OMG!

From January 2011, the Health in Pregnancy Grant will be abolished.

From April 2011, payment of a SureStart Maternity Grant will be
restricted to a first child (or children where the first is a multiple birth).

The thing is, your DH earns 16K but what kind of equiv. earnt income are you currently benefitting from? If you add up Child Benefit, Child Tax Credits, Housing Benefit, ? Council Tax Benefit, etc. etc. as a family you are probably getting the same as many two income families.

Also, if you are living in social housing, they have guidelines regarding how many bedrooms you are entitled to for the size of your family, something which many families with a mortgage only dream of. Maybe instead of wondering whether your DH should work you should be planning how you could help him to increase your family income, after all you will both benefit from the increased personal tax allowance (if you choose to work) so as a couple you won't pay any income tax until you have a joint income of nearly 16K.

Must say I feel a little sorry for people living in social housing that once met their needs for family accommodation but which is now too big. However, as a country we have a real shortage of social housing so it is right that people should only be entitled to live in a property size which matches their current needs.

When my children were babies I found that multi-packs of baby grows/vests cost less than my 10 year old's clothes now even allowing for rate of growth and they did both my children and were passed on to friends after.

Breastfeeding is free and formula is (or at least was) available at a discount at baby clinics and again cost less then the food my 10 year old eats.

I used washable terry nappies with both mine so I don't know how much it costs if you chose to use disposables.

Do you have a job, Loudlass?

Id hardly say the baby element is a bonus for having a child under 1. They grow so quickly at this stage and will need clothes that fit. Whereas once they reach a year old the clothes do tend to last a bit longer. Then there is the cost of formula (if thats how you choose/need to feed your baby) and nappies. Im pregnant with twins and will only get the baby element for 1 of them for a few months.

That you're considering your DP NOT working says alot - both about the welfare system that we have and your own values.

Cutting corporation tax will help businesses stay afloat and stimulate growth in the jobs market - maybe your DP might consider that and hold out for a better-paid job instead of giving up and going on benefits?

Why should other people pay for your lifestyle choices?

plus there will be a £150 increase in the child element of CTC too

You'll still get your HIP and you'll still get child benefit for the new baby, you'll just not get a 'bonus' for having a child under 1.

By my calculations HB is restricted to just over £1,700 a month - there won't be many people getting that much I'm sure.

Loudlass - I don't think you should worry too much re; rent.
They are capping the payments to a MAXIMUM of £400 per week for a property with a maximum of four bedrooms.

Re; "baby element" of ctc, considering your husbands wage, then yes, you are going to be shafted.
However, from next April he will be taxed on £1000 less than this year, so it may, more or less, even out. Hope that helps.

I know I too am quite gutted.