Application portal for free childcare and tax-free childcare

It’s always been the case that the same online form is used when applying for free childcare and tax-free childcare (TFC) which has always led to confusion and queries from parents worried their TC or UC will stop if they claim free childcare. However, now that applications have opened for working parents to apply for 15 hours free for 2-year-olds starting in April the form has been tweaked and I think the wording for parents on UC is very confusing (worse than it was).

It asks if you get TC or UC with the options you can select being “TC, UC, none of these”. There’s a warning box telling you that you can’t get TFC at the same time as TC or UC. The messaging then says “if you currently receive UC but will cancel your claim for this benefit if your TFC application is approved, please select ‘none of these’ below”.

You’re not given an option at any time to say you don’t want to claim TFC and only want to apply for free childcare. When you say you get UC the information on the screen states:

“You do not have to change, stop, leave or inform HMRC about anything. After you accept and send your application, you will get a message about it. You may then need to contact the DWP to discuss your UC options”

The declaration pages references “your application for free childcare for working parents and TFC”

I’ve managed to speak to someone from the Childcare Service Helpline who said that when they receive the submitted application the system flags that they’re ineligible for TFC if they’ve said they get TC or UC. Which is all well and good but how on earth is a parent applying meant to know that? And also, what if someone gets a nil or minimum UC award and actually wants to claim TFC because they’ll be better off?

I think HMRC have missed a massive opportunity to tweak the application process so that free childcare and TFC can be completely separated out (or at least improve the information given).

There’s also an issue with parents who currently receive TFC and want to apply for the free childcare having to wait until their next reconfirmation window before they can apply which is going to leave some parents without a code in time.

It’s incredibly frustrating and something that could easily be fixed. I’m just wondering what other advisers’ experience is and what advice you give to parents in this situation?

Does anybody have, or know how I could get access to the process HMRC follow when processing applications from parents who get TC or UC? Would it be a FOI?