To think I won't be able to notice any difference in earning minimum wage and £29k a year

[user1498403489]

I'm about to go from earning roughly minimum wage (after tax and including all benefits) and earning 29k before tax. Roughly 25k after tax with tax credits and other income.

My new job will require far more stress but is much more of a career job and will progress to roughly 34k. So it's worth taking but am I being unreasonable to think for now I won't really notice ANY difference in lifestyle or money?

I'm guessing you get tax credits as you have kids.
When they reach a certain age, the tax credits will stop. Do you still want to be on NMW?

Also is it not better for your self esteem to earn your income rather than receive benefits?

isnt that double?

Won't you be thrilled at the prospect of being able to provide for your children rather than letting others do it?

It just goes to show how entitled people are when it comes to benefits and that many take the easy option.

It's definitely better to work and I'm so glad I'm going back.

Just wondered if I'd even notice the difference

I've just set up a business and i'm worse off, financially, than before because whilst I'm turning a profit I lose carers allowance and tax credits.

Emotionally though, I'm much better off. The bit of stress is generally kind of nice. Its nice to be challenged. I like that I have control, that I'm not spending hours after each new benefits change threat is made trawling the net seeing how its going to effect me. I like that this should last beyond DC being 16 and that financially this is a starting point not a dead end one.

I could stay on benefits but I absolutely do not want to. I'd work even if I earned LESS. I am working now anyway. Just less hours and a lower wage. I just get more tax credits now.

I think if you have children the difference will be minimal, but it's well worth it not to be at the mercy of any changes in Universal Credit and and of course it's an investment in your future. You'll also be stacking up pension credits.

I have one child.

I went from 10 hours a week to 35 hours a week and the loss of tax credits plus childcare costs means I am less than £100 a month better off. It's pretty demoralising, I'm exhausted, I never see my kids, and no I don't notice any difference in our household income. But I guess it is better for me to be earning the money rather than claiming it! And at least when my husbands small xmas bonus comes we won't have to worry about how it will affect our tax credits etc. But yeh, it's a pretty shit situation to be honest.

Wow we have a household income of 30000. Is that really the same as minimum wage and benefits :( Surely not.

The "taper rates" are punitive and a real disincentive to earn more, imo.

If you get working tax credit and housing benefit, and increased earnings are subject to NI and tax, then you only get to keep a few pence for every extra pound you earn.

I hope you'll soon start to see a real improvement in your living standards, OP.

um....why on earth wouldn't you notice any difference when your salary will more than double? I notice a difference when I go up my miserable 1% each year! Granted it's not a huge difference but it is there.

Yes your NI, tax (and, if applicable student loan and pension) contributions will also go up but not enough to counteract the pay.

I put in £13800 (don't know exact full time minimum wage) and £29000 here (www.thesalarycalculator.co.uk/salaries.php) and it says that after tax and NI your take home pay will be more than ten grand more a year!

So...yes YABU to think you won't notice that

But at least you are providing for your family and not the state littlepond! That's so much better surely
No shit it may be hard, being tired missing the kids etc but that's life.....
Honestly this is where I hate the current benefit system. It should be there to help those who really need it and the points in life when they need it but not a lifestyle choice.

Shorter term it might not be a massive difference.

But consider 5 years time when you've got a pay rise maybe, maybe a promotion, the ability to move into higher positions in other companies.

On the non-tangible side there are a lot of benefits to having a career IMO. Greater confidence in your abilities, the knowledge that you can stand on your own two feet, setting a positive example for your child etc. Good on you!

I used to earn £25k but going part time and changing to a much less stressful role means I am earning around nmw. I don't get tax credits. There is a massive difference between what I earned and what I earn now

No, short term you won't see a huge difference. Over time you will though, and of course, extra security of that income. Friend has been through a similar change.

It just goes to show how expensive living costs are, rather than how 'generous' benefits are. Yes, tax credits do actually mean that employers can get away with the 'minimum wage' and people do not literally lose homes and starve as a result.

Also remember when your kids are 18, you are unlikely to get any benefits anyway.

Difference will be you will see payrises though. I've been trying desperately to get off TC for the last 8 years before I lose them in another 4. In effect I haven't had a payrise in all that time, TC's don't keep up with inflation so I'm living on the same money near enough as I did 8 years ago. It's beginning to be a struggle now and the worry is affecting my mental health. I would love to be independent of state benefits.

Not necessarily. I have not had a payrise for years.

Considering tax credits are constantly getting lower why would you want to be a position where you rely on them?

You'll get pay rises, you'll get tax benefits for using childcare vouchers, you'll get a pension. You might get sharesave options etc. Long term taking the career option is best.

Tax credits are generous for families but believe me if you don't start building that better career now, once your children grow up you will be screwed .

You may not notice the difference now, but when you get to retirement you will. State pensions etc are gradually disappearing into the ether. If you can possibly manage to work and put money into a pension fund you should do so, as there's no guarantee that anyone else will support you when you're older.

you'll also notice the difference as your child requires less childcare, and you get pay rises. It's tough, but putting the time in now can really bring long-term benefits.

Depending on your circumstances, tax credits can make the gap between minimum wage and a £30k salary very small and is one of the big flaws in the system. You can have more or less the same income with a full time professional job with travel and long hours as you do working a couple of days a week on NMW.