Can the childcare element be claimed in respect of a new baby whilst the parent is on maternity/paternity leave? The 2004/5 Edition of CPAG's Welfare Benefits & Tax Credits Handbook page 1331 says that it was anticipated that from April 2004 this would be possible but I've never seen anything come in confirming that this is the case.

Yes - parents are eligible for WTC and the childcare element while on leave and receiving a relevant payment. Here's an extract from the Inland Revenue leaflet about childcare costs (WTC5):

"If you are receiving Maternity Allowance, Statutory Maternity Pay, Statutory Adoption Pay or Statutory Paternity Pay, we treat you as being in work from the date you start receiving these payments, as long as you were in qualifying paid work (of at least 16 or 30 hours, whichever applies) before going on the leave.

If you are becoming a parent for the first time, Working Tax Credit is available before the baby or child arrives if you were aged 25 or over and worked at least 30 hours a week before the maternity, adoption or paternity leave began. You can claim Working Tax Credit, including the childcare element, from the child’s date of birth or
placement for adoption, as long as you usually worked at least 16 hours a week before the maternity, adoption or paternity leave began."

Thank you. My copy of WTC5 was out of date!

Ros.