Tothink it's utterly ridiculous that a 6k raise would only work out to be £100 per month

[theduchessstill]

I'm just feeling really hopeless at the moment. I earn a decent enough wage and know that I am very fortunate compared to many. However, as a single parent who receives no maintenance I am solely responsible for myself and two children and a mortgage, as well as having to save for a further pay out for ex when youngest comes of age. We do ok, but I have little to no savings and think about money constantly.

I have seen a job that pays 6k more than my current one and is a natural next step for me. 6k seems like quite a step up, but have just put the figures into a calculator and it seems that, taking into account the fact it would take me above the CB threshold, I would be a measly £100 per month better off.

Pisses me off tbh. As I'm in a public sector role I very rarely get other pay rises and when I do they're minuscule. I also think the fact that I would lose CB when a couple with a combined income well above my single one would keep it is an absolute disgrace. It just seems things are never going to get any better for me so just having a little rant, a pointless one as there's obviously no guarantee I'd get the job even if I went for it.

Oops, posted too soon!

Whilst I can understand the frustration of "only" having an extra £100 cash in hand at the end of the month, the net gain is actually far greater (around £300/350) but OP has already said that the rest will go in to her pension - that's a flipping hefty pension contribution and will undoubtedly be to her benefit in the future. OP specifically said she was disappointed to only have the extra £100 per month as she'd hoped the wage increase would improve her quality of life, so I'm not sure why PPs are advising her to contribute more to her pension, which will leave her with even less in her hand.

And for those advising salary sacrifice as a way to beat the system and retain benefits - give your head a wobble - benefits (including CB) should be a safety net for those in need, not those who can already afford a holiday and to own their own home. Would you seriously advise someone on £75k to salary sacrifice £25k a year so they could claim CB? If not, then don't advise OP to do it, there's really no difference at a fundamental level.

I think you're getting a hard time here OP

I think what you are saying is that it is frustrating to get an on-paper increase of £6000 that actually dwindles to £1200 after all the other bits and pieces have come into play. Of course it is! How would it not be?!

I hear you OP. My pay rise this year of £1k has left me worse off with my student loan increases.

Our house hold income is decent (I'm the higher earner) yet with a week until payday I am panicking how I am going to do the food shop this weekend.

i think your solcitor screwed you over

why are ypu paying his debts and having to give hima pay off in a few years-makes no sense

and cm is no connected to any divroce settlement here he should be paying his share no matter what

Why do people need to be so fecking horrible and judgy all the time? It doesn't matter what kind of money the OP earns or whether she works in the public or private sector, she has a right to have feelings. I too would be a bit naffed off if a 6k pay rise only equated to £100 extra in my pocket per month......as I think would the majority of people on here.

I agree OP. I've worked since my teens, studied whilst children were young and at times worked 3 jobs. Now nearing the top.of my profession (well as far as I am likely to go at my age) and similar things happening to me. Pension and tax/superann changes mean I am taking home less this year than I did last year despite a pay rise. Posters saying " you are on a good wage compared to us" are missing the point - it's not a race to the bottom. Tamara fekn eccleston spends 5k a month on dog grooming! The top 1% are still creaming off the most while everyone else struggles. Note the guy who raised the pension age to 67 has retired at 61 with a pension pot of millions. Yet the underdogs still squabble amongst themselves instead of getting angry at a system which gives most to those who need it least.

These threads always go the same way, even when as OP has done, the poster sets out at the start that they understand they are relatively fortunate.

Fact is UK has some fairly unprogressive aspects of so-called progressive taxation. Mostly I think people accept these as they tend to affect the middle classes or the slightly better off (although sometime that's not the case - see debates about 'making work pay' for example for poorer people). I think it's absolutely okay to be annoyed about these. 'course I would say that wouldn't I, as a high earner, who is well paid, but not 'rich'. In Scotland this is getting even worse.

