Financial help in the early years

January 2015

Financial help in the early years is one of a series of Child Poverty Action Group in Scotland leaflets giving guidance to advisers and those working with families in Scotland about aspects of the benefits system of particular concern. Child Poverty Action Group promotes action for the prevention and relief of poverty among children and families with children.

Introduction

Growing up in poverty damages children’s health, development, education and lifetime opportunities. People working in early years and childcare are in a key position of everyday contact with families to pass on information to help maximise their incomes and make sure they do not miss out on vital support

This leaflet outlines what financial help may be available from pregnancy to school age, how tax credits can help you qualify and what other conditions you must meet. There are two types of tax credit; child tax credit (CTC) and working tax credit (WTC). You claim them together and may get either or both.

The information in this leaflet is not a full statement of the law, and individuals should be referred for specialist advice where appropriate.

When? What? Who qualifies? More information

From 10 weeks Healthy Start Pregnant women under the age of 18 www.healthystart.nhs.uk pregnant to scheme (regardless of income); child’s 4th Vouchers for milk, or 0845 607 6823 birthday fruit and vegetables, Pregnant, or responsible for a child worth £3.10 a week. under 4 and receiving a qualifying Children under the age of one can benefit: get two £3.10 vouchers (£6.20) a Free vitamin  week. supplements for  income-based jobseeker’s women during allowance Some regional health boards in pregnancy and  income-related employment and Scotland have made Healthy Start baby’s first year, support allowance vitamins freely available to all and for children  CTC (but not WTC), with an annual pregnant women. from six months. income for tax credits purposes of £16,190 or less

During Free dental Pregnant women, and new mothers Ask your dentist or phone pregnancy & treatment within one year of the birth. 0800 22 44 88. baby’s first year See also ‘Health benefits’ below for Dental treatment is free for children eligibility at other times. under 18.

NHS Minor Ailment Pregnant women, new mothers within Ask your local pharmacy Service – free one year of the birth and for children up www.communitypharmacyscotland. medicines on advice to 16, or under 19 in full-time education org.uk/ of local pharmacy - free medicines for common illnesses without prescription from GP. Prescriptions are free in Scotland.

From 11 weeks Statutory Employed women who have: Tell your employer and provide before expected maternity pay MATB1 certificate week of (SMP)  been continuously employed with childbirth the same employer for at least 26 If an employer dismisses a (EWC) – payable Some employers weeks, ending with the 15th week pregnant woman at any time, solely for 39 weeks may provide more before the EWC. or mainly to avoid paying SMP, they maternity pay under are still liable to pay SMP, providing the terms of your  average gross weekly earnings of she has been employed for at least contract at least £111 a week (2014/15 rate) eight weeks. She may also claim in a specified period. unfair dismissal.

www.gov.uk/maternity-pay-leave

Maternity Women who do not qualify for SMP but Claim on form MA1 allowance (MA) have: www.gov.uk/maternity-allowance MA can be topped  been an employed earner or self- up by income- employed for at least 26 weeks in related employment the 66 weeks before the EWC. The Telephone: 0800 055 6688 and support 26 weeks do not have to be Textphone: 0800 023 4888 allowance (ESA). continuous; and  had average weekly earnings of at least £30 a week in any 13 weeks in the 66 week period;  or have been helping out unpaid in their spouse or civil partner’s business for at least 26 weeks in the 66 weeks before EWC.

When? What? Who qualifies? More information

From 11 weeks Sure Start maternity Receiving a qualifying benefit: Form SF100 from Jobcentre or before EWC to 3 grant www.gov.uk/sure-start-maternity- months after the help with the costs of  CTC above the family element grant birth pregnancy or a new  WTC which includes the baby. disability or severe disability A health professional must also element sign the form. It is £500 usually only  income support payable for a baby who  income-based jobseeker’s Claim in time even if waiting for tax is the only member of allowance credit decision, then reclaim when your family under 16.  income-related employment awarded. There are exceptions to and support allowance this rule for multiple  births, and if a member of your family has a baby.

From 11 weeks Income support Women with little or no other Contact Jobcentre Plus before EWC to 15 income, not working 16 hours or Telephone: 0800 055 6688 weeks after the more a week, and partner must not Textphone: 0800 023 4888 birth be working 24 hours or more a week. Can qualify earlier if Claim form www.gov.uk incapable of work due to pregnancy. For a couple, the partner would usually have to claim jobseeker’s Lone parents may continue to allowance after the 15 week period. qualify until child reaches 5.

From 6 weeks Employment and Women with sufficient NI Can also qualify at other times due before EWC to 2 support allowance contributions, or with little or no to illness or if risk to self or baby, or weeks after the (ESA) other income, not working 16 hours if entitled to maternity allowance. birth or more a week.

