TFC09100 - Employed person: relevant earnings thresholds
Childcare Payments (Eligibility) Regulations 2015, regulation 9(6)
At the date of their declaration of eligibility, an employed person must expect to earn on average a minimum of the hourly national minimum wage applicable to them, based on their age and work for 16 hours multiplied by the number of complete weeks in the 3-month period beginning with the date of the declaration of eligibility. If on unpaid leave from work, this will be 3 months from the date of return and if about to start work, 3 months from the date of commencement.
Example 1:
Kelly is 23 and employed part-time for 20 hours per week as a cashier in a supermarket.
The national minimum wage applicable to Kelly is £10.42 per hour. Kelly must expect to earn on average at least £166.72 per week for the 3 months following the date of her declaration of eligibility. Over the 3-month period, Kelly’s total expected earnings must be at least £2167.35 to satisfy the minimum income requirement as an employed person.
£10.42 x 16 hours = £166.72 x 52 weeks = £8669.44 / 12 months = £722.45 x 3 months = £2167.35
As Kelly expects to continue to work 20 hours per week at the national minimum wage rate during the next 3 months, she satisfies the minimum income requirement for TFC
£10.42 x 20 hours = £208.40 x 52 weeks = £10836.80 / 12 months = £903.07 x 3 months = £2709.20
Example 2
Jonah is 21 and works on a zero-hour contract at a garden centre.
The national minimum wage applicable to Jonah is £10.18 per hour. Jonah must expect to earn on average at least £162.88 per week for the 3 months following the date of his declaration of eligibility. Over the 3-month period, Jonah’s total expected earnings must be at least £2117.44 to satisfy the minimum income requirement as an employed person.
£10.18 x 16 hours = £162.88 x 52 weeks = £8469.76 / 12 months = £705.81 x 3 months = £2117.44
In the 3 months before his declaration of eligibility, Jonah’s working hours varied on a weekly basis between 5 and 30 hours, but on average, he worked 17.5 hours per week. He also expects to work the same or a few more hours in the 3-month period following his declaration of eligibility.
Even though Jonah expects to earn less than the relevant threshold during some weeks, his expected overall earnings for the next 3-month period satisfy the minimum income requirement for eligibility for an employed person.