I had a query where a client has contacted the Inland Revenue as they are receiving Working Tax Credit & Child Tax Credit. The client is single parent and has become incapacitated and is now receiving Incapacity Benefit. The client told us that the Inland Revenue are going to pay child care to the client as part of working tax credit.

After looking into this, the CPAG hand book states that
"This element can be included...if you are...

* a member of a married or unmarried couple...
-one of you is engagedin qualifying remunerative work and one of you is incapacitated..."

Has anyone else come across this before?

I hate to say it but I'm sure they've got that wrong.
If she isn't a member of a couple she clearly doesn't have a partner engaged in paid work for 16 hours plus.

However it is possible to be treated as working 16 hours plus during a period of temporary incapacity, and she is a lone parent she would automatically be entitled to the childcare element:

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 6
Periods of illness or incapacity for work

A person who is in receipt of Statutory Sick Pay, (or would have qualified but for self employment), short-term incapacity benefit at the lower rate, Income Support on the grounds of incapacity for work or National Insurance credits on the grounds of incapacity for work is treated as being in qualifying remunerative work, provided that person normally worked at least 16 or 30 hours a week (whichever applied) immediately before beginning to receive any one of these benefits.