From birth Child tax credit Families with children, whether in or (CTC) out of work, depending on income. Claim within 31 The claimant does not have to have days paid NI contributions or be a taxpayer. Claim on form TC600

Tax Credits Helpline Working tax credit Lone parents can qualify if were 0345 300 3900 (WTC) working at least 16 hours a week immediately before going on Textphone 0345 300 3909 maternity leave, and are still treated as in work during maternity leave www.hmrc.gov.uk/taxcredits for up to 39 weeks. You are still treated as in work for Couples with a child can qualify if up to 39 weeks during maternity working at least 24 hours a week leave and paternity leave. between them, and one works at least 16 hours a week.

When? What? Who qualifies? More information

From birth Nearly all families with children can Claim form CH2 can be qualify, except for some due to downloaded from Claim within 3 immigration status. www.hmrc.gov.uk/childbenefit months Child benefit is recovered via income Child Benefit Helpline tax at a rate of 1% for every £100 from 0300 200 3100 people earning over £50,000. It is still payable to all families, regardless of Textphone 0300 200 3103 income and should be claimed to protect the record.

From birth – Statutory paternity Working fathers or the mother’s partner Ask employer at least 28 days payable for 2 pay (SPP) for who: before you want your leave to start weeks within first fathers/partners if possible 8 weeks  have been continuously employed Payment by the by the same employer for at least If there is a dispute contact employer to the 26 weeks ending with the 15th week Statutory Payments Disputes Team father of a baby, or before the EWC, and until the child on 0191 225 5221 to the mother’s is born; partner.  have average gross weekly www.gov.uk/paternity-pay-leave earnings of at least £111 a week (2014/15 rate), in a specified period;  are caring for the baby or supporting the baby’s mother;

From 20th week Additional Working fathers, or the mother’s Ask employer at least eight weeks after the birth if paternity pay for partner as above and: before you want your leave to start mother has fathers/partners  the baby’s mother has been returned to work entitled to SMP or maternity If there is a dispute contact allowance usually for at least 20 Statutory Payments Disputes Team weeks, but this has stopped on 0191 225 5221 because she has returned to work;  the father or partner must have www.gov.uk/paternity-pay-leave been continuously employed by the same employer until the week before the additional SPP period begins.

Additional SPP may be paid until the end of the woman’s SMP period, but may start earlier if the mother has died.

When? What? Who qualifies? More information

Going back to Childcare element Working parents, depending on Notify the Tax Credits Office if you work of WTC income. start paying for registered childcare

Help with up to 70% Lone parents qualify if working at least Tax Credits Helpline of registered 16 hours a week. 0345 300 3900 childcare costs, up Textphone 0345 300 3909 to a weekly limit Couples have to be both working at payable of £122.50 least 16 hours, unless one is disabled, www.hmrc.gov.uk/taxcredits for one child or £210 a carer, in hospital or prison. for two or more children.

Childcare Some employers offer childcare Ask your employer vouchers from vouchers instead of cash pay as a employer salary sacrifice. If offered the choice of pay or vouchers, employees can use the Some employees may be worse off childcare calculator on accepting vouchers instead of the www.hmrc.gov.uk/calcs/ccin.htm childcare element of WTC.

From 6 weeks to Bookbug All children, regardless of income. Scottish Book Trust Primary 1 – free books at four 0131 524 0160 stages Scotland-wide scheme providing free www.scottishbooktrust.com books with no means-test.  baby bag Bookbags given out by:  toddler bag  Health Visitors  pirate bag for 3  libraries year olds  nurseries  pack for Primary  schools during the autumn 1 children term

From start of Free early Children who have a parent or carer Contact your local authority term after 2nd education and getting : childcare information service or birthday childcare place – • income support www.scottishchildcare.gov.uk 600 hours a year • income based jobseekers allowance (around 16 hours a • income related employment and week during term- support allowance time). • or severe disablement allowance •

Children who are looked after, under a kinship care order or with a Parent Appointed Guardian are eligible from their second birthday.

When? What? Who qualifies? More information

From start of Free early All three and four-year-olds whose Contact your local authority term after 3rd education and parents want one. childcare information service or birthday childcare place – www.scottishchildcare.gov.uk 600 hours a year (around 16 hours a week during term- time).

