Legislation – The Childcare Payments (Coronavirus and Miscellaneous Amendments) Regulations 2020

These Regulations amend regulation 15 of the Childcare Payments (Eligibility) Regulations 2015 (S.I. 2015/448) and insert new regulation 16A into the Childcare Payments Regulations 2015 (S.I. 2015/522).

Regulation 3, amending regulation 15 of the Childcare Payments (Eligibility) Regulations 2015, is added due to the occurrence of the coronavirus pandemic. It specifies a new higher maximum level of income of £150,000, for eligibility under the Childcare Payments Act 2014 (c. 28) for critical workers whose working hours have increased directly or indirectly as a result of coronavirus, and so whose income may consequently exceed the existing limit of £100,000. The new limit applies during the tax year 2020 to 2021.

Regulation 5 amends the Childcare Payments Regulations 2015 by inserting new regulation 16A. This regulation allows for a permitted payment from a childcare account to include a payment to an intermediary or between intermediaries for the purpose of paying a childcare provider.

A full impact assessment of the effect that the introduction of the childcare payments scheme would have on the costs of business and the voluntary sector was published on 10th June 2014 alongside the draft Childcare Payments Bill and was updated on 20th November 2014. It is available from the gov.uk website at https://www.gov.uk/government/publications/tax-free-childcare-impact-assessment. It remains an accurate summary of the impacts that apply to this instrument. An updated impact assessment in relation to secondary legislation was made on 30th March 2017 and is available at the gov.uk website.