Tax Credits Act 2002

12 Child care element

(1) The prescribed manner of determination of the maximum rate at which a person or persons may be entitled to working tax credit may involve the inclusion, in prescribed circumstances, of a child care element.

(2) A child care element is an element in respect of a prescribed proportion of so much of any relevant child care charges as does not exceed a prescribed amount.

(3) “Child care charges” are charges of a prescribed description incurred in respect of child care by the person, or either or both of the persons, by whom a claim for working tax credit is made.

(4) “Child care”, in relation to a person or persons, means care provided—

(a) for a child of a prescribed description for whom the person is responsible, or for whom either or both of the persons is or are responsible, and

(b) by a person of a prescribed description.

(5) The descriptions of persons prescribed under subsection (4)(b) may include descriptions of persons approved in accordance with a scheme made by the appropriate national authority under this subsection.

(6) “The appropriate national authority” means—

(a) in relation to care provided in England, the Secretary of State,

(b) in relation to care provided in Scotland, the Scottish Ministers,

(c) in relation to care provided in Wales, the National Assembly for Wales, and

(d) in relation to care provided in Northern Ireland, the Department of Health, Social Services and Public Safety.

(7) The provision made by a scheme under subsection (5) must involve the giving of approvals, in accordance with criteria determined by or under the scheme, by such of the following as the scheme specifies—

(a) the appropriate national authority making the scheme,

(b) one or more specified persons or bodies or persons or bodies of a specified description, and

(c) persons or bodies accredited under the scheme in accordance with criteria determined by or under it.

(8) A scheme under subsection (5) may authorise—

(a) the making of grants or loans to, and

(b) the charging of reasonable fees by,

persons and bodies giving approvals.