Starting school Free school All P1-3 pupils are entitled to free lunches school meals from January 2015 – no Access to free need to apply. school lunches for children For other pupils, family getting CTC Forms available from your local (but not WTC), with an annual income authority. School clothing for tax credits purposes of £16,010 or grants are also less or CTC and WTC, with an annual available under income of £6,420 or less, or during the similar criteria, four-week run-on after stopping work although this can vary between local Also if person responsible for the child authorities is getting:

 income support  income-based jobseeker’s allowance  income-related employment & support allowance  universal credit

Other financial Energy assistance Families with a child aged under 16 Phone Energy Saving Trust on help for families scheme may qualify for the enhanced package 0808 808 2282 with children Help with insulation, which can include help with central – up to age 16, or draught-proofing, heating. For more information, go to in some cases 19 and energy advice. www.energysavingtrust.org.uk/ and in full-time CTC above the family element scotland non-advanced education Child Maintenance Separated parents who need help to Telephone: 0800 988 0988 Options – make decisions about their child www.cmoptions.org/ free impartial maintenance arrangements. information and www.gov.uk/child- support maintenance/how-to-apply

Health benefits Receiving a qualifying benefit: If you are entitled via tax credits, Help with dental the Tax Credits Office will treatment, glasses,  CTC, or CTC and WTC, and your automatically send your details to fares to hospital for annual income for tax credits the NHS, who will send you a treatment, wigs and purposes is £15,276 or less, or credit-card style NHS Tax credits fabric supports  income support Exemption Certificate.  income-based jobseeker’s allowance NHS Helpline: 0845 850 1166

 income-related employment and See also NHS Scotland leaflet support allowance HCS2

When? What? Who qualifies? More information

Help in other Disability living Children with care needs can qualify Claim form DLA 1A (Child) circumstances allowance (DLA) from 3 months old (or earlier if online at for a disabled terminally ill). www.gov.uk/disability-living- child. Children with mobility needs can qualify allowance-children from 3 years old. See also CPAG’s leaflet ‘Benefits Receipt of DLA also means additional for disabled children and their child tax credit. families – a checklist’.

Funeral payment A CTC above the family element, or WTC Form SF200 from Jobcentre or grant to help with which includes the disability or severe www.gov.uk the costs of a disability element, or other means- funeral when a tested benefits or universal credit. Bereavement Service helpline: partner, child, relative or close Claim from date of death up to 3 Telephone: 0845 606 0265 friend has died months after funeral. Textphone: 0845 606 0285

Scottish People usually in receipt of qualifying Contact your local authority Fund grants benefits. A community care grant can be paid to families under exceptional pressure. A crisis grant may be paid to help with living expenses in an emergency.

Housing benefit People liable for rent, depending on Contact your local authority income. Can be paid whether in or out of work.

Discretionary People receiving but Contact your local authority housing payments not enough to cover rent in full. Guidance says families with school-age children may be a priority.

Council tax People liable for council tax, depending Contact your local authority reduction on income. Can be paid whether in or out of work.

Kinship care People looking after the child of an Contact your local authority. allowance extended family member or friend may See also CPAG in Scotland’s get a kinship care allowance from their leaflet, ‘Kinship care and benefits - local authority. Kinship care allowance the essentials’ can depend on the care arrangements, which can also effect entitlement to child benefit and child tax credit.

Universal credit People living in an area where Universal Credit helpline universal credit has been introduced Telephone: 0845 600 0723 (gradually from late 2013). Claims are Textphone: 0845 600 0743 initially taken from people looking for work and not getting one of the existing www.gov.uk/universal-credit means-tested benefits.

Universal credit includes amounts for Universal credit includes help with adults, children and housing costs. It childcare costs for any hours can be paid whether in or out of work. worked, and the amount will go up from 70% to 85% from April 2016.

Further information and advice

Child Poverty Action Group in Scotland 0141 552 0552 advice line for advisers on benefits and tax credits, Monday to Thursday 10am to 4pm, Friday 10am to 12 noon

Email: [email protected] email advice for advisers on benefits and tax credits

Website: www.cpag.org.uk/scotland/taxcredits for more tax credit leaflets from CPAG in Scotland

CPAG publishes the Welfare Benefits and Tax Credits Handbook, a comprehensive guide to benefits and tax credits for claimants and advisers.

CPAG in Scotland’s advice line is only for advisers. If you are having problems with your own tax credit or benefit claim and are in need of advice you should contact your citizen’s advice bureau or other local welfare rights service.

HM Revenue and Customs Tax Credit Helpline 0345 300 3900 (textphone 0345 300 3909)

Website: www.hmrc.gov.uk

© Child Poverty Action Group, January 2015 Child Poverty Action Group is a charity registered in England and Wales (registration number 294841) and in Scotland (registration number SC039339). Company limited by guarantee registered in England (registration number 1993854). Registered office: 94 White Lion Street, London N1 9PF

CPAG in Scotland’s Tax Credits & Early Years Project is funded by the Scottish Government.