To think that tax credits and the like actually seem quite generous?

[MaliceInWonderland78]

My wife has recently given birth to DC3. She is currently on maternity leave. She works 30 hours a week for 19k per annum. Having checked things out on "entitled to.co.uk" it seems, were I to croak it, or do a runner, she'd be entitled to universal credit of approximately 200 per week. I'm not sure if this is correct though (it seems quite high).

If that is the case, how on earth are people needing food banks? I don't mean it to be patronising, I was just shocked that the figure was this high. As a tax payer, I'm hoping this is wrong. My calulations are as follows:

Wages - 300
Universal Credit - 200
Child benefit - 44

In addition to this, the council tax bill would be reduced from 160 pcm to approximately 45.

Is this peoples' real-world experience?

Well I suppose if you croaked it, to enable your wife to carry on working she'd have to fund childcare for 3 children? That's going to eat into a big chunk of that 544 per week. Probably almost entirely.

I think a lot of strain comes from people having to pay so much in rent costs.

If that is the case, how on earth are people needing food banks?

Not everyone gets tax credits! I don't as I don't have children.

What about those who don't work... They won't get wages aswell as tax credits.

You have a very simplistic view. However, yes, since she would have 3 children she would be entitled to a fair bit (hence the call for benefits capping at 2 children etc).

But what about rent? I get tax credits as I work part time but the bulk of my income goes on rent. I get housing benefit top up but I still pay approx £400pcm in rent. Council tax in my experience doesn't go down as much as you say either. I pay a lot more than that for a 2 bed flat.
It IS possible to live reasonably well in the shortish term on tax credits. The problem arises when you need to move/replace car/want to have a holiday etc.

And like Titti says, childcare costs can be crippling.

Food banks I thought were a short-term thing, you can't live off them. So if your benefits were stopped, or whilst waiting for them to come through for example.

Childcare around here is about £50 a day, cheapest. Rent is about £800 a month cheapest. Things are expensive, makes sense to me.

Actually, looking at your calculations, I dont think that can be right (unless you are including a big chunk of childcare in your figures). I earn half that your wife does and get a LOT less than £200 a week.

I must say, I don't think it's correct (but it's what the calculator said). I ticked the box which said we didn't pay for any childcare (as we havea support network) and there was only an option to say if you rented or owned your house (mortgaged or not).

I didn't mean the comments around food banks to come across that way. Sorry.

Do you own or do you rent? Housing costs are included in universal credit. What about child care? Have you taken that into account. Benefit levels look generous however there are certain things which then have to be paid like rent, child care. What you need to look at is how it compares to your current income because outgoings may go up not down if anything happens to you.

DP and I earn 25K between us and have one child. Living in the South East that's a pittance.

We get £750 A YEAR.

So no, not generous at all

We own the house (with a modest mortage) It didn't ask for any further detail.

No childcare as such (not that has to be paid for)

It's less than we currently get, but she'd by no means be poor (not that I'd want to see her on the breadline of course)

It's calculated as if she's on maternity leave so only 'earning' SMP, surely. She wouldn't be entitled to wages + £2k pcm.

Plus it's universal credit not tax credits, totally different things although UC contains TC and WTC I think

It takes a while for these benefits to come through though. Last time dh was made redundant we received no money as the company had liquidated, and it took 14 weeks to process our tax credits. It took six weeks to get job seekers, and without help from family we wouldn't have been able to eat.

I was talking to someone locally who runs a food bank, they have had a family coming for 11 weeks because their benefits have been stopped in error and are taking ages to reinstate. He has also had a woman about to give birth left destitute, and in need of the food bank, and one woman so hungry she opened a tin of beans, ate them with her fingers, then burst into tears.

I hate it that people are so desperate in my own town, it is not right that Amy of those people had to use a food bank but they have been left with no choice.

We did it as if she had returned to work (working 30 hours per week for 19k) Tax credits came out at 165 pew week. Universal Credit (for some reason) about 40 per week more.

I guess I'm just interested to here if those in similar circumstances actually get that amount.

I can't see how she would get such a big council tax reduction if she earns £19k pa. But if you are so bothered by it you could always move out so your wife can cope with 3 children on her own. Out of her £300 wages and £500 tax credits I'm assuming your wife would have to pay for the mortgage, utilities, food, clothing, travel expenses. Why don't you try living on that amount now and see how easy it is.

It didn't ask for details of mortgage costs because it doesn't help with pating a mortgage you are on your own with that plus any upkeep and maintenance. While there are two of you it is easier to work round support networks but if only 1 person it is harder. It's also harder to find time for everything when only 1 person taking the strain. I will say though that for 30 hours work 19k is a decent salary and more than most get.

Are you working?

When I worked 20hrs with 2dc's I got £9 a week and my wage was alot less than your wifes amount but maybe my DH earned alot more than you. .

I'm now a SAHM with 4 dcs and don't get £200 a week in tax credits.

Well we get £120 a week for dh working full time for just over £15k and two dc. We don't get any help with our council tax which is £105 a month. We manage - I wouldn't say we were rolling in it ! I can't work due to a number of issues including problems with my own health and lack of suitable childcare and dh working odd and long hours. We only really manage because we have a very small mortgage due to my previously high earning career.

If dhs wage (retail management but in a rural area) paid a decent living wage we wouldn't need tax credits, but it is a very low wage for the amount of hours and stress involved in his particular role.

^£200 tax credits (not 500)

Many who use food banks have no dependent children, and therefore don't get tax credits. Duh.

Why do you hope its wrong?
I think with 3 dc you could be getting almost as much as that without childcare. Its income dependant though.
I think the highest we got with 3 dc was £168 tax credits and about £44 cb, but dh income was extremely low during this time.
We only have one to claim for now so nowhere near this.

would be careful with that website

Its told me I am entitled to repay child benefit but i know I am not as neither DH or I earn over £50k

That seems like an unrealistic amount. I left my h and had 3 children (we have since got back together) and on £12k a year, I received £130 a week in tax credits, plus an element of housing benefit and council tax benefit but would have been below £200 a week. So for £19k the figure has to be quite a bit less. I found those entitled to sites to be completely inaccurate, even the tax credits calculator, gave me a figure about £40 a week more than I actually ended up receiving.

I think also that you may find that it those who on paper earn a good wage but with high housing costs and no entitlement to tax credits or any other benefits, those are often then ones needing to access food banks, or older childless/free (children grown up and left home) couples who are left with pennies after essential bills paid and the choice between heating or food.