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Original poster

AIBU to be angry about the benefits system

690 replies

Daffodilsinfebruary · 07/04/2024 16:23

I have recently discovered by using a free, independent benefits calculator called entitledto that had I applied for Universal Credit over 2 years ago, me and my family would be over £16,000 better off.

I had assumed that benefits were for either single-parent families or people unable to work due to disability.

The majority of our savings would have been from claiming 85% back in childcare costs. We also would have had a payout of over £200 each month in addition.

For context, we bring in just shy off £4,000 a month. I thought this was a very reasonable income and we would be entitled to nil.

I feel angry that we did not know about this. A friend of mine who I met through our children attending the same nursery told me she claims 85% back in childcare costs during a conversation in which I complained of my childcare going up £150.

I did further research and 19 billion pounds apparently goes unclaimed every year.

I’ve never claimed benefits in all my life and worked hard to get on the property ladder.

should I be angry that we didn’t claim, or take it in my stride.

I wonder how many other families who could have claimed but haven’t.

OP posts:
Thread gallery
11
Workhardcryharder · 07/04/2024 21:07

hayless · 07/04/2024 20:07

It's Universal Basic Income by stealth.

Normalising the idea of handouts for those who don't need them.

And it'll never change, because with so many people receiving these handouts, any government seeking to remove them will be voted out.

I get nothing, by the way. My partner and I work full-time, up at 6am every day, to hand over large chunks of our incomes to the state, which spends a fair whack of that on handouts, or wastes it on crap.

Show quote history

Is this a joke?

MikeRafone · 07/04/2024 21:07

SheepAndSword · 07/04/2024 20:29

I don't think I understand UC. So whatever you receive whether it's PIP or DLA, housing, childcare, income etc it's all under the UC umbrella but protected separate 'pots'?

Thats the idea

but council tax relief - often called council tax benefit, doesn't come under the Universal Credit umbrella - as its a tax and its tax relief not a benefit

Housing benefit is only available in the main to state pensioners, though there are a few exceptions, and U.C has a housing element

U.C is 10 years late and still not everyone has been migrated onto this system.

OP posts:
MikeRafone · 07/04/2024 20:59

Ithought this was a very reasonable income and we would be entitled to nil.

that is the problem with a few things - people think they know the answer instead of checking the answer

nothingsforgotten · 07/04/2024 20:59

I'm afraid you will just have to take it in your stride. As I did when I discovered too late that I could have claimed a jobseekers allowance even though I had been paid out six months wages when I took voluntary redundancy (not in the UK before anyone tells me I'm wrong).

Original poster
Daffodilsinfebruary · 07/04/2024 20:59

So I used the Turn2us calculator which has better explanations than Entitled To and the Universal Credit sum comes from the childcare costs it is the ‘up to 85% childcare costs back’ element coming into play. Initially I thought that was on top of the universal credit award, but now I understand it’s not. I’m not sure what’ll happen with my Tax Free Childcare account if I claim Universal Credit. Or how the transition to this would work.
I would be better off on universal credit than tax-free childcare as that is capped at £500 every 3 months (£2,000) a year.
i have attached screenshots. Appears the SMI can be applied for as well if we wanted to and they included this in the overall reward. Again, seems complicated and when we sell house we would pay it back.

I know we are fortunate to be in the position we are in, and I was shocked that we were entitled to universal credit. I then felt angry that I hadn’t known as I thought it was 85% back on nursery fees which is a huge saving. My son had been attending for 3 years so I backdated that back. But I realise that was incorrect, as someone mentioned on here it might have only been since my second child was born last year that meant I was eligible.
I appreciate the benefits system but I believe it is for people with misfortune, as any of us can lose our jobs or get bad luck in our lives/ relationships breakdown/ loss of a partner. I know of people who seem to be very well off on benefits and don’t have the stress of working/ they have no incentive to go to work and earn a living.

AIBU to be angry about the benefits system
AIBU to be angry about the benefits system
AIBU to be angry about the benefits system
AIBU to be angry about the benefits system
OP posts:
Papyrophile · 07/04/2024 20:56

No, and I didn't begin to suggest that OAPs might have childcare costs but many still have mortgages.

