I have the kind of family that many people think shouldn't need extra help from the Government

[MogadoredMemoo]

I would like somebody to tell me how we can reduce our outgoings. We are the kind of family who people seem to think shouldn't need any financial help from the government. there seems to be an attitude that we just need to tighten our belts a bit. So I am really interested in how people think we will manage if out tax credits are cut.

Dh earns just under 25K. I really seriously cannot at the moment due to health problems.

We currently get £80 a week in TC and this helps us keep our head above water. But under the new system it looks like we wont get it any more.

So with DH salary and CB we have a monthly income £1772.00

Mortgage £700
Council tax £83
Car Insurance £58
Gas £60
Elec £80
Maintenance for DSD's £250
Petrol £200
Contents and Buildings ins 67.00
other bits ie TV licence, broad band phone, pet insurance £100
Nappies £20

That would then leave us just £154 each month to clothe and feed 3DC and to feed 2 dsd's.

How are we suppose to manage on that? I'm not saying that we should just be given hand outs but why can't the government do other things to help like keeping petrol cost lower. we just about managing at the moment but we are going to be in shit if these cuts go ahead. We will end up losing our home.

Even worse I suspect there are thousands of families like us out there. The ones trapped in the middle, not earning enough to survive but earning too much to get any help.

thats the problem,tax credits and the like are seen as part of the fanilys income and people budget including these,most i suspect dont budget on just a wage,and dont expect these benefits to be withdrawn

i think some people on the cut of point income are going to struggle so i dont think YANBU

So your family income is under 25,000? The government aren't talking about stopping your tax credits are they? I thought that was for HRT initially, then possibly those earning over 25,000.

I think the problem for middle-lower income families is in housing costs, actually. Whether mortgage or rented, an awful lot of people are seeing most of their budget go on that.

The house you bought with a £700 a month payment is way out stretching yourselves.

The cannot blame the government for overstretching yourselves.

and you cannot blame the government that you had three children

and step children

Sorry, that should say just over £25k

a £700 morgage seems good,dont see how thats stretching things

£700 a month mortgage if for a 2 bed terrace with £110k mortgage. I also worked full time when we had the children so could easily afford it. I got ill, I am still ill and can't work.

mrsgetonwithit, I agree that the OP's mortgage repayments look like a stretch for her. But we don't know the details of her situation. But for example where I live, my 3 person family would struggle to find anywhere to rent for less than that monthly repayment figure.

I don't think we did over stretch with the mortgage, we bought the cheapest house we could as it was.

to be honest when i was pregnant and had a toddler and husband was made redundant several times, and interest was at 15%, there were no such things as handouts willy nilly

we just had to get on with it or go under

if your a family of 5 plus 2 sdc's living one one income on 25k, I don't think anyone thinks you shoals not receive cb and tax credits.

Can sympathise, all seemed OK when OP was working, can't predict ill health. Not sure what can say really save for perhaps get rid of the pet? which I know sounds awful

I hate this attitude of you had the kids so suck it up. Shit happens, people lose jobs, people get ill.

If we put off having kids thinking of all the crap that might happen nobody would ever have them.

Mrsgetonwithit - my family survives on less than £25,000 a year.
We were lucky enough to buy our house just before house prices went up. Our mortgage is £450 a month. We could find anything but a one nestlings flat in our area for that amount. We could rent our tiny house out for over £700, but that would be pointless, as we still couldnt find anything for less than that.
Is the op responsible for the ridiculous house prices today?

Is there anything you can do (or are doing already) to get your health back so you can work/earn?

Can your dh find another higher paying job? Or do some extra work for extra pay? When is he due a pay rise?

Can you do any work from home if you are unable to work on location?

Janies, but how do you go with it if you literally can't cut back anymore.

If we lose the house so coucil will ended up housing us so surely that would cost more?

Took me so long to type that that others beat me to it :o
OP - yanbu!

CTC is being cut significantly from April.

We will have household income of (approx) £30,000 next year, including CB for first child, assuming I can get a part time job from January.

We are entitled to £135 tax credits per year according to the online calculator. The baby element of CTC is going and the income thresholds are being significantly lowered. Luckily we don't need to rely on this - it just seems a little ridiculous that we would have been all in all around £1,000 better off if we had had child a year earlier. Thats just one of those things I know. But wierd.

To OP: Can you cut your mortgage payments for a while if you think you may have a problem - eg go to interest only for 6 months while you work things out.

Have you checked your car insurance and utility providers are as low as possible?

Have you averaged council tax out? Don't forget you normally have 2 months off council tax - usually Feb and March, so if you haven't allowed for that you will have a little extra those months.

If you are so ill that you cannot work, are you in receipt of DLA? It is actually quite difficult to get, contrary to what you read on here, but with a proper diagnosis and your doctors' completing their part of the form (yes, everyone, a doctor has to sign off on these forms, they don't just dish it out), you could be in receipt of this.

Petrol might be a way you can cut back.

Potty training your youngest if possible.

You car insurance and petrol costs seem high. I'm sure you've tried calling round to see ifyou can get a cheaper rate?
Is there a possibility for changing to a diesel car? We did this recently and it's saved about 30% on our fuel bills.

I didn't think they were planning on reducing tax credits for your income bracket though, I thought they were just cutting it for higher-rate tax payers?

janiesmum - that's a spectularly unhelpful comment.

DH's company is at risk of going under so there are no pay rises or over time.

I have mental health issues that have seen me hospitalise and am still struggling. Hopefully one day I will be well enough to go back to work but atm I'm not.

are u sure your income is right?

on 25K you should get about 1600, then plus TC of about 320 plus CB of about £200 for 3 children - that comes to at least £2100.

But gas and elec is high as is your buildings and contents insurance and you may be able to save if you shop around here.

If you can't cut back then one of you is going to have to find a way to work more, unfortunately, or get a higher paid job.

You are responsible for 5 children and only one of you working on a low wage - of course it is going to be difficult.
Do you have to have a car? You could get rid of the TV, broadband and pet and save there.
Can your dh get a second job or a higher paid one?

Expat, no I don't get DLA. I've looked into it but it seems that I would be highly unlikely to get it.

Petrol is high purely because of DH's journey to work. we don't use it for any other reason. Also insurance is a tad higher because its a 7 seater so we can get all the kids in.

We have tried to extend the term of the mortgage to make the payments cheaper but the bank won't let us because it would take us past DH's retirement age.