tax credits and housing benefit

lala_crazy

Was wondering if anyone could help me. I have just returned to work on an apprenticeship and am earning £95 a week. I am receiving tax credits (£207 a week) including the childcare element to help pay for my 3 year old's nursery place (about £50 a week). However when I applied for housing benefit, they used all of my tax credits, including the childcare element, as earned income. Is this right???? Does the portion of tax credits that go directly to pay for childcare count as income which goes towards deciding how much H/B i am entitled to?

HappyMJ

Yes it all counts but the amount you pay out in childcare costs "may" also be in the calculation too so it should offset the amount you get. Are you single and working more than 16 hours per week? If so, your income would then be £95+£207 minus £50 for a weekly income of £252 per week.

lala_crazy

Yep i'm single and working 35 hrs a week. But on the housing benefit entitlement letter they've stated my income as £260, which is the full amount of tax credits(£207-including the childcare element) and my weekly wage. The only part of my earnings they have dis-regarded is £42.10 out of my initial £95 weekly earnings. So they worked it out as £207+£95-£42.10, but I think that they should minus another £50, which is for childcare. So my total income should be £210 instead of £260.
They haven't counted child benefit as income and I have no problem with them counting the Child tax credits as income, but surly the element that is specifically for childcare, is not actual income as it gets paid straight to her nursery weekly???