Aibu to ask how anyone has money left?

[sprinklecupcakes]

How on earth does anyone have any money left at the end of the month. I have totalled up all the bills we need to pay and they total more than the income. I just don't understand?! How can you work full time and still be left with not enough 😭please give me tips on reducing costs and making money last. I have gone to bed crying I cannot live like this. I got paid today and once I pay everything tomorrow I will have £3..😭

@sprinklecupcakes do not take another job right now! It may seem like a quick fix (it’s not, you have a young baby!) but if you do then your old employer will not have to pay your SMP. And they bloody should be. If you were working for them at 25 weeks pregnant (assuming you were as you said you worked for them for 6 years) then they must pay you SMP. Get onto them ASAP tomorrow and mention your involving ACAS. Were you in a union at the time?

Tomorrow you need to

-contact your health visitor for food bank vouchers (and tell them at the food bank that you have a young baby, they can help with formula/nappies). That will give you immediate help.

• contact your old employer and ACAS regarding SMP.

-contact your IVA provider. If I were you I’d ask for a payment holiday, go for the max time to give you time to get sorted. Explain the redundancy/NICU baby and additional needs and that you aren’t able to start back at work right now. If they won’t do a payment holiday then ask for a reduction.

Then in the next few days start looking at how you can reduce bills.

Phone: £75 and £65 (unsure if this can be down graded once already in contract?)

The amount indicates that you are paying for phones bought on credit. The cost od a usage contract can be very small.

So what was the purchase price of the phones, and when will you have finished paying for them?

Your BT contract is also very expensive. So what does it include? Internet speed? Inclusive calls to Australia? Unlimited talk time?

@sprinklecupcakes

We have our family mobile contracts with sky as well as our internet.

The internet is £21 a month for super fast and phone line

Our phone contracts are £25 each per adult and £20 each for the two teens however with sky you can bank any data you don't use and then they pay you for it back so it probably knocks about £10-£15 a month off the bill so £75 for four new I phones with unlimited mins and texts is a great deal.

Also don't have sky tv but have now tv which would normally be £25 a month for the three packages we have however whenever it's due to go back up I log in and request to cancel and then get each package for half price every three months so pay £12.50 a month for all the same channels as sky and more.

Do you have a smart meter?
I got one installed so every month I can view my statement and pay that amount only because I got sick of them constantly upping my direct debits without any reason. Now I'm in control of it and although I'm not in credit (rather the money was in my bank not there's) im never owing on the gas or electric.

We spent many years really struggling when our kids were young. We worked around each other so we didn't have to pay childcare, drove old bangers, everything was second hand ( furniture, baby equipment etc). The young friends/ family I have now all seem to have everything brand new. I have a friend who is in her mid twenties always complaining about being broke but just bought a four bedroom house and had everything renovated immediately, baby goes out to farm parks/ winter wonderland/ sensory classes/ swimming classes type places every single weekend. Always having professional photoshoots etc. I have no idea how they do it but can see why they have no money left !. They have no idea how to live cheaply, it would just be alien to them so I'm not sure whether it is a generational thing.
Have you checked whether you are entitled to Universal credit? The rates have just changed which will mean more people are eligible than before. being on UC can passport you to other things, energy schemes etc so always worth checking.

I feel you, based on my basic wage after deductions (tax/ni) I don’t even have enough left over for all my bills never mind food and other stuff and I’m on above national minimum wage working full time (37.5hrs) and receive weekend enhancements! Granted I have a few debts and pets but even without them I’d literally only just be scraping by. I rely heavily on overtime and do frequently worry I won’t pick up enough shifts on any given month, I’ve been lucky since covid hit in that the amount of shifts available has increased as I’ve been able to pick up bank contracts for other departments, its now not uncommon for me to work 6 day weeks with at least one of those days being a 13/14 hour shift frequently making my working week around 50hrs, I’m permanently shattered but its been nice to have a little cash over to be able to do things like get my son swimming lessons. I’ve been told that from Feb there is a good chance availability will drop and definitely will from May and I gotta be honest I’m panicking a little as there really is not a whole heap I can physically cut back on, its a shit state of affairs.

@Animood

Also OP, this isn't that helpful now (sorry) but this is why people have an emergency fund.

