week for 1 child
£300 per week for 2 or more children
NOTE - Parents' Learning Allowance
Full-time students with children could get up to £1,538 a year to help with their learning costs. This is called Parents’ Learning Allowance.
It’s available on top of any standard student finance you get, and doesn’t have to be paid back.
The money can help pay for books, study materials and travel. How much you get depends on your household income.
Parents’ Learning Allowance:
doesn’t have to be paid back
is paid on top of your other student finance
won’t affect your benefits or tax credit
You can apply whether you get the Childcare Grant.

10. Working Tax Credits

11. Childcare Element of Working Tax Credit
To qualify the claimant must be:
Responsible for at least one child
Using registered childcare
Lone parent working at least 16 hours per week. OR
Member of a couple and
Both working at least 16 hours per week, or
One working 16 hours per week, the other incapacitated, in hospital or prison or in receipt of Carer’s Allowance.

12. Childcare Element of Working Tax Credit
Claimant can receive 70% of ‘reasonable’ registered childcare costs.
Maximum childcare costs allowed:
£175 per week for 1 child
£300 per week for 2 or more children.
Up to age 15 or 16 if the child has a disability.
What is ‘reasonable’?
This is not specifically defined by HMRC
But for example:
If a parent from Northern Ireland is working 16 hours at minimum wage, and has one child, but is claiming their childcare is £175 per week, this would not be seen as reasonable when compared against their earnings and working hours.

13. Childcare Element of Working Tax Credit
Claimant reports registered childcare costs to Tax Credits
Claimant receives the monetary amount as part of the overall Tax Credit payment
Paid directly into personal bank account
Claimant pays childcare provider
HMRC conducts checks with the Childcare provider

14. Universal Credit

15. Universal Credit
The benefits that will be replaced by Universal Credit are:
Income Support
Jobseeker’s Allowance (income-based)
Employment and Support Allowance (income-related)
Housing Benefit (rental)
Child Tax Credits
Working Tax Credits
Administered in NI by Department for Communities

16. Universal Credit
Phased roll out across NI in , timing is dependent on JBO area
New claimants can no longer claim the old benefits - must claim Universal Credit instead
Changes in circumstances may mean claimants are forced to claim Universal Credit

17. Week commencing
Jobs & Benefits / Social Security office
27-Sep-17
Limavady
15-Nov-17
Ballymoney
13-Dec-17
Magherafelt and Coleraine
17-Jan-18
Strabane and Lisnagelvin
07-Feb-18
Foyle and Armagh
21-Feb-18
Omagh and Enniskillen
07-Mar-18
Dungannon and Portadown
16-May-18
Downpatrick and Newry
30-May-18
Kilkeel, Lurgan and Newcastle
13-Jun-18
Falls and Shankill
27-Jun-18
Andersonstown and Banbridge
05-Sep-18
Holywood Road and Ballynahinch
19-Sep-18
Newtownabbey and Newtownards
03-Oct-18
Shaftesbury Square and Carrickfergus
17-Oct-18
Knockbreda and Bangor
31-Oct-18
Lisburn and Larne
14-Nov-18
North Belfast and Cookstown
05-Dec-18
Ballymena and Antrim

18. Universal Credit
Universal Credit replacing Tax Credits for new claimants with registered childcare costs
Universal Credit Childcare element will be 85% of registered childcare costs up from 70% under Tax Credits

19. Moving to Universal Credit
If there is a Change of Circumstances after Universal Credit has been introduced in their area, the claimant may be moved to Universal Credit at that time. 
This is termed ‘Natural Migration’
Any claimants still in receipt of any of the six benefits being replaced will be transferred to Universal Credit between July 2019 and March 2022. 
This is termed ‘Managed Migration’

20. Childcare Vouchers

21. Childcare Vouchers What are Childcare Vouchers?
Tax and National Insurance exemption scheme
Only available through employers
Mums and dads can both claim
Available for children up to 15 or 16 if registered disabled
Childcare Vouchers
For those who are not familiar with them, this is what they are and how they work
Government allows parents to have up to £243 of their monthly salary ‘tax and national insurance free’
This amount can only be used to pay for registered childcare
Available for children up to age 15 (or 16 if disabled)
Both parents can use the scheme through their employers
Can affect Tax Credit awards – we can do the calculation to check which is best – tax credits, childcare vouchers or a combination of
both.

22. Savings through Childcare Vouchers
£243 deducted from parent’s salary and added to Childcare Voucher account.
Tax and NIC free
Monthly savings £77.76 per parent
Maximum annual saving £933 per parent

23. Payment via Bacs to Childcare provider
Childcare Vouchers
£243 automatically added to Childcare Voucher Account
Payment via Bacs to Childcare provider
Parent gets paid
Parent saves up to £77 per month through tax and NIC.
Employer takes the voucher amount from the parent’s salary
The amount goes into their voucher account
Parents authorise the payments
Monetary amount paid directly from parent’s Childcare Voucher account to childcare provider bank account
Parents pay any remaining amount of childcare costs not covered by the Childcare Voucher amounts.

24. Childcare Vouchers
The Childcare Voucher scheme (CCV) will close to new entrants in April 2018.
If a parent moves from the CCV to Tax-Free Childcare they are unable to get back into CCV.

25. Tax-Free Childcare

26. What is Tax-Free Childcare?
New Scheme to help parents with the cost of registered childcare – replacing Childcare Vouchers.
Administered by HMRC
For households with children under 12, or under 17 if the child has a disability.

27. Who is eligible to join the Tax-Free Childcare scheme?
Both parents must be in employment, and earning between £120 per week and £100,000 per year.
Self-employed parents are eligible to join.
Eligibility must be confirmed every 3 months

28. What help is there through Tax-Free Childcare?
20% of a working family’s childcare costs.
Up to a maximum of £2,000 per child per year, or £4,000 for a child with a disability, from the Government.

29. How will Tax-Free Childcare work in practice?
Parents apply online at childcarechoices.gov.uk
For every £8 paid into an account, the Government will pay in £2, up to a maximum of £2,000 per year per child
Parents open an account for each child.
Payments made directly to the childcare provider from the Tax-Free account.

30. Tax-Free Childcare and Childcare Providers
Must be a registered childcare.
To accept payment though Tax-Free Childcare, childcare providers must register with HMRC.
Payments will be made directly into the childcare providers bank account.
Separate payments will be made for each child

31. Tax-Free Childcare Payment via Bacs to Childcare provider
Parent adds 80% of total childcare bill to online account
Parent gets paid
Government adds 20%

32. Tax-Free Childcare
Tax-Free Childcare to sign up
Tax-Free Childcare Helpline Number

33. Support available to Parents, Employers and Childcare providers
Access to Freephone Helpline
Parent’s information sessions
Access to online Factsheets and Reports
Information Posters

34. All of our advice and information services for parents are FREE, CONFIDENTIAL and IMPARTIAL
Freephone: