I have a client who is currently in receipt of JSA. Her daughter is working P/T and has childcare costs of £110 pw, and claims Working & Child Tax Credit which includes an element for childcare costs. There is no scope in the legislation for the childcare costs to be set against the Non-deps income, hence the income used to calculate the NDD is gross earnings, CTC, WTC + CB and puts the daughter at the highest level of NDDs. I applied for a DHP arguing that this had to be an oversight in the legislation - given the drive to get single parents into work and support with childcare costs, it hardly seems logical to penalise wokring non-dependents with childcare costs. To no avail. I am considering suggesting judicial review - does anyone have any knowldege of whether this issue has been raised before as a problem area and whether there is any acknowledgement that legislation overlooked the possibility of Non deps having childcare costs?

I had a similar case a year or so ago and also advised they went for a dhp. They didn't recontact so I think it was successful. The non-dependant deduction income levels make no allowances for either any dependants that s/he may also have (ie children) or outgoings such as childcare. I think it would be worth challenging the dhp decision as if they are not goign to give a dhp in cases liek this it's hard to imagine when they would.