Basically all financial advisors will say to have a chunk of money set aside in an instant access account for an emergency (like being made redundant or your car being stolen or illness).

Financial advisors usually say 3-6 months of expenses but don't let the high anoint put you off- any amount saved will help you.

You keep saying that after 6 years you thought your job was stable. Let me tell you jobs are NEVER stable or safe. Which is why we all need an emergency fund.

I don’t want to stick the boot in Op but I agree with the above poster. Try and get out of your BT contract and looking into your entitlement to benefits. Create a budget spreadsheet and record every single penny you spend. As soon as you are able to, start saving a regular amount every month. I know you thought you were settled enough to take on the expensive contracts but that is only something you can afford to do if you can also afford to save money every month as well.

I have applied for jobs but I haven't heard anything. He is fresh out the NICU with additional needs we knew nothing about until he was born. I am trying with the job search but we only got home 6 days ago.

I’d keep trying. Seems like your only option. We had the same with my daughter in NNICU, but my husband was able to go to work, and I could have done the same if we had needed to. There is really no other solution if you are so sure your outgoings can’t reduce.

OP if you have been working for the past 6 years you are definitely entitled to maternity allowance if you are not receiving maternity pay from your previous employer. It’s £150 per week for 39 weeks, please apply asap.

www.gov.uk/maternity-allowance

I got made redundant whilst pregnant and this has been hugely helpful

Increase money coming in:
Maternity pay
Universal credit
Child benefit
Look into the redundancy and whether it was discriminatory! If it was pursue a claim
Sell what you can, there is always a market for baby and maternity bits

Stop money going out:
Consolidate the credit card and loan - try and get 0% interest rates if you can to reduce payments
Get out of the BT contract asap
Sell the phones and go sim only (pay the early finish fees)
Combine telecoms with one provider for a cheaper deal
Meal plan and buy what you need - yellow tickets and freeze or batch cook
Have a think about the car - could you sell it and go without for a limited time period? Say 6 months to get your finances in order?
Check your electricity and gas use. £140 is still high for 2 people. Look at ways to cut down your use if the prices are fixed.
If it absolutely comes to it, could you move in with any family for 6 months to get some money behind you?

Apply for maternity allowance and UC. try turn2us to do benefits calculator.

Other people have suggested ways for you to decrease outgoings, but I think you need to increase income as well (and you can, by a good anount).

Firstly DO NOT apply for maternity allowance as suggested by others, as based on what you said it seems to me you are entitled to statuory maternity pay. Assuming you satisfy the criteria for statutory maternity pay (essentially that you worked at the company before you were pregnant and provided your MATB1 form), your former employer needs to pay you this, it is illegal for them not to do so surely. You were made redundant at 35 weeks, which is well past the qualifying period (15 weeks before due date). Unless you have already been paid this, as a lump sum, as part of your redundancy package? But it would have to be the entire amount of SMP, taxed as such with NI deductions, and in addition to your redundancy pay. If that is the case, then you would be expected to use that lump sum as your income for the 9 months that would have been your maternity leave. Therefore you'd need to factor that into your monthly income, not just your partner's salary.

If however the company has not paid this to you (which appears to be the case), and you are entitled to it, they must still pay this in full. You as a (former) employee and them as a (former) employer cannot opt out of it even if they offered a generous redundancy package without the SMP, it is statutory. HMRC can pay this to you directly and then recoup this from the employer if they fail to pay it. You need to get in touch with your former employer and ACAS if you haven't received it.

Furthermore, make sure your child benefit is sorted, as every little helps. When mine was tiny it covered all the monthly baby costs for a few months, as I believe it's £84.60 every 4 weeks.

And based on your partner's income I don't see how you couldn't be entitled to universal credit. You must be. Please apply ASAP. My salary is higher than your partner's plus my partner works part time, and like you we have one child, and we still receive universal credit. We are not in an expensive area either. The taper rate and work allowance has very recently changed so you don't lose as much universal credit when earning, which also helps. You will need to open a UC claim as a couple so it takes into account both your earnings.

Check your energy supplier and if you are eligible for the "warm home discount scheme", it gives you £140 credit off your electricity bill over the winter (by 31st March). You may have to get yourself on universal credit first depending on your energy company's scheme's requirements.

