dd off to uni, tax credit slashed and council tax bill hugely increased. what can we do?

(39 Posts)
NoahVale Sun 18-Sep-16 09:03:42

i worked out our incomings and outgoings but now they are screwed

need some advice, aside from sitting DH down and forcing him to work more hours, working more hours myself.
not keen on Stepchange.
remind me how to Really budget
tia

insancerre Sun 18-Sep-16 09:05:09

Why can't you work more hours?

Genuine question as its what I would do on your situation

I understand why the tax credits has dropped but why has the CT gone up? Was you getting a discount for her?

There will be people around soon to help, I'm not very good with spreadsheets and things.

nancy75 Sun 18-Sep-16 09:05:42

How many hours do you both work?

NoahVale Sun 18-Sep-16 09:08:19

tbh we need to keep our income on a certain amount due to dd starting uni.

budgeting advice really appreciated.
i am working more, off to work extra shortly.
dh trying to, looking but unsuccessful.
so work aside - any tips?

NoahVale Sun 18-Sep-16 09:08:48

we were getting council tax relief and housing benefit.

AnchorDownDeepBreath Sun 18-Sep-16 09:11:18

Are you both working part-time? Have you done a budget of your new income and outgoings - is there a shortfall already or is there just less than you're used to once everything has been paid?

With so little information, budgeting advice is hard - it'll only really be the usual, buy in bulk and shop at cheap places, look for reduced clothes, new clothes from charity shops, use comparison sites for lowest prices, keep energy/water usage as low as possible, cancel Sky as soon as you can, keep mobile phone usage low and reduce contract price if you can...

NoahVale Sun 18-Sep-16 09:13:58

not done a budget yet because the council tax bill only arrived on friday.
yes, i guess I just have to sit down and work it out.
thanks.

Muddlewitch Sun 18-Sep-16 09:18:10

Have you reapplied for housing/council tax benefit with the lower tax credit figure, or have they based it just your dd not living there and so no longer being a dependant?

NoahVale Sun 18-Sep-16 09:21:37

I think they have based it on her not living here. I am not sure They get their information from tax credit but they also wrote to ask our circumstances.

noeuf Sun 18-Sep-16 09:23:53

However does the council tax work? Is it reduced because of the tax credits so it's gone up because they go down? It seems odd otherwise for it to go up?

MephistoMarley Sun 18-Sep-16 09:26:50

Noef she would have been entitled to certain benefits for having a dependent child living in the house. No dependent child - no benefits. Income down and outgoings up.

noeuf Sun 18-Sep-16 09:32:42

Oh okay thank you.
But linked to receiving tax credits or housing benefits?
I thought council tax went down if you lived alone (one adult) so was confused.
Op it sounds a bit crap then. Are you short to pay bills now or just managing with less?

mollie123 Sun 18-Sep-16 09:36:22

Someone over 18 who lives with you may affect how much Housing Benefit and Council Tax Support you get because they are expected to pay towards housing costs and Council Tax. They can be:
relatives
friends
children who have left school or college and who you no longer get Child Benefit for.
Not sure how it works where a child goes off to University -the assumption quite rightly is that the person who is no longer eligible for child benefit is now a non-dependent and could be earning mega-bucks so is expected to contribute. Do check with your local council as if your daughter is leaving home to go to University she should not be considered a non-dependent.

NoahVale Sun 18-Sep-16 09:42:12

oh really, she should not be considered a non dependent? I shall look closely at my letter

NoahVale Sun 18-Sep-16 09:46:11

the precise wording is
Including this non-dependant on your claim does not affect your award for this period.

lljkk Sun 18-Sep-16 10:37:55

I wonder if it's crazy whether OP could get a term-time lodger to go in the departing girl's room.

AndNowItsSeven Sun 18-Sep-16 10:50:49

It's because your applicable amount changes if you have a dependent child. Ie if you earned £1200 a month for example and had a child you would receive HB but if you didn't have a child at home you would have to earn less to be entitled to HB and CTS.

AndNowItsSeven Sun 18-Sep-16 10:51:24

However if your income is that low your dd should have received the full loan?

NoahVale Sun 18-Sep-16 11:01:44

yes she did receive the full loan. but our council tax bill is now huge, swings and roundabouts. as much as we would love to be able to provide her with money, reality is different.

NoahVale Sun 18-Sep-16 11:04:33

Bright side, although we receive a now tiny council tax rebate, £3 per week, if we wavered that we would no longer need to keep receiving their excessively long letters, Just how many trees!

NoahVale Sun 18-Sep-16 11:06:07

I am going to send my youngest dd up the chimney wink

MephistoMarley Sun 18-Sep-16 12:40:37

Is she leaving an empty bedroom? What about taking foreign students on short term stays? It's covered under the rent a room scheme so won't be liable for tax and won't affect tax credits if you still get any

NoahVale Sun 18-Sep-16 15:53:51

no, no empty room, she shared with her sister.

AppleJac Sun 18-Sep-16 16:04:16

I take it your doing all the usual things to save money like...

Shopping at Lidl/Aldi
Not having cable tv
Cutting back mobile contracts as much as possible
Sharing a car rather than having one each?
Cancelling any gardners and window cleaners and doing it yourself
Shopping around for the best deals on gas, electric etc

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