We as a country assess some things based on so-called assets (LBBT in Scotland is an atrocious example of this), some on households (some benefits) and some on individual income. There are points where these cause natural conflict so yes, it can be bloody galling when these impact you.

Is it as bad as being really poor? Well no, of course not, but:

(a) It's not a race to the bottom
(b) At it's worst, these tax & benefit conflicts can have severe consequences. (This is obviously not such a case, but it's the same system that is being applied.)

You should be proud of yourself. Keeping everything going on your own. Not easy but I see on a lot of threads that Dads don’t help financially or physically. Why does that happen? It seems so unfair.

First, well done for holding it all together. I am a single parent with 4 DC and 1 absent father who pays a whole £5 pw for 3 DC and 1 interferimg "i want my cake and eat it father" who pays when he feels like it. It's tough. Its hard to see it on paper but not in reality (my salary on paper is £18500 pa but in reality is £1002pm, damn those little words pro rata) but a rise is a rise. £100 is a fair bit. Think what you could do with an extra £1200 a year.

I think you are getting a hard time and sympathise with your frustrations. I earn similar and realise I am lucky but to afford mortgage, childcare etc there is hardly any disposable income left. I have 3 children and the extras like holidays abroad are too much to be able to afford.
I have a lovely home and can put food on the table (although large amounts of debt to sort). However, at times am frustrated that after years of study and progressing in my chosen career I still struggle to give my children everything I would like to.
Everyone’s situation is different as I don’t think we should judge others.

I got offered the promotion I had been working towards for 6 years and took it. Worked out I was £15 a week worse off... so yeah... I know where you are coming from?

YABU for not doing your research/sums right then posting that you're only going to be £100 better off when in reality it'll be around £250 after tax, ni and pension.

and this OP>>>>

I do feel sorry for you, but not because you are going to be £100 better off. I feel sorry for you that you cannot appreciate what you have.

A week ago I had a salary similar to yours. Now I'm "signing on" after being made redundant.

Over 2/3 of our household income was literally wiped out overnight and I am entitled to sweet FA, but I ain't moaning.

It is what it is and when you're a high earner you gotta learn to take the rough with the smooth I'm afraid.

Right now I'd be happy with a job that pays £250pm never mind a £250pm pay rise

Wow - so many supportive comments here that have made me feel a lot better about things and given me practical tips to consider too. I love MN because amongst to vitriol, which I can kind of see I provoked a bit, there's always kindness and good sense too .

I have pretty much decided not to go for the job because I've heard on the grapevine that it's not a great place to work. Sad, but will keep looking with a realistic expectation now of what to expect if and when I do get a raise. I am going to put in a claim for CM as well - not that I'll be holding my breath about ever getting any.

I hope things look up for everyone who's struggling. It's truly shit having to think about money all the time for whatever reason, and I just wish things were fairer. I certainly don't have a problem with paying taxes, but I do get where that phrase 'squeezed middle' comes from now...

And I did think the person who said I'd contributed nothing as a public servant and should have been a banker was being sarky. Very scary outlook if not...

You should still apply so people know you are interested in promotion. In my field it's a smallish circle and when I applied for a job elsewhere my client heard and asked me to join them.

Good luck! It's tough being a single parent and it's a huge accomplishment to be in the position that you are in. I hope you get the promotion you want and many more after it.

Only read first few pages. Lrd give it a rest! Dog with a bone! So what! My dh earns half what op does I don't care if she is Moaning about an extra 100 it's a good thread with lots of great points in it.
I'm sorry you can't work I couldn't either but you made me your choices, op I'm sure never planned to be single!!

I do get where you are coming from OP. DH and I cynically both kept our salaries just below 50k from 2011-2015, when I got a job opportunity I thought I just couldn't turn down. (25k rise on paper). I saw about £500 after increased pension, tax and loss of CB. This new job was full time so childcare costs increased and I need to look smart (also 5X a week). So I wasn't left with nothing but less than I was expecting. As others have said it opened up a new pay scale and I have now had another 3 rises, that was the shock rise, the others have made a much bigger difference. So I would say go for it.

