Thoughts on the potential childcare budget

[Whatisgoingona]

I’ve just seen looks like changes will only help those on universal credit

encouraging more mums (and dads) to work less I know so many mums who work but don’t want to do more hours or get paid more because it’ll effect their benefits.

so rubbish for normal working families paying thousands every month

im not sure what percentage of people are on UC would be interested in the percentage of the population that actually get help

amp.theguardian.com/society/2023/mar/09/parents-on-universal-credit-may-be-allowed-to-claim-more-for-childcare

www.telegraph.co.uk/politics/2023/03/09/jeremy-hunts-budget-boost-childcare-support-benefit-claimants/

The reason most people on UC don't work full time is because of the cap on childcare costs. Raising that cap means they can claim more so they can work full time. That's a good thing.

I'm on uc, and if the amount goes up then that would be amazing. My hours go up and down, but in August I'll be working full time and my childcare will be around £1500. With the amount of help right now illbepaaying £900 roughly. I'm desperately scrimping the money aside to survive that month. Every month is a struggle. I do my budget and this month I was already in minus of £200, looking for things to sell to try and not get my debt any higher. Even if you work full time you're sometimes able to get uc.

And I'm a "normal working family" thank you very much, I work full time and get UC.

My post isn’t a criticism of people on universal credit however I do think it’s a cop out from the government as it only helps a select few when at the moment almost all parents are saying childcare costs take upwards of 70% of their income

It's to try and get people on UC to work more and progress so that they no longer need UC in the future. That benefits all of society.

@Beezknees thank you for explaining I didn’t understand that so essentially the governments plans aren’t even investing any new money in to childcare

just raising a threshold that sounds like they should be raising anyway without any pressure

This makes me mad. People should absolutely be helped with childcare especially those who need it most but there are people just outside of the threshold who don’t get help that are then worse off than people who earn less and are eligible to claim UC.

I currently work in a massively understaffed area of the nhs and I’d earn more dropping my hours significantly as it would in turn allowing me to claim UC including help with childcare costs I don’t currently get. So work doesn’t pay. It’s bonkers I could work less, have more time with my children and get help with childcare and overall have a higher income. Why discourage those not eligible for UC to work less to claim…

Sorry about the typos! I should add I’ve done the calculations several times because I couldn’t believe it to be true. I could drop from full time to 24 hours and get more each month. I continue to work full time but more days than not I wonder why I bother, especially with news like this. That’s not to bash UC it’s just to highlight that the systems broken and the government need to help more people with childcare costs than just those on UC.

@Minnie456 i completely agree!

this is what my original post was referring to I honestly need to go back and redo the math and see if it’s worth me working as hard as I do at the moment like many other parents I’m left in the minus at the end of the month

it’s so disappointing if this is all the budget will be there’s been so much momentum around childcare costs I was really hoping for something that would make a difference

I was hoping for something too OP.

I had a play with my hours to find my best possible income. It shouldn’t be that I could work 3 x 8 hour days and get more than I currently do.

I thought the whole point was to retain the workforce so we pay in to the system but there’ll be so many people in this position who still have no choice but to work part time.

I’m starting to see no choice but to drop hours or potentially to change jobs completely for something better paid but outside the nhs (which I know isn’t the point of this thread but children are desperate for the service I work in and so many staff in the nhs are women/mothers who can’t afford to work full time) but I’d rather not have to chose either, realistic help with childcare costs could do that.

Are you single? Because I'm not sure how it could be that you'd have a higher income working part time. I work full time, as a single parent and get UC, I'm better off working full time. When I was part time, I earned £1070pm and got £700pm in UC. Now I'm full time, I bring home £1600 a month and get £550pm in UC. UC is literally designed to make you better off working full time, unlike the old system with tax credits.

I don't have childcare costs though, so that could be a tipping point.

Also maximise your pension contributions. You get more in UC that way as it's calculated after pension.

Yes @Beezknees it’s just childcare costs. I couldn’t believe I would be either!

Yeah it's a killer. Honestly though the time will come when you don't have them any more and you'll be better off. My DS is 15 and I'm still reliant on UC which will end in 3 years because I chose to limit my earning potential by working crap PT jobs when he was little, so I'm not in a good position. I need to get up to £35k by the time he's 18 to match my income now and I'm only at £24k.

I mean I understand why people get Uc before people say anything

However what about people that don't earn a huge amount potentially just over the threshold and get no help, what about childcare support for them?

Where is that statistic from please?

Yeah those are the people that need some sort of support so they won't be better off on universal credit

If they increase the cap from £646 then more people will be eligible for UC so potentially could get a bit of help each month.

it’s frustrating that they are now potentially going to pay childcare upfront- I had to scrimp whilst on maternity to pay for that first month being back at work.

A personal grumble for me is that this will happen just in time for me to get the 30 hours childcare and my childcare bill is going to be less than £646 for the first time in 2 years… it’s a shame they won’t backdate 😂

They do need to create a scheme that is fairer for those above the threshold though- tax free childcare doesn’t help enough especially as it’s capped.

encouraging more mums (and dads) to work less I know so many mums who work but don’t want to do more hours or get paid more because it’ll effect their benefits.

Then they are misinformed. I'm a single parent of 2 and claim some UC including for childcare. next month I'm changing jobs to a higher paid one & will also be doing more hours. I'll be about £200 better off.

Raising the cap on the amount they'll pay for childcare is the bare minimum tbh. They haven't raised it for years. And most childcare providers put their costs up yearly

This! How can people not see that those "just above the threshold and get no help" will now potentially be above the threshold 🙄. This will mean I'll actually be able to afford to go back full time rather than part time because childcare won't take all of my wage up.

And for the record as a household with an income of 60k you can still get UC depending on your circumstances so its not just for low low wages. If you're on over this then maybe you need lifestyle changes and not "handouts" that are there to allow the lower earners a life that's above the poverty line.

@smellyflowers not a literal statistic but similar findings being posted by pregnant then Screwed

The tax free childcare system isn't enough help really it's still very expensive and this is why people don't bother working then have to rely on benefits.

I think unless people are earning huge amounts, there should be a lot more support for childcare, all day care/ wraparound / holiday clubs.

20-25% isn't enough for people who are literally above the threshold for UC. It should be nearer 50% as childcare costs just keep going up and up.

People on UC have also had extra cost of living payments and I'm not saying they don't deserve these as I know in alot of cases people are unwell or have caring responsibilities but there are people on only a little bit more who don't meet the criteria for UC who work and are therefore worse off than UC claimants and that's not fair however you look at it. There needs to be a better system worked out.