Hello. I am also starting a PhD in Oct and have researched this extensively so I hope I am able to help you.
Are you a single parent? If so this is relevant if you are not, it still applies if your partner is working too earning under the WTC threshold for three children.
Under the current system (tax credits) any money received as part of a tax free bursary or stipend is NOT counted as income for TC purposes by HMRC.
However as you know, as a PhD student you are NOT classed as an employee but a student. If you are not working and just earning your stipend then you will still be entitled to claim CTC but not WORKING TC. To receive childcare help you must get WTC (known as the childcare element and they pay up to 70% on a sliding scale depending on level of income).
Your best (financial) plan possible would be to work 16hrs per week term time only (tc consider this too count for every week throughout the year as long as it is a perm contract) alongside your PhD. This will obviously be HARD but financially you should be ok.
In this situation you would have your earnings from your 16hr a week job, wtc and ctc and you would keep all of your stipend with no deductions as it is not taxable income. So assuming your stipend is the basic level like mine this means £1191 per month kept without affecting your tax creds. Would this cover your childcare costs for 3 kids?
In terms of other benefit income, housing benefit DO take every penny of stipends into account so you would not get this to help towards rent, if you are a tenant.
For the majority of local authorities PhD students DO qualify for council tax relief but some place restrictions on writing up so you would only be exempt for year one and two of your PhD. You have to be registered full time to be exempt.
In the situation that you did find a 16hrs a week term time job then you will probably be breaking the terms of your PhD contract. How much of a problem that is depends where you are. I was honest in my interview about having to work throughout to keep a roof over our head and the supervisors were very supportive. Here is what my institution say on this :
- officially PhD students are not supposed to engage in paid work exceeding 6 hours a week (average over 52 weeks) this means paid work for your university.
- PhD students are responsible for their own time and workload and use their discretion to decide if outside work would impact their study or not.
- We have absolutely no way of officially checking up whether you are working elsewhere and for how many hours.
So, in my situation, apply common sense. As a single parent who has been studying full time whilst working full time for seven years I am used to working at night so know I can make it work at least for semesters 1 and 2 of year 1.
After this I will reassess and if I can't do it then will have to either move to cheaper accomodation or go part time.