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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

tax credit cuts

63 replies

yellowdianthus · 02/06/2012 09:36

help! me and my partner are lucky enough to own our home but its very shabby as we cant afford to do it up much. the cuts to the tax credits mean we are seriously considering going on benefits full time which i never though we would ever be in this situation.
does the government not realise they are pushing people into this? we dont get free petrol on expenses etc and i live in a rural area.
i am struggling to pay the bills now, i dont want fancy things i just want to be able to pay the bills and have some kind of life. this is no life. its awful. i feel bad for my son but we had him before the recession and we both earned a good wage and now we dont. how do other people cope with this. i cant afford to heat my home or buy food sometimes. ive got alot of debt too : (

OP posts:
WhosPickleisThatOnion · 02/06/2012 20:19

True rainy. That's why I'd hold onto it as and debt management will mean they will have a poor credit rating for a while. Renting & renting something cheaper might be a good option.

WhiteWidow · 02/06/2012 22:24

Mrsscoob you couldn't be further from the truth. The majority of the girls in my year left school, didn't work, and had babies.

They get benefits and are able to afford: new clothing every fortnight, nights out once a week, brand new contract phones, holidays at least 2 times a year. They have houses (although council owned) that are immaculately decorated and furnished.

'well going to new York for 2 weeks lol!!! Luky girl'

'new sofa being delivered tomorrow to match my new flooring woo hoo x'

^ actual posts from these supposed 'poor' people.

It annoys the life out of me.

KateSpade · 02/06/2012 22:52

WhiteWidow I think we may live in the same town/have gone to the same school.

EVERY one is like that. I can count on my fingers the people that went to Uni or work from my year at school.

Mosman · 02/06/2012 23:09

Yes but when the babies are grown what will they do then ? The lady that we have to clean our office was reminiscing about when her children were young, the happiest days of her life, almost care free and now she's scrubbing bogs for a living.
I hope that won't be me, I'm sure that degree will help to make sure it isn't.

thekidsrule · 03/06/2012 02:02

oh here we go

to the benefit bashers,seriously go try it if its so fantastic

and as for the £26,000 cap it will only affect those on private rip of lanlord rents and the very very few that have many children not the average benefit claimant,so basically not many do get loads of money and "perks" that come anywhere near that level

im now waiting for the next "a friend of a friend on benefits has smoked salmon for breakfast and buys it from waitrose" comment

WhiteWidow · 03/06/2012 07:32

Mosman I don't think they think about that, they just keep having babies for now.

And thekidarule, this isn't about 'a friend of a friend' this is what I see with my own eyes, people I know very well and some that I'd even call friends.
They don't understand how I have less disposable income than them, when I'm working a 40 hour week.

Katespade I'm 20 now and one of only 3 girls in my year who have a full time job and no baby. It doesn't say much for society.

I honestly don't know how they live like that though. Yeah it must be nice and easy but I HAVE to work. I'd feel like a failure if all I'd ever done is sit on my ass and have a benefits baby. I've had one girl say she might have another so she can get a bigger house!

KateSpade · 03/06/2012 08:27

My friend actually did say that! WhiteWidow - she has now moved into a lovely new house.
I have had a baby - granted, but i went back to work at 10 weeks after & finishing the week before i was due working on an Internship as part of my university course. I just wouldn't have been happy giving it all up to live off benefits. One things certain, i would have more money!

Acumenoop · 03/06/2012 09:11

But to get Income Support she'd have to break up her home. Would you swap your husband for Income Support, Mosman? I would not.

The £26,000 cap is there to make people believe that's what you get on benefits. It's not what you get. DP gets the absolute highest rates of disability benefits and WTC it is possible to get and he doesn't get anything like that amount. Nothing near! And I'm including HB in that.

The £26k is about private rents in London. No benefit claimant is getting their hands on that sort of money, or VERY few. Outliers. Edge cases.

SoftKittyWarmKitty · 03/06/2012 09:20

I'm not sure about it being true that anyone earning less than 14k pa would be better off totally on benefits. I earn 12k pa and am a single parent. I don't get any child support as DS's dad has completely evaded the CSA but due to my low income I get some tax credits and a bit of housing benefit (my private rent is £500 per month and I pay about £420 of that myself). I also get free prescriptions and dental treatment which I'm very grateful for, but that's it - I'm not entitled to council tax benefit, income support, free school meals or anything else. If I'm completely honest I'm really struggling financially and am constantly robbing Peter to pay Paul. My work has seen some redundancies recently, so I went on entitledto.com to see what I'd receive if I were made redundant and in total it was less than my current income. If you combine that with the boredom and isolation of not working, the desperation of looking for work in the current climate and the lack of money, it's not an option for me and I'm hoping I'm not next in line for redundancy.

If you voluntarily leave employment your benefits can be withheld for a certain length of time (think it's 26 weeks but you'd need to check), so what would you live on in the meantime? Chances are you'd be put on Job Seekers Allowance anyway, so would have to actively seek work. What's the point of leaving a job only to have to look for another? Surely you'd be better off staying employed but looking for better paid/extra employment while you're still working?

