Tax Credit childcare disregards for couple in HB where one gets ESA

Hi everyone,

Can I get a view on Tax Credit childcare disregards for couple in HB where one gets ESA

FACTS

Couple both getting WTC as self-employed workers 30 hours per week.  3 children so get childcare and CTC.  They also get HB.  One needs to go in for urgent heart surgery and has made a claim for CESA.

ISSUE
HB have said that the childcare disregard for HB is not applied during the first 13 weeks ESA assessment phase.  Is that correct?

It is not how I read CPAG - ‘You can still have a childcare costs disregard while off work sick for the first 28 weeks while you are getting SSP, ESA or NI credits for limited capability for work, provided you were working at least 16 hours a week immediately before you started getting one of these benefits’ (Reg 28(2)–(4) HB Regs)

checked the regs - Reg 28(2)–(4) says ‘an employment and support allowance’ not ‘an employment and support allowance with the WRAG or support’ - but have I missed something?

Very grateful for any input!

Many thanks

EKS

I think you are not missing anything and that the local authority are mixed up here - they seem to be assuming the couple have to fall under reg 28(1)(c) where one must show they are incapacitated (defined as including requiring main phase ESA under Reg 28(11)(d)(viii)). But the couple should fall under 28(1)(b) as both being in remunerative work - as by getting ESA (or credits) immediately after actually working, one member is treated as engaged in remunerative work for up to 28 weeks.

Many thanks Stuart.