Once on universal credit, you should be able to apply for a Sure Start Maternity Grant, you can apply for this until your baby is 6 months old so better to apply sooner (so sort out your UC!) The scheme gives you £500 cash in your bank account to help with the costs of being a first time parent on a low income.

If you are able to complete the steps that I outlined above, you really shouldn't have to rush back into work any time soon, as it should cover you financially, especially the mat pay and universal credit. You should be able to stay at home and enjoy your 9 months or so off as maternity leave with your little one.

My outgoings are

Council tax £140 pm
Utilities £100 pm
Water £20 pm
Tv license £10 pm
Giff gaff phone bundle £6 pm
Broadband £22 pm
Thats the lot...... No mortgage mainly because we kept outgoings as low as possible to focus on paying it off.
The BT and phone contracts are just madness to me, be upfront with them. Tell them you cant pay and see what can be done...... Hell hand the phones back if needed.
Contact the debt companies, see what can be done there to reduce the payments for a short time. Is your credit card interest free? If not get it switched.
You say your baby has some additional needs...... Have you applied for DLA? You may be entitled to something there.

Also there are loads of delivery driver jobs at this time of year, definitely keep your eyee open for something like that. My friend covers her entire rent from working one Saturday a week for a Chinese takeaway.... Its been a lifesaver for her.

You'll definitely be entitled to some UC. Look into maternity allowance too.

OP you will be entitled to child benefit- hopefully this can be backdated. You should also use a benefit calculator this will list any benefits you may be entitled to, there is one on the government website. I would think possibly universal credit and maybe even a council tax reduction based on a relative in a similar position recently being made redundant. As another PP said please look in to maternity allowance- it’s based on earned income from employment in the last year and an average is worked out.

I mean this with the best will in the world OP. But seriously FUCK this CONTRACT!!!

If you can’t afford to eat or pay your gas bill, then being ‘in a contract’ to some corporation means little to nothing.

For example on your bills list…
Bank loan: £111
IVA: £150
Credit cards: £60

The above CANNOT be paid if your priority bills can’t be met. By priority I mean rent/mortgage, council tax, gas/electricity and food/clothing.

You have to look after your family first and consumer credit such as a bank loan legally takes second place to the important bills that you need to function with.

You need proper debt and benefits advice.

Check if you can get out of your BT contract early (for a fee). I pay £21 pcm for fast fibre broadband and line rental with all landline and mobile calls included!

Get filling out a benefit calculator and see what you should be getting.
I was locked in a contract with sky, when I my marriage broke down and I had no benefits for months until they were set up. I called them up and explained and they put it to £5 a month because I had no money. I was in a right state down the phone and they were so kind and helpful. Perhaps BT would be for you too if they knew the full story. Same with phones.

If there is really no money left and you are struggling and stuck in these contracts try speaking to your health visitor about getting a food bank voucher.

How long has your partner been on his IVA? When the company he used went through it with him, they will have asked for all information, including yours if you live together. IVA companies ask to be notified about any change in income. They also do reviews, perhaps every six months or annually?

Contact the IVA company in the morning and tell them about the change in your circumstances. They may reduce the payments.

Also, I’ve been in a very similar position to you, financially. I made/make monthly meal plans and stuck to them rigidly. If you want help with meal planning, then I’m happy to do so. I didn’t/couldn’t cook before I had DS5 and now I cook from scratch every day and stock my freezer etc. I’d love to help if I can.

OP please don’t feel bad, the costs of living are super high, I really don’t know how people are managing. Ok I am a single parent (of a teen) with an ex that gives me zero financial help and I live in an expensive bit of the country housing wise and work “part time” (still hours many would consider full time and that’s without counting the unpaid overtime that just have to get done), but I am a fully qualified doctor on a decent salary well above the Uk average. And I find it a real struggle and pretty much live paycheck to paycheck without managing to build up much of a financial cushion which I hate- I admit I’m not the most frugal and there are a few things I could cut back on or downgrade from luxury to necessity basic value option only, but I’ve already done some of that and neither am I the spendthrift I used to be and I am definitely feeling the punch more and more every one of these last ten years and really since the financial crash in 2008 (had a baby roughly the same time so hard to know which did it!).