As for debt, it's awful having it hanging over you while you're on a tight budget. I have debt from when I was on maternity leave that I've been paying off for the last five years - it's not a huge amount (especially now I've paid a big chunk off over the years) but as I can only afford to pay just over the minimum amount, it's taking ages. I have approx another 12-18 months to go, then I'll be debt-free. Someone else mentioned the Debt-free Wannabe forum on MSE and I second that, as you can post your SOA (Statement of Accounts) and they'll suggest areas where you can cut back and try to get you finances under control. If your debt is really bad you could see if you'd qualify for a DRO or IVA - there's lots of info on MSE about these.

Lots of people are in the same boat, OP - two weeks out of four I do a very basic food shop and we live off what's in the cupboards/freezer, and I've used the heating very sparingly this winter. However I'd say to look at your other options before taking such a major step. Go on MSE, do an SOA, then look at where you can cut back - change utility pI'm not sure about it being true that anyone earning less than 14k pa would be better off totally on benefits. I earn 12k pa and am a single parent. I don't get any child support as DS's dad has completely evaded the CSA but due to my low income I get some tax credits and a bit of housing benefit (my private rent is £500 per month and I pay about £420 of that myself). I also get free prescriptions and dental treatment which I'm very grateful for, but that's it - I'm not entitled to council tax benefit, income support, free school meals or anything else. If I'm completely honest I'm really struggling financially and am constantly robbing Peter to pay Paul. My work has seen some redundancies recently, so I went on entitledto.com to see what I'd receive if I were made redundant and in total it was less than my current income. If you combine that with the boredom and isolation of not working, the desperation of looking for work in the current climate and the lack of money, it's not an option for me and I'm hoping I'm not next in line for redundancy.

If you voluntarily leave employment your benefits can be withheld for a certain length of time (think it's 26 weeks but you'd need to check), so what would you live on in the meantime? Chances are you'd be put on Job Seekers Allowance anyway, so would have to actively seek work. What's the point of leaving a job only to have to look for another? Surely you'd be better off staying employed but looking for better paid/extra employment while you're still working?

As for debt, it's awful having it hanging over you while you're on a tight budget. I have debt from when I was on maternity leave that I've been paying off for the last five years - it's not a huge amount (especially now I've paid a big chunk off over the years) but as I can only afford to pay just over the minimum amount, it's taking ages. I have approx another 12-18 months to go, then I'll be debt-free. Someone else mentioned the Debt-free Wannabe forum on MSE and I second that, as you can post your SOA (Statement of Accounts) and they'll suggest areas where you can cut back and try to get you finances under control. If your debt is really bad you could see if you'd qualify for a DRO or IVA - there's lots of info on MSE about these.

Lots of people are in the same boat, OP. I only do a decent food shop twice a month and we live on what's in the freezer/cupboards the rest of the time, and I was very sparing with the heating this winter. Things are hard for many people but you are actually very lucky to have jobs and own your own house (a pipe dream for me). Please don't take such a major step without exhausting all other options as I'm willing to bet that being on benefits won't solve all your existing problems, but it will give you new ones.

SoftKittyWarmKitty · 03/06/2012 09:25

Not sure what happened to my post there Grin. Phone is playing up but I'm sure you got the gist of it, especially as I put most of it twice Hmm.

CardyMow · 03/06/2012 09:52

I've been on benefits for the last 11 months since my Ex-P walked out. I can guarantee you that you will NOT be better off. Your debts don't disappear just because you are on benefits - they still have to be paid, you just have less money left after you have paid them.

I am in a catch-22 situation where I will only improve my financial situation if I go back to work, but the child are costs will actually leave me WORSE off until DS3 is 3yo and I get the free 15 hrs a week AND my DS1 us at Secondary school, as I can only afford After-school care for one DC on top of Nursery fees on NMW.

So, I have 22 months until DS3 gets his 'free hours'. ( his birthday is end of Jan, so he won't get the free hours until he is 3y3mo after Easter holidays).

I'm facing almost another two years of being absolutely, totally broke, to the point where we can't afford gas for the heating and hot water, where when my sandals break, due to me walking 40 miles+ each week to do the school run, I'm hand-stitching them back together as I can't afford even a £6 pair from the supermarket.

Why in the name of all that us good in the world would anyone actively CHOOSE to live like this?!Confused

Mosman · 03/06/2012 10:00

Would you swap your husband for Income Support, Mosman? I would not.

I'd swap him for a packet of chips most day's too be honest, I used to think single mums were mental when I was young, now I'm not so sure.

lunamoon · 03/06/2012 10:14

Op- YANBU.
We will loose WFTC soon and it will be a very heavy loss to us.
If I didn't work then we would qualify.
Now taking into account the cost of getting to work, the free dental care and perscriptions etc, I will have to seriously consider whether my job is worthwhile.
I would much rather work, but this government has -or is going to- make it so that some families are worse off, with both parents working.

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