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.

Firstly, you can't claim tax free childcare AND the childcare element of UC - you can only claim one of them

Secondly, the SMI is a loan to cover the interest on your mortgage repayments only. It has to be repaid. You are also only eligible for this if you ( and your partner) have received £0 income (wages) for 3 months. It also stops as soon as any income is received

I would also think it's extremely unlikely that you'll be entitled to anything on a joint £4000 a month income

I don't think I understand UC. So whatever you receive whether it's PIP or DLA, housing, childcare, income etc it's all under