You are getting some really good advice on here and I’m so pleased you are listening and engaging with it. If you aren’t getting maternity pay it sounds like you have been screwed over royally by your ex employer which I’m sure is a huge part of the financial puzzle here and so immoral of them, I would definitely look into the legalities of this - sometimes you can get a free hour of solicitor advice on a situation through citizens advice. Check out “Pregnant then Screwed” for tips. And should definitely at least be getting SMP at least.

You should definitely get advice from StepChange or similar about any debts or contracts you are locked into if you’re struggling to afford the basics, often they can negotiate something for you with these people based on what you can realistically afford. But don’t just stop paying without discussion or you’ll wreck your credit record which can take years to fix and be a real pain in certain situations like if you want to buy a house etc. Your partner’s IVA is probably already affecting it to some degree. I’m not sure exactly what’s up with your baby but you said they were in NICU and are sick and have additional needs. If this is likely to be a long term issue you may be eligible for attendance allowance which is like a carers allowance if you are caring for a child who is sick rather than a child who is well, worth checking with a benefits advisor (and absolutely claim everything you’re entitled to). Don’t be too proud to ask for help from a food bank if you feel you need to, they will let you know if you’re eligible but your situation is tricky right now temporarily hopefully.

Good luck! You can do this! I would focus on trying to stabilise the current financial situation first for the next few weeks and see what can be sorted before continuing the job hunt as you have a young sick child - needs must sometimes of course but you might be surprised what you can sort out once you’ve accessed everything possible to maximise your income and reduce outgoings. And then you can do it when you feel the time is right without feeling such huge financial pressure to get a new job immediately.

I pay £21 pcm for fast fibre broadband and line rental with all landline and mobile calls included!

I will never understand how people manage to negotiate deals like this. (Yes, envy.)

The IVA amount looks odd. If this was arranged before you even knew him (you said you didn’t know how much debt he had until recently) then he must have either been earning a lot more then or he was living with his parents and not paying rent and utilities. There’s no way a payment of £150 would have been agreed on that income and those basic outgoings.

I guess the lesson here is to make hay whole the sun shines and save. You had a bs h on the way abc you say your income was comfortable so did you save?

Those phone contracts are way too high for your income. I pay those kind of prices here in the US (where such things are a lot more expensive than the UK) but I make more in one week than your boyfriend makes in a month and my husband works too. You just cannot afford it even justify those amounts. You have to change tariffs or plans.

Can he deliver pizzas or drive for Uber on his days off? Not sure how it works in the UK but over here that’s usually the obvious choice to earn some quick money if you have a car that’s less than 12 years old.

@TheDuchessOfBeddington

I mean this with the best will in the world OP. But seriously FUCK this CONTRACT!!!

If you can’t afford to eat or pay your gas bill, then being ‘in a contract’ to some corporation means little to nothing.

For example on your bills list…
Bank loan: £111
IVA: £150
Credit cards: £60

The above CANNOT be paid if your priority bills can’t be met. By priority I mean rent/mortgage, council tax, gas/electricity and food/clothing.

You have to look after your family first and consumer credit such as a bank loan legally takes second place to the important bills that you need to function with.

This. Plus unless he has a job that he would lose if he went bankrupt, it's unlikely that an IVA is appropriate when you rent.

You need professional impartial debt advice and also to learn about budgeting and priorities. You shouldn't be making debt repayments if you can't pay for basic essentials.

Plus it sounds like your partner is irresponsible with money which is likely to make your finances difficult unless you start to earn enough to be financially independent.

@sprinklecupcakes - I was made redundant at 7 months pregnant (back in 2008), so I really do understand the terror of suddenly finding yourself unemployed with a newborn to care for. I received a lump sum redundancy payment, with included my Pay In Lieu of Notice and my Maternity pay, as I was still employed by the organisation on the 15 week qualifying date - as were you. Your former employers should have paid your Maternity Pay to you in a lump sum, along with your redundancy payment - did this not happen?

@Freecuthbert has given you all the details, but you need to get on to them about this, you absolutely should have received this from your former employers. I'm sure the Child Benefit will kick in relatively soon, and that, along with the Mat pay should really start to take the pressure off, especially when coupled with so much of the other excellent advice you have received on this thread.

I hope your finances are looking a lot less depressing by the time the New Year rolls around. Take care of yourself and your lovely new baby.