PickledPurplePickle · 07/04/2024 20:55

Daffodilsinfebruary · 07/04/2024 18:21

Support for Mortgage Interest Loan£503.50 / monthly
Support for Mortgage Interest (SMI) is a secured, interest accruing loan offering support for paying your mortgage interest. To be eligible, you must claim a means - tested benefit – even if the only help you get is the SMI loan. Payments are generally made direct to your lender and support is worked out using a rate of 2.65% and a loan limit of £200,000. There is no help with capital repayments. You will usually need to wait 3 assessment periods before the SMI loan starts but there is no time limit on how long you can get a SMI loan for. For more information see

This clearly says you can apply for a loan, that accrues interest and needs to be paid back

TeaKitten · 07/04/2024 20:46

SwordToFlamethrower · 07/04/2024 20:44

Can't it be back dated?

Only if there is a good reason. OP does not have a good reason.

SwordToFlamethrower · 07/04/2024 20:44

Can't it be back dated?

gamerchick · 07/04/2024 20:36

Daffodilsinfebruary · 07/04/2024 16:34

The fact that 19 billions pounds goes unclaimed indicates a lot of people do not know

That's not quite right. It was 3.3 between 2022/2023. Not sure where you're getting your figures from.

Are you saying the benefits system is too generous?

Headfirstintothewild · 07/04/2024 20:36

You should check your award. If you earn <£1k per month you should be receiving more than £300 per month before even considering the childcare element.

Standard allowance. £292.11
First child. £269.58
2nd child. £269.58
Total = £831.27

Earnings minus work allowance
£1000 - £631 = £369

Earnings deduction
£369 x 0.55 = £202.95

Total of elements - earnings deduction = total UC award
£831.27 - £202.95 = £628.32

More if you are over 25, have a partner, one of DC was born before 6/4/17 or if you rent.

Babyroobs · 07/04/2024 20:35

SheepAndSword · 07/04/2024 20:29

I don't think I understand UC. So whatever you receive whether it's PIP or DLA, housing, childcare, income etc it's all under the UC umbrella but protected separate 'pots'?

PIP and DLA are paid completely separately to UC as they are non means tested but receiving those benefits for children can give additional disability elements as part of a Uc claim.

SheepAndSword · 07/04/2024 20:29

I don't think I understand UC. So whatever you receive whether it's PIP or DLA, housing, childcare, income etc it's all under the UC umbrella but protected separate 'pots'?

RuinedBack · 07/04/2024 20:29

Daffodilsinfebruary · 07/04/2024 16:23

I have recently discovered by using a free, independent benefits calculator called entitledto that had I applied for Universal Credit over 2 years ago, me and my family would be over £16,000 better off.

I had assumed that benefits were for either single-parent families or people unable to work due to disability.

The majority of our savings would have been from claiming 85% back in childcare costs. We also would have had a payout of over £200 each month in addition.

For context, we bring in just shy off £4,000 a month. I thought this was a very reasonable income and we would be entitled to nil.

I feel angry that we did not know about this. A friend of mine who I met through our children attending the same nursery told me she claims 85% back in childcare costs during a conversation in which I complained of my childcare going up £150.

I did further research and 19 billion pounds apparently goes unclaimed every year.

I’ve never claimed benefits in all my life and worked hard to get on the property ladder.

should I be angry that we didn’t claim, or take it in my stride.

I wonder how many other families who could have claimed but haven’t.

Firstly, you can't claim tax free childcare AND the childcare element of UC - you can only claim one of them

Secondly, the SMI is a loan to cover the interest on your mortgage repayments only. It has to be repaid. You are also only eligible for this if you ( and your partner) have received £0 income (wages) for 3 months. It also stops as soon as any income is received

I would also think it's extremely unlikely that you'll be entitled to anything on a joint £4000 a month income

schoolsuckz · 07/04/2024 20:23

It’s not correct. There’s definitely an error in OPs calculation. Also she hasn’t factored in the benefit they have had from tax free childcare (which you can’t claim on top of universal credit) and then run those numbers against the help with childcare via UC to see which is more beneficial to her and what the difference is, as it’s only the difference she has been missing out on.
I earn over 75% less than OPs household income and get around 300/month UC for two children plus help with childcare costs, so I don’t think she’d actually get the 400.
As pps have pointed out, help with mortgage interest is just a loan and gives DWP some kind of charge on the property I think, so most owners wouldn’t touch that unless absolutely desperate.
This is just a storm in OPs teacup - she may have missed out on a bit but it’s nowhere near the amount she thinks.
Frankly coming on here and saying you don’t worry about money and can afford luxuries, but you’re annoyed you think you’ve missed out on having more money, when lots of us are putting essentials back at the supermarket checkout - well, it is a bit tone deaf in the current climate.
To the others climbing on the “not fair” bandwagon - OPs post is just misinformation (not her fault). Don’t worry about it!