I get why you need to vent op. Up your pension contributions and get in touch with CMS today. And congratulations on the promotion!

Oh, and bollocks do you get wtc on 30k.

It is frustrating. I’d go for the promotion though, £100 extra will become more as the children get older and you no longer have childcare costs etc.

I’m a single parent contemplating how I’m going to manage now I’m losing tax credits for my two eldest - plus the loss of discounts on CT and rent. They don’t become independent the day they leave college. I don’t get help from my ex either. It is hard being responsible for children and having no real way of increasing income so although you’re far better off than me in income I understand the frustration of feeling left behind.

Hi OP, I understand your post. I got a raise to £51,000 per annum and thought I would lose my CB but haven't so I guess it is because of my pension contributions and childcare vouchers. Have learnt something here today! I also struggle on my salary but top it up with a tax free hobby which is amazing (bonus bagging and profit maximiser) if you want to look into it. Re the career thing, I would go for a promotion even if I lost money (and have done in the past) if it looked like an opportunity to progress more and earn more in the long run. This has paid off for me. I do understand it being hard to live on that salary though even though others don't. I sometimes fantasise about being with a partner who contributed half and earned an equal sum to me, as I would feel really rich then, but I try it to dwell on it and make the most of what I do have. Best of luck with your job search. Go for it if you find the right thing.

Thank you for starting this thread theduchess. It’s heartening to see that the majority response has been intelligent and supportive, with relatively few of the tedious ‘I earn a hundredth of what you do and live in a cardboard box’ replies.

Your situation is similar in principle to the one where people deliberately keep their working hours very part time in order to top up with tax credits - although of course very different in that you aren’t expecting other tax payers to be making up any short fall. It’s perfectly acceptable when you’re paying your own way to simply decide to put a ceiling on what you’ll earn.

This is a massive problem with our systems though. Bottom line is, everyone has a tipping point where they’ll decide that the extra effort/responsibility/stress isn’t worth the extra remuneration. When you’re doing work which is providing other rewards as well as money - intellectual stimulation, the knowledge you’re doing something essential or beneficial to society- your tipping point is likely to be higher than if you work simply to pay the bills- but the tipping point is there none the less. Personally I think legislation around taxation (tax credits in particular) has simply got this wrong. And I say that as one who has always leaned to the left in a lot of my thinking. The moment you stop incentivising people to work to their capabilities, you’re in trouble.

As I said upthread, I’ve reached my tipping point. I’m at middle management level in an educational field, and when I look at what I’d actually have in my pocket if I took the next step of career progression, it wouldn’t be sufficient payback for the extra responsibility and work load. Which isn’t great in that my field is crying out for more women in senior management.

Unless I am missing something, is there a misconception about child tax credits? I have 3 children, I receive child benefit but not CTC. As I understand it, CTC is very much for earnings under a certain threshold.

Tax credits it seems to me benefit executives and shareholders instead of paying decent wages to the people who help them earn their money ! As for the public sector that’s tricky. We need to grow the tax pie and then they can earn what they deserve which should be more.

Tax credits with our details (married, 2 kids) stop at about 32000. It almost seems that whatever you earn under that most wages are topped up to nearly that amount.

Which isn't actually the case- but if you add in housing benefit etc it looks like it soentimes is when using one of the calculators.

almost seems that whatever you earn under that most wages are topped up to nearly that amount.

Exactly, and it's one of the incentives to manipulate the system, or conversely, get trapped by it if e.g. your job isn't well paid or you have a challenging commute or difficult shift patterns etc.

It's one of the problems that's integral to the debate around low wages even for full-time staff - the government is directly contributing to keeping fulltime working able bodied adults in the benefits trap simply because many many employers (household names) have stopped paying a livable wage, and it's been getting worse for years. Their shareholders (some of us, if we have pensions) and execs benefit though.