guaranteed childcare assistance payment (gcap)
who can get it
Guaranteed Childcare Assistance Payment (GCAP) is a payment available to young parents who are:
- getting Young Parent Payment (or 16–19 and included as a partner of a specified beneficiary)
- in full-time education, training or work-based learning, and
- the main caregiver for a child aged either:
- under 5, or
- over 5 if the school has advised they can't start until the beginning of the term straight after their fifth birthday.
Or, young people who are not on a benefit, and:
- under 18
- attending secondary school full-time
- the main caregiver for a child aged either:
- under 5, or
- over 5 if the school has advised they can't start until the beginning of the term straight after their fifth birthday
- either living with, and supported by your parents or guardian, or married or in a civil union or de facto relationship.
Note: if a young parent has a partner, there needs to be a good reason why their partner can’t provide childcare. For example, the partner is studying, working or actively seeking work.
approved programmes
Approved programmes include licensed early childhood education and care services, like:
- kindergartens and preschools
- childcare centres and creches
- playcentres and playgroups
- Kohanga Reo, Punanga Reo, Aoga and other programmes with a language and culture focus
- approved home-based care.
what guaranteed childcare assistance payment covers
GCAP covers childcare service costs, up to $6.38 an hour and up to 50 hours a week for each child and can be paid for the hours that young parent's are:
- in full-time education, training or work-based learning (including travel time)
- working part-time (for up to 15 hours a week)
- meeting your youth activity obligations, if you have them (eg attending a parenting course).
GCAP is usually paid straight to the early childhood centre or service.
Young parents can't get both GCAP and the Childcare Subsidy for the same child.
GCAP can't be paid for an informal carer. If young parents need help with the costs of informal childcare, check to see if they can get Flexible Childcare Assistance.
20 Hours Early Childhood Education
A young parent can only get GCAP for the same hours they're getting 20 Hours Early Childhood Education (ECE) if:
- their child is at a home-based educator, and
- the home-based educator is charging a top up payment for the same hours as 20 Hours ECE.
Home-based educators may charge the young parent/caregiver a top-up payment to cover the difference between their normal hourly rate and 20 Hours ECE.
20 Hours ECE | Ministry of Education
Optional charges and donations
Young parents can’t get GCAP for optional charges and donations requested by their childcare provider.
Term breaks (including Christmas holidays)
If young parents are still eligible for GCAP after a term break, it can be paid to ensure their child retains their place at the childcare centre.
Absences
GCAP will continue to be paid (if an absence fee is charged) if the young parent or your child is temporarily sick or away.
what you need to do
Supporting the young parent to apply
The young parent and their childcare provider need to complete separate sections of the GCAP application form.
Once the form is completed, scan and upload the form to ART and send a Task to YSSU.
If successful, The young parent will will get a text message telling them that they have had a change in their payments. The text message will refer them to the Work and Income website where they can view their MyMSD to check their payment information.
If GCAP is declined, the young parent will be sent a letter.
Guaranteed Childcare Assistance Payment application | work and income
Christmas period review
You'll need to talk to young parents between 1-21 December and determine if they plan on returning to education, training or work-based learning the following year.
If so, the young parent can continue to receive GCAP if the childcare facility charges a fee to keep the child's place.
Young parents who work
A young parent who works during the December holidays can continue to receive GCAP for a maximum of 15 hours per week. If a young parent works full-time they are no longer entitled to GCAP however they can apply for other forms of childcare assistance.
Contact YSSU directly to discuss how the young parent can continue to receive financial assistance for their childcare arrangements when they are in employment.
ART admin
You'll need to send a Task to YSSU telling them if GCAP should continue or not. YSSU will amend GCAP payments as appropriate and send you a notification confirming any changes in payment. If payments continue, the young person will get a text message. If payments stop they'll get a letter.
Annual review
The young parent will be sent an annual renewal form to complete on the anniversary date of when their GCAP assistance was first approved.
The young parent will need to to return the GCAP review form along with their supporting verification documents to you.
You must verify the GCAP annual review form and any supporting documentation in accordance with the Minimum Processing Standards.