Section 103: Recoupment by local authorities of cost of providing day care
248.Section 103 enables local authorities to charge parents receiving tax credits for local authority-provided childcare places. Subsection (1) limits the current scope of section 29(3) of the Children Act 1989 to services provided by local authorities under section 17 or section 18(1) or (5) of that Act, i.e. childcare for children in need.
249.Subsection (2) adds a new section to the 1989 Act which ensures that people in receipt of Income Support or income-based Jobseeker’s Allowance pay no charges for services provided under section 18(2) or (6) (childcare for children not in need), in addition to the services under sections 17, 18(1) or (5).
250.This section does not require local authorities to charge parents on tax credits. Authorities will still be required to have regard to parents’ ability to pay when deciding upon any childcare charges.
