to give up work, warning, tax credits involved!

[monkeyfacegrace]

Ok all, Im getting myself all muddled so I cant think straight! Please help!

At the moment, I work 16 hours per week. My kids, 4 & 2 go to nursery while Im at work, and the government pay 80% (soon to be 70%) of my childcare.

I earn £400 wages, and get £660 every 4 weeks TC. My childcare costs are £450 per month on average for both kids (vary due to month lenghts, my 4 yr old grant etc). So I get £1060, minus £450 nursery, and the nursery and work are in the next town, so I spend £100 p.month on diesel to get there and back. Leaves me with £500ish(?!)

If I give up work, and pull kids out of nursery (except eldest who will do her 15 hours free), I worked out via TC calculator, I will get £450 per 4 weeks, then I will work a little 4 hour shift every week to earn an extra £100 p.month.

Now on one hand I feel like a scrote and a 'benefit grabber', but as my DH points out, Im actually saving the government money as they pay for so much childcare so I can work. My youngest will miss out on 1 1/2 days nursery that he gets now, but at the moment I feel like I never get quality time with him

What do you wise lot think?

Can you look for a job closer to home and with better (condensed) hours?

Getting a job in the future isnt just about your CV - being in a current post when you apply is a big bonus and it is easier to go full time within a company than it is get a new job.

Sounds to me like a good idea, why not, if it gives you better quality time with your children that is the main thing.

And, you wouldn't be 'saving' the government money because the benefits (TC, income support, any of it) are to help people through difficult times, not a permanent lifestyle choice.

I understand that youre not career minded but I'm sorry, that's just tough. If your husband could support you then it would be your choice to opt out of a career but with everyone else footing the bill I'm sorry but you need to be working your way out of a tough financial situation, not just taking the easy way out.

I am confused. You work for 16 hours a week earn 400 pounds and the government just gives you 660 pounds? For what exactly? Having children? No wonder the country is fucked.

Drizz - I see your point but I do think if the OP isn't happy it will rub off on her children. I was a higher rate taxpayer when I lived in the UK and now I work abroad I am still higher rate. I don't have a problem with my taxes going to support a family. In the long run it is my opinion that is better for society to have a parent stay home with the child(ren) if that is what works best for that family. Obviously, working 16 hours a week is a nice thought for me. I do those hours in a day on a frequent basis but I am career minded and I love my job.

Hang on, I might have missed something here. You work 16 hours per week and earn £400.00 / week? Is that net or gross? Either way, I am and honestly? With the things the way they are there is no way on God's green earth would I leave such a well paying (clearly flexible) job in today's climate!

Driz, as I said before, I understand your sentiments, but to work, I need to claim childcare element, so it costs the tax payer £660 every 4 weeks.

To not work, it costs taxpayer £396 (just got off the phone to TC advisor), so in effect, Im losing out on wages, and actually saving the government cash in a twisted way?

Im not, in any way, financially better off not working, so I wont be teaching my kids that not working pays.

If they stop TC altogether, Im fucked as I cant afford nursery

no no no , it must be £400 / month. Must be.

I think the £400 is monthly from the figures

Shirly, you've missed something
Its £400 per month min wage!

Hmm I dont know want2besupermum I don't think an unhappy mum is good for a kid. But I do think that todays concept of 'happiness' seems to be strange.

There are days where i'd be 'happier' to stay at home but it's hardly a real life option. Its eems too easy now to say 'oh I'm happier when i'm with my children' or 'I'm not career minded'

The way i see it there are lots of things you could be unhappy with but you have to make the most of what you have. I'd be happier if I won the lottery but as that's not forthcoming I go to work every day so my kids have a good standard of living and never have to overhear a conversation about how to pay the mortgage or how to pay for a school trip etc etc

But monkeyfacegrace if you worked full time you wouldnt need all that childcare money, and you'd be paying taxes. At the moment you are taking a lot out and putting nothing in.

woah, massive cross posts. I cannot afford 2 kids in nursery and work without childcare help. I just cant. £450 nursery bill to earn £400? Do the maths .

When they are at school of course I will work while I can and not claim TC.

But at the moment I must do something, and Im a good mum, DH works full time, my children are polite, happy and a credit to me. I own my home (mortgaged), and drive. I dont claim IS, DSS etc, just TC as I cant see an alternative. Nobody is going to pay me, an unqualified mum of two preschoolers enough to cover childcare.

I would be losing £100 pmonth ish (?), but gaining my kids first few years. Im not living off the state any more than I am now by working.

Also there are loads unable to work, on full benefits because there are not enough jobs (partly because both partners work now) not that I think both partners shouldnt work if that is what they want. So you are freeing a job up for people who claim alot more benefits than you, go for it op if this is what you want.

I'm sorry, as I say, I'm not blaming you you are entitled to the money. Whatever 'entitled' means these days.

Whenthey brough TC in I thought that it was to give back some of the tax you paid so that you could pay for child care with it thus enabling people with children to work - great idea. But when youre taking £600 out... and paying no tax (presumably as you earn below the tax threshold) How is that a 'Tax credit' that's just a hand out...

Driz, full time I would earn around £800 p.month. Then knock off tax, and pay £500 childcare. Figures dont add up!

And its a joint claim remember. I have a DH who pays tax its not just my figures.

Why dont you train to do something else. I do get a bit tired of people moaning tht they are 'only a shop girl' or 'i dont have a career'. Well wake up because none of us did until we did something sbout it, i re trained when i was 30 and pg with my second child and now earn a lot mor money in a job that i can work around dh and 3 dcs.
There are lots of paid vocational degrees you could do.
Or you could just give up your minimum wage job because it doesnt cover your childcare and too far away to make sense and claim some benefits off the state!

But if you don't work you can look after the children therefore no nursery fees and then I presume the taxpayer wouldn't have to give you any money at all.

Agree with lulumama.

Or do they then just give you money for having kids?

Er no londonone she'd get £450/month from the taxpayer if she stayed at home. (As well as the £100/month she'd earn by doing one 4 hour shift).

Presumably because her DH also doesn't earn very much, so they get "topped up" by the state.

People have different views on whether this is a good system or not.

Sorry but I say it again, I agree that it's not worth working when you do the maths, you might as well be at home with your children.

So do that.

I really understand the issue, and I do agree with londonone. I shouldnt get the £400 p.month, but if Im being told its mine to have, I accept it . But without it we cant pay our basic bills, so Id be back at square on, claiming for childcare.

BTW, there are no gym memberships here, or food shops (except £100 p.moth for family of 4), we really do live tightly.

Just to put my two pennorth worth in and disagree with a lot of people .Tax credits IMO are not the same as other benefits. Since the loss of the married man's tax allowance and the subsequent loss of being allowed to keep more tax earned the govt introduced tax credits to basically pay back to working families what they have paid in tax anyway IYSWIM? i don't see the point of running round like a blue arse fly if you are not any better off. In a couple of years time when both children are at school would make more sense to work as you won't be spending out on childcare.