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Original poster

Do UC actually pay 85% towards childcare?

31 replies

Em94 · 16/03/2024 07:33

I’ve been claiming childcare through UC now for a few months, my bill for nursery is 1500 a month. I’ve never ever had 85% of this back, I’ve had a statement for this month saying I’m getting £326 towards childcare.
I was told by UC that your earnings weren’t used to deduct childcare and this would remain 85%.

does anyone know how this works and how to actually claim the 85% as in worrying that I won’t be able to work much longer

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NaughtPoppy · 17/03/2024 15:04

Blondeshavemorefun · 17/03/2024 10:33

Why isn't it a business expense

If she doesn't pay for childcare she can't go to work ?

But I will tell her that

It’s just not allowable as a business expense.
You know nanny employers sometimes try to employ their nanny through their business rather than directly? It’s for the same reason.

TeaKitten · 17/03/2024 10:36

Blondeshavemorefun · 17/03/2024 10:33

Why isn't it a business expense

If she doesn't pay for childcare she can't go to work ?

But I will tell her that

Because it’s not a legitimate business expense, google explains it quite easily. Thats why tax free childcare etc exist too. Your friend will no she’s cheating the system already though.

Blondeshavemorefun · 17/03/2024 10:33

Why isn't it a business expense

If she doesn't pay for childcare she can't go to work ?

But I will tell her that

NaughtPoppy · 17/03/2024 08:22

Blondeshavemorefun · 16/03/2024 10:58

Sounds complicated

My friend applied for costs as now a single parent

She is se so May be slightly diff

She found it was better to pay for the childcare herself as came under an expense which then got her income down and meant she received her full uc which was around £683 (single and one child)

As seemed when she applied for childcare she def didn't get 85% of costs and was less then the uc of nearly £700

Guessing if employed can't do that ?

She will be in trouble if she gets caught doing that as childcare costs are not tax deductible!
She can’t use her childcare costs to reduce her taxable income, it isn’t a business expense.

Baby89 · 17/03/2024 08:16

Following

TeaKitten · 16/03/2024 16:00

Blondeshavemorefun · 16/03/2024 10:58

Sounds complicated

My friend applied for costs as now a single parent

She is se so May be slightly diff

She found it was better to pay for the childcare herself as came under an expense which then got her income down and meant she received her full uc which was around £683 (single and one child)

As seemed when she applied for childcare she def didn't get 85% of costs and was less then the uc of nearly £700

Guessing if employed can't do that ?

No you can’t do that when employed, there’s no paying expenses.

Blondeshavemorefun · 16/03/2024 10:58

Sounds complicated

My friend applied for costs as now a single parent

She is se so May be slightly diff

She found it was better to pay for the childcare herself as came under an expense which then got her income down and meant she received her full uc which was around £683 (single and one child)

As seemed when she applied for childcare she def didn't get 85% of costs and was less then the uc of nearly £700

Guessing if employed can't do that ?

SPsmama · 16/03/2024 09:03

Apologies OP I didn't RTFT properly.

If you have two kids in childcare at £1500 a month then your "children in childcare" (element) should be roughly £1275 before deductions. This obv isn't the exact amount because you'll be getting half of one month and half of the current month if your assessment period is 15-14th. Once you've been paying for a few months then this should even out, but if you've only been paying it for a month or two then you will see less for the first payment.

£300 could be correct if you've only paid Feb and March, Aprils UC should be adjusted with the correct amount.

As others have said, add a message on your journal for them to clarify. If you're submitting on the 1st of every month with evidence then it shouldn't be as low as £300.

TeaKitten · 16/03/2024 08:49

I no what you mean OP, mines wrap around care but it’s a pain. I pay my invoice in 2 payments, and just make them straight after each other so I can show UC 1 clear correct payment for each assessment period, and I draw on my invoice to show them the payments for which dates. If I don’t make it clear they screw it up. But if I post in my journal in both payments and work coach someone usually gets back to me quite quickly

Danikm151 · 16/03/2024 08:48

Just pop a message on your journal and ask them to recalculate the childcare. This month will be slightly less because Feb is 29 days. Mine was £30 less than usual

Original poster
Em94 · 16/03/2024 08:47

TeaKitten · 16/03/2024 08:44

Yep but they obviously haven’t paid you it, so I’d submit the costs you are entitled to, within the correct assessment period. If you submit costs for 2 assessment periods at once they will just process what you are entitled to in that assessment period and disregard the rest. I don’t no how they are suppose to do it, but they do it the quickest and laziest way they can in my experience. You had to make it clear and idiot proof for them.

