True with the HB and CTB - although a LOT of people on "full benefits" (ie not working at all) have t top up their housing benefit out of their other benefits.
I used to have to top up £60 a month, but I got lucky with this house and found a LL that would accept housing benefit who also had a rent that was at the LHA threshold.
The "better off" calculations that they do when ou're on benefits always mildly amuse me.
They show you that you'd get X amount of wokring tax credit, plus your salary, plus 80% (soon to be 70%) of your childcare paid for.
But fail to point out that you'll lose your free school meals (I know I really feel it when it's school holidays and have to feed them lunch as well as breakfast and dinner - so obviously would be the same if you're making/paying for their lunches at school), you'll lose some of your housing benefit, you have to top up the childcare costs, you have to get to work.
They say "oh look you'll be £100 a week better off working X hours a week"
But the reality is that the working poor aren't £100 a week "better off" than when they were on benefits as they fail to factor in the extra costs.
I know I'll be in roughly the same financial position as I am now when I start working, not that it's going to stop me finding work, but I can imagine for some who don't understand the self esttem/bettering yourself that comes from working, the added stress of working just doesn't seem worthwhile.
The system is all f*cked up (and I say that as someone "in" the system right now).
They kick you back out to work, and then leave you to it. There's no sliding scale. There's no way of taking that 12hr a week job to get your foot back on the ladder and improve future job propsects, you're dropped in the poo while they reassess your tax credits, your housing benefit, etc.
I'll confess I'm terrified about how I'll cope financially in the "gap" between ringing up to cancel current claims and the news ones sorted out - I've even gone to the extent of getting a credit card (tucked safely away so I don't get tempted to use it for other stuff) to make sure I've got something to tide me over.
I'm worried about childcare, and at the age of just turned 10 am already preparing DS1 to be spending potentially whole days at home in the school holidays (though he'l be 11 when it happens - forward planning and all that).
It's scary looking at jobs that come up that only pay £8-10k and wondering what will happen if they squeeze the benefit cuts even more so that the Caps and things apply to those getting WTC as well as those not working.