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will I get less money dropping hours?

(10 Posts)
fs2013 Wed 15-Jan-14 10:05:48

Hi I work 23.5 hours a week and as a lone parent I get tax credits and housing benefit. I want to decrease my hours to 16 as I am currently studying and I am not able to fit everything in. (I work in an after school and breakfast club). My boss is happy for me to do this but when I check benefit advice it seems I would not get any more benefit as a result. Does anyone know about this? Is 16 hours the same as say 29 hours benefit wise? I know it changes if you go below 16 or over 30, is that it? Thanks so much if you can help

Rockchick1984 Wed 15-Jan-14 10:42:02

You would get extra, but it won't be as much as the extra wages you have been earning.

fs2013 Wed 15-Jan-14 11:22:39

OOh thanks for replying! I really don't know what to do at the moment..need the money but also want a career one day & I'm studying for the future. So hard to make the right decision! If it's even a bit more it might help, but a big drop will be hard x

Rockchick1984 Wed 15-Jan-14 11:39:21

It's roughly 50p extra tax credits for each £1 lost through salary that you will get, so if you lose £100 you'll get £50 extra tax credits smile

fs2013 Wed 15-Jan-14 11:48:50

Are you sure? That seems too good to be true!

Rockchick1984 Wed 15-Jan-14 11:56:59

It's not exact but it'll be somewhere there roughly. Have you put your (new) details into the turn 2 us calculator? Just input it all as though you're already doing the reduced hours and see what it comes out with for you smile

lougle Wed 15-Jan-14 12:00:42

Be aware that there is a disregard of £2500 for a drop in income. So the first £2500 loss will be ignored.

Rockchick1984 Wed 15-Jan-14 12:06:36

Ah, apologies I wasn't aware of that - my experience is from going the other way when DH got a pay increase and our tax credits dropped.

fs2013 Wed 15-Jan-14 19:09:40

Thanks lougle x

SoonToBeSix Sat 18-Jan-14 00:11:54

The £2500 isn't actually ignored it just isn't taken into account until the following tax year.

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