Thankyou for your help I will contact them and ask if they need anymore costs proving.
its so tricky when the assessment period is 15th to 15th but we’re paying nursery 1st -31st

OP posts:
Original poster
Em94 · 16/03/2024 08:46

SPsmama · 16/03/2024 08:42

The "up to" 85% goes on your elements, if you earn more then obviously you have deductions.

Our childcare element is 85% of what we pay, but we don't see that money in our actual payment cos we both work to so earnings are deducted.

Yes so I’ve already had deductions on my statement so the payment of £300 must be wrong unless they’re deducting before they add it to the statement.

ive had about £600 taken due to my earnings but I take the childcare element out as the amount it says and put it into a seperate account to pay nursery.

OP posts:
TeaKitten · 16/03/2024 08:44

Yep but they obviously haven’t paid you it, so I’d submit the costs you are entitled to, within the correct assessment period. If you submit costs for 2 assessment periods at once they will just process what you are entitled to in that assessment period and disregard the rest. I don’t no how they are suppose to do it, but they do it the quickest and laziest way they can in my experience. You had to make it clear and idiot proof for them.

SPsmama · 16/03/2024 08:42

The "up to" 85% goes on your elements, if you earn more then obviously you have deductions.

Our childcare element is 85% of what we pay, but we don't see that money in our actual payment cos we both work to so earnings are deducted.

Original poster
Em94 · 16/03/2024 08:41

TeaKitten · 16/03/2024 08:40

I don’t think they carry over last months, I think you have to submit it in the assessment period. Put a note on the journal and say your costs are wrong and ask what extra info they need.

I’ve already submitted last months on the 1st of feb, then submitted another on the 1st march

OP posts:
TeaKitten · 16/03/2024 08:40

I don’t think they carry over last months, I think you have to submit it in the assessment period. Put a note on the journal and say your costs are wrong and ask what extra info they need.

Original poster
Em94 · 16/03/2024 08:39

TeaKitten · 16/03/2024 08:37

Is the bill you submitted entirely for the costs within your assessment dates? So if you submit a £1500 bill from 1-31st March, but your assessment period is 20march-19april you will only get the money back for 20-31 in that assessment period

Yes my full bill is submitted so I should have revived half of last months invoice which is from the first half of my statement period. Then I should have half of this billing period too, the invoice was submitted 8 days ago

OP posts:
Original poster
Em94 · 16/03/2024 08:38

YourSnugHazelTraybake · 16/03/2024 07:54

The childcare element is added to your total award before any deductions. They then deduct the amount of your income. They don't deduct 'from childcare' as it's not a separate payment, it forms part of your overall entitlement. E.g personal rates 200, + childcare 200 = entitlement 400, less wages deduction 250 = uc payable of 150.

This is the impression I was under too, but my total childcare is £300 and then I’ve had my total deductions on top of that.
so surely the childcare amount is wrong, well I would think so anyway

OP posts:
TeaKitten · 16/03/2024 08:37

Is the bill you submitted entirely for the costs within your assessment dates? So if you submit a £1500 bill from 1-31st March, but your assessment period is 20march-19april you will only get the money back for 20-31 in that assessment period

Original poster
Em94 · 16/03/2024 08:35

I’m gonna have to ask them for a breakdown of costs I think, if they’re not paying 85% I need to know what percentage they are paying! Very confusing

OP posts:
Poetryandprose · 16/03/2024 08:13

I have always had 85% exactly and have wondered how they decided when they pay a smaller percentage. I think possibly linked to costs versus hours worked/income. Hopefully they will have a clear rationale as to how they arrived at that figure.

ClutchingOurBananas · 16/03/2024 07:58

It’s up to 85% not definitely 85%.

You can get up to 85% of childcare costs paid back to you. The maximum amount a month is:

  • £950.92 for one child
  • £1,630.15 for 2 or more children
Poetryandprose · 16/03/2024 07:58

Sorry have just re read your messages. you need to ask how they calculated £326 childcare.

Poetryandprose · 16/03/2024 07:55

I have just had a look at mine. There is a line “children in childcare” Below “children” and before total entitlement. Then the deductions section.
does the amount by “children in childcare” look right?

YourSnugHazelTraybake · 16/03/2024 07:54

The childcare element is added to your total award before any deductions. They then deduct the amount of your income. They don't deduct 'from childcare' as it's not a separate payment, it forms part of your overall entitlement. E.g personal rates 200, + childcare 200 = entitlement 400, less wages deduction 250 = uc payable of 150.