AIBU to be angry about the benefits system

[Daffodilsinfebruary]

I have recently discovered by using a free, independent benefits calculator called entitledto that had I applied for Universal Credit over 2 years ago, me and my family would be over £16,000 better off.

I had assumed that benefits were for either single-parent families or people unable to work due to disability.

The majority of our savings would have been from claiming 85% back in childcare costs. We also would have had a payout of over £200 each month in addition.

For context, we bring in just shy off £4,000 a month. I thought this was a very reasonable income and we would be entitled to nil.

I feel angry that we did not know about this. A friend of mine who I met through our children attending the same nursery told me she claims 85% back in childcare costs during a conversation in which I complained of my childcare going up £150.

I did further research and 19 billion pounds apparently goes unclaimed every year.

I’ve never claimed benefits in all my life and worked hard to get on the property ladder.

should I be angry that we didn’t claim, or take it in my stride.

I wonder how many other families who could have claimed but haven’t.

When you’re savings drop lower though you will be entitled though.

Do you have savings OP?

On a monthly take home income of £4k, I'd hope so.

OP, something has gone wrong somewhere. We are a 2 parent family, both working full time, with similar joint income to you. We have two children of similar ages. DS1 has a disability so we claim DLA for him, so arguably more likely to be entitled to support than you, as I think there is some kind of allowance included in the UC formula before they start deducting things. We are entitled to nothing more than Child Benefit. I guess probably tax free childcare might be something, but we don't actually need to use childcare so not relevant.

We, like you, are the Just About Managing. But the key thing there is that, at the moment, we ARE managing. Benefits should be for those that, without them, cannot manage.

But you can't compare your situation to op's at all because of one glaringly obvious difference. Op has childcare costs which will likely make up most of her UC award and when this runs into over £1000 of course it is likely going to make her entitled to Uc because her total Uc ( before deductions for earnings ) could be £1000+ more than yours. This is the difference. You are not comparing like for like .

Which I guess just shows that something isn't clear enough. Are the tax-free childcare bits not additional to the basic UC? That's how I've understood that to be?

I thought if we had to use childcare then we would be entitled to claim some of that back, not that we would be entitled to UC? Maybe I'm wrong - presumably so. But wasn't the whole point of UC that it was easier for everyone to understand and navigate?

No you can’t use tax free childcare and UC. They can still use the funded hours and UC though.

I think the problem here is "assuming". You should have checked. Everybody should check.

Depends whether tax free childcare or UC works out best for you, but you can't claim both. I'm surprised that with a disabled child ( if they are on higher rate DLA ) and a carers element which you could claim, you are not eligible for a small amount of UC. Might be worth doing a ( reputable) calculator calculation again ?

You’ve said that twice. What’s the problem?

£4000 monthly income is pretty decent. Two pensioners wont have as much, but will be paying tax on basic state pension before the tax freeze on Income tax thresholds ends in 2028. It's idiocy.

Carers element, that's the bit I was thinking of that they take into account!

We were on tax credits and I claimed carer's allowance, but went back to work when both children went to school and now earn too much to get anything other than Child Benefit (plus Ds's DLA) - although if someone can recommend a reliable calculator then I'll happily check again.

OP seemed to suggest though that she'd get UC (which someone more in the know than me said would be largely due to childcare costs) AND also be able to claim back money via tax-free childcare. Perhaps that's where the confusion lies, if you can have UC but not the tax-free childcare, or claim back the childcare but not be eligible for UC?

Two pensioners likely don't have childcare or mortgage costs.

The entitled to calculator is notoriously inaccurate. I'd be interested to see if it checks out from a manual calculation

I had assumed that benefits were for either single-parent families or people unable to work due to disability

Seriously?

Having a child makes a huge difference
What would be a straight no childless can suddenly be a fortune if you have a child. Also puts you higher up the list for a council house for those that need one.

No wonder so many kids are born into poverty.

How are they born into poverty if benefits give them ‘a fortune’.

I feel despair that so many people think benefits should only be for the poorest of the poot, the practically destitute.
Whatever happened to social democracy?

There are a lot of very rich people in this country. Most of them inherited, they didn't work for their wealth.
IMHO the benefits (and tax) system should be there to re-distribute wealth. I would estimate that under a fair system over half of all families should be entitled to something.

If you/DH have an income of £4k and DS1 gets HRC DLA you should apply again when the rates increase for 24/25. At the moment the total of the elements (based on standard allowance, 2 DC, severely disabled child and carer elements) would be wiped out by the earnings deduction, but when the rates and work allowance increase at £4k you would be eligible.

Currently in receipt of several benefits including Child Benefit, UC, Child Disability Payment, Carer's Allowance and Scottish Child Payment.

It's up to you to look into what you are entitled to and ask for it to be back dated.

🤦‍♀️

It's Universal Basic Income by stealth.

Normalising the idea of handouts for those who don't need them.

And it'll never change, because with so many people receiving these handouts, any government seeking to remove them will be voted out.

I get nothing, by the way. My partner and I work full-time, up at 6am every day, to hand over large chunks of our incomes to the state, which spends a fair whack of that on handouts, or wastes it on crap.

Exactly this. If this is correct why are so many people complaining UC is unfair?

In that case I assume you won't be claiming it, because you're clearly 'better than that'

It’s not correct. There’s definitely an error in OPs calculation. Also she hasn’t factored in the benefit they have had from tax free childcare (which you can’t claim on top of universal credit) and then run those numbers against the help with childcare via UC to see which is more beneficial to her and what the difference is, as it’s only the difference she has been missing out on.
I earn over 75% less than OPs household income and get around 300/month UC for two children plus help with childcare costs, so I don’t think she’d actually get the 400.
As pps have pointed out, help with mortgage interest is just a loan and gives DWP some kind of charge on the property I think, so most owners wouldn’t touch that unless absolutely desperate.
This is just a storm in OPs teacup - she may have missed out on a bit but it’s nowhere near the amount she thinks.
Frankly coming on here and saying you don’t worry about money and can afford luxuries, but you’re annoyed you think you’ve missed out on having more money, when lots of us are putting essentials back at the supermarket checkout - well, it is a bit tone deaf in the current climate.
To the others climbing on the “not fair” bandwagon - OPs post is just misinformation (not her fault). Don’t worry about it!