Housing Benefit and Childcare Vouchers on SMP

elsappelle

Good Morning!

I am after some advice. I am currently on SMP with the £139 a week. My employer is also currently still paying my Childcare Vouchers.

I applied for Housing Benefit and they originally messed up my income taking my income when I am actually working. They have now relooked at it and reduced my income to still over £900 a month.

My question is could they be taking my "free" childcare vouchers as income? Should they be doing this?

Many thanks!

Alice_Holt

How does the payment of Childcare Vouchers show on your wageslips?
Have you supplied the LA with your current wageslips, or are they getting the earnings data from the HMRC electronic system?
See:https://england.shelter.org.uk/housing_advice/housing_benefit/how_housing_benefit_is_calculated
https://www.oxford.gov.uk/info/20176/benefits_information/383/childcare_costs_affecting_your_benefit_claim

AFAIK earnings would be your SMP and not include the childcare vouchers (perhaps your local CAB could confirm this).
Your income for HB purposes would include tax credits. Are CTC's the difference between the £900 and
your SMP?

I would ask your LA for a detailed breakdown of their calculations, get them to explain why they have your income as £900.
Then you could check this (and your applicable amount) with your local CAB.

elsappelle

Many thanks for your reply.

I have two lines:
Childcare Vouchers -£243
Notional Pay CCV SMP £243

I have worked backwards from the £900 odd number and it is my SMP, a back dated payrise that was paid in November, a small payment to pension from this, Childcare vouchers and tax back as it is under the personal allowance.

The only thing I am querying is the Childcare Vouchers as I thought they wouldn't be included. My tax credits are on another line, and those are fine.

Hmm maybe the CAB is the route to go then!

Thank you

jetplane

Did you give HB proof of your child care costs as these will be disregarded during the calculation? However your vouchers would affect the amount of childcare disregard. Do you receive working tax credits as this is also income? HB will use the figure that you are actually paid that week / month when calculating income and you will have to keep them up to date with new payslips.

I think you need a professional to check that you have given the LA all of the necessary info and look at the actual decision, calculations and how non cash vouchers are treated.

Alice_Holt

To have childcare costs deducted from income for HB calcs, the claimant has to be working 16 hrs a week. But, I'm not sure if this applies when taking SMP or not.

If it does then, the LA having included Childcare vouchers as income (if this is correct), should then deduct the relevant childcare costs.

More questions I'm afraid!
My sense is that the LA are not treating it correctly, but I can't be certain.
Your local CAB is likely to have a (bulky!) book on HB & CTr, and I'm sure the answers will be in there.
http://shop.shelter.org.uk/publications/guide-to-housing-benefit.html
Your may want to ask for a photocopy of the relevant pages to quote to your LA, if their calculations are wrong!

BTW: Shelter have a enquiry line - 0808 800 4444 (but like the CAB is likely to be busy!!).

Housing_Benefit_Officer

From your gross wages we would deduct tax, national insurance and 50% of any pension contribution. Voluntary deductions for child care vouchers are not deducted from your income. So any deductions from your wages for childcare vouchers wouldn't be taken into account.

When you pay child care, for housing benefit purposes, if you pay £200 per week towards childcare and £100 of this is covered by child care vouchers, only £100 you pay yourself is counted as child care costs.

So payment of child care vouchers from your income isn't counted as a deduction from your income for housing benefit purposes and paying part of your child care costs with child care vouchers isn't counted as a child care expense.

elsappelle

Sorry it has taken a while to reply!

I do not currently have any childcare costs. My eldest started school in September, so her nursery fees stopped by the time I finished my enhanced maternity from work.

My employer pays for the vouchers when I am on SMP. I get my SMP plus childcare vouchers. I signed up to the vouchers before i went on maternity leave just because my employer paid for them when i was on SMP. It means when i go back to work i have a little bit set aside to pay for the first month or so.

Interesting though that the childcare vouchers won't be seen as childcare costs for Housing Benefit. I need to look at that especially to see what I am better off doing once i return to work.

laurlou25

Hi elsapelle,

Did you get anywhere with housing on this. Im on maternity now and still get vouchers even though my childcare has stopped. They have recalculated mine to include the vouchers as income when previously they was not.

it was my understanding that as they are a tax and ni free benefit and a non cash voucher they would NOT be included as income. But having zero childcare costs I guess complicates things.

Did they change your calculation or continue including it as income?

Thanks

Laura