Talk

Advanced search

more money working p/t than f/t due to benefits and tax credits?? This can't be right!

(24 Posts)
practicallystupid Sat 13-Dec-08 22:39:05

Am i mad, or is there more financial incentive for single parents to work part time?
On entering employment after i finish my course i am set to earn 24,000 gross full time, i worked out that after council tax and ridiculous childcare fees because i'm not entitled on that amount to hardly any tax credits or childcare help etc, i'd be able to save around 7 grand of that at MOST (ppl keep scaring me how expensive kids are, but i have a very frugal lifestyle and buy EVERYTHING second hand if i can...and i survive happily on 15 pounds a week for food.)

But working part time, i'd be earning around 8,000 on around 16/18 hrs a week in the same job, BUT i'd be given a little over 13000 in tax credits and income support for use on childcare etc! So i can basically stick the whole of my earnings in investments. AND be awarded full housing benefit and a significant reduction in my council tax! As someone who has always believed that hard work should be rewarded i am shocked that the british welfare system undercuts working mothers who want to be out there full time (nothing wrong of course if you want to stay at home) but in reality doing so actually leaves me with LESS money the more i earn!

Is this true for you? Has anybody else experienced the reality of my calculations? Have i missed something?

I suppose when i gain more experience to move up the salary ladder in a couple of years, or when the child is old enough for school, it may be in my interests to work full time but it seems pointless now.

The worst thing is that in two years i will HAVE to go into full time employment on a training contract, but oh well, maybe my mother will have mellowed enough to take care of my kid by then.

Sigh...
This is particularly difficult for me, i'm 24, this is an unwanted pregnancy, i despise being pregnant already as i am sick and putting on masses of weight because i can only eat chips and chinese takeaways and am constantly having attacks of hyperglycemia, and right now all i'm thinking about is how much i could be putting away to by a sustainable woodland with if i didn't have to fork out money for baby things and childcare and stuff for this unexpected little person...i was too scared to have an abortion. I'm sure if i don't let it become a brat I will see the benefits...just not sure what the point of having kids is yet. :-(

practicallystupid Sat 13-Dec-08 22:45:12

think i just went on a rant, 'unwanted' means 'unplanned' - if i really didn't want it i probably would have gone through with the abortion. I'm still early pregnancy so it's a matter of coming to terms with the changes going on in my body and the fact i didn't plan on being a single mum when i had such a promising future. I've already talked to everyone under the sun, it's fine, it's doable, i'll probably find it rewarding in time, it's just a shock is all.

lou031205 Sat 13-Dec-08 23:07:20

sorry, but lol at "i can only eat chips and chinese takeaways"

what is to stop you from making your own healthy chinese food smile

lou031205 Sat 13-Dec-08 23:08:49

And, yes it is likely that what you are saying is true re: working part-time.

oldraver Sat 13-Dec-08 23:12:58

Not sure about the 'significant reduction i council tax..I have nearly 10 grand a year, £2,600 of that CTC and my reduction in council tax isnt worth the hassle of claiming

UnfortunatelyMe Sat 13-Dec-08 23:13:07

yes its right. stupid, but right.

Tinkerbel6 Sun 14-Dec-08 10:04:55

OP your calculations are slightly wrong, you wont be entitled to IS when working 16+ hours so wont be entitled to full housing or council tax benefit, you will be claiming child and working tax credits and child benefits.

I hope that you start to eat healthy, if you cant do it for yourself do it for your unborn child.

sticksantaupyourchimney Sun 14-Dec-08 10:18:48

Erm, I rarely say this but my trolldar is beeping here. OP, I am really sorry if I'm wrong, but there has been an absolute rash of posts about a young woman with an unplanned pregnancy, all articulate but fairly hysterical and all seeming to be set up to invite either ringing endorsements of abortion or some sort of unlikely rant to prove a point someone's trying to make.

Coldtits Sun 14-Dec-08 10:34:54

Well, I don't know how you've worked that out. I work 16 hours a week at the minimum wage, pay about 60% of my rent and ALL my council tax. I think you need to look through your figures again.

As someone who believes hard work should be rewarded, I'm sure you'll have a different opinion on which is the harder option when you actually have your children.

Simplysally Sun 14-Dec-08 10:41:46

I get the max discount on council tax and I earn more than that.

I presume this baby has a father so why not get him to pay some maintenance if you feel so strongly about not taking it from the taxpayer in the form of tax credits etc. It takes two you know.

Coldtits Sun 14-Dec-08 10:43:48

Hmmm. Maybe I need to check through MY figures again!

NotDoingTheHousework Sun 14-Dec-08 10:46:38

Message withdrawn

Simplysally Sun 14-Dec-08 10:48:17

I'm the only "adult" in the house which why I get that . I don't have help with my rent.

Coldtits Sun 14-Dec-08 11:34:40

Ohhh you mean the single adults thing? I see what you mean now, I thought you meant CT benefit - I get the single adult's thing too!

IllegallyBrunette Sun 14-Dec-08 11:37:51

I will be doing 22 1/2 hours and will have to pay all of my council tax, but will still get just over half of my rent paid.

fluffles Sun 14-Dec-08 11:40:42

You're not feeling very warmly towards your little one yet but perhaps when you do you'll find that working p/t until the child is 3 might be best for you and your child as well as financially... working full-time as a mother of a baby is not easy.

When the child is 3 you get nursery vouchers for childcare and then after that there's school which is free. i don't know how the calculations work out after the age of 3 but at that point i would hope f/t work would be more financially rewarding.

Aimsmum Sun 14-Dec-08 11:58:29

Message withdrawn

IllegallyBrunette Sun 14-Dec-08 14:17:44

You have to pay all of your rent Aimsmum ??

I hope the figures I have been given are right. If i ended up having to pay all of my rent then i'd be going back to work for no more than I get now.

mashedup Sun 14-Dec-08 14:53:18

I work 25 hours per week, pay 80% of my rent, all my council tax, have two DCs, get WTC and CTC, but no Income Support, and although I manage, I'm certainly not rich. I thought if you were working more than 16 hours per week, you couldn't claim Income Support.
I'm better off than if I claimed benefits, and I enjoy working. I will be going f/t in the New Year, but will have to pay full rent, and my tax credits will be reduced.

allgonebellyup Sun 14-Dec-08 15:21:47

i work 30hrs a week and am only on 12k a year, i do get £178 a week WTC at the moment for my 2 dc, but that will go down to £129 in April.

i want to start teaching next year, but as a full time, mega stressed out teacher i will only receive £50 a week more (in wages)than i have to live off now with quite a laid back job/hours.

Makes no sense to me.

allgonebellyup Sun 14-Dec-08 15:26:19

oh and i get no help paying my £850 mortgage on my own.

Aimsmum Sun 14-Dec-08 21:15:49

Message withdrawn

AMAZINWOMAN Sun 14-Dec-08 21:42:56

I want the name of your takeaway!!

How can you spend £15 per week on food and live on takeaways?

IllegallyBrunette Mon 15-Dec-08 12:03:41

Ahh i see Aimsmum. I am also in a HA property but my rent is nearly £400 a month, perhaps thats why I will be entitled to some help.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now