Letsseeshallwe · 07/04/2024 20:14

Daffodilsinfebruary · 07/04/2024 16:31

I am angry at myself, I was aware of the 20% Government top up on tax free childcare that I claim.

in 2019 before I got pregnant, I had a look to see if we were entitled to any help and we weren’t. So the government must have updated the criteria since then.

It did not dawn on me to check again.

Me and my husband do not struggle and have plenty of disposable income. We do not need the benefits to get by.

I suppose I am also angry that Tax Payers money Is being claimed by couples in the same position as us to have an even better lifestyle.

i thought benefits were for people who could not afford to live, yet me and my DH can afford to live and have luxuries yet would still be able to claim. Just feel this is wrong. Surely we should be able to keep more of our tax.

The system seems broken.

In that case I assume you won't be claiming it, because you're clearly 'better than that'

Rainraindontgoaway · 07/04/2024 20:12

Bellsandthistle · 07/04/2024 17:09

I’m angry that people bringing in £4000 a month are entitled to benefits at all.

Exactly this. If this is correct why are so many people complaining UC is unfair?

hayless · 07/04/2024 20:07

Youdontknowmedoyou · 07/04/2024 16:27

This is part of the reason why the benefits system is so broken. No one on that kind of income should need any benefits but, because tax credits destroyed the necessity to live on a normal wage, people expect so much more - landlords, service providers, retailers and manufacturers etc.

Edited

It's Universal Basic Income by stealth.

Normalising the idea of handouts for those who don't need them.

And it'll never change, because with so many people receiving these handouts, any government seeking to remove them will be voted out.

I get nothing, by the way. My partner and I work full-time, up at 6am every day, to hand over large chunks of our incomes to the state, which spends a fair whack of that on handouts, or wastes it on crap.

Vettrianofan · 07/04/2024 19:58

TeaKitten · 07/04/2024 19:43

How are they born into poverty if benefits give them ‘a fortune’.

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🤦‍♀️

Vettrianofan · 07/04/2024 19:56

Currently in receipt of several benefits including Child Benefit, UC, Child Disability Payment, Carer's Allowance and Scottish Child Payment.

It's up to you to look into what you are entitled to and ask for it to be back dated.

Headfirstintothewild · 07/04/2024 19:47

Lancrelady80 · 07/04/2024 18:41

OP, something has gone wrong somewhere. We are a 2 parent family, both working full time, with similar joint income to you. We have two children of similar ages. DS1 has a disability so we claim DLA for him, so arguably more likely to be entitled to support than you, as I think there is some kind of allowance included in the UC formula before they start deducting things. We are entitled to nothing more than Child Benefit. I guess probably tax free childcare might be something, but we don't actually need to use childcare so not relevant.

We, like you, are the Just About Managing. But the key thing there is that, at the moment, we ARE managing. Benefits should be for those that, without them, cannot manage.

If you/DH have an income of £4k and DS1 gets HRC DLA you should apply again when the rates increase for 24/25. At the moment the total of the elements (based on standard allowance, 2 DC, severely disabled child and carer elements) would be wiped out by the earnings deduction, but when the rates and work allowance increase at £4k you would be eligible.

TeaKitten · 07/04/2024 19:43

kitsuneghost · 07/04/2024 19:39

Having a child makes a huge difference
What would be a straight no childless can suddenly be a fortune if you have a child. Also puts you higher up the list for a council house for those that need one.

No wonder so many kids are born into poverty.

How are they born into poverty if benefits give them ‘a fortune’.

Yetmorebeanstocount · 07/04/2024 19:43

I feel despair that so many people think benefits should only be for the poorest of the poot, the practically destitute.
Whatever happened to social democracy?

There are a lot of very rich people in this country. Most of them inherited, they didn't work for their wealth.
IMHO the benefits (and tax) system should be there to re-distribute wealth. I would estimate that under a fair system over half of all families should be entitled to something.

kitsuneghost · 07/04/2024 19:39

Having a child makes a huge difference
What would be a straight no childless can suddenly be a fortune if you have a child. Also puts you higher up the list for a council house for those that need one.

No wonder so many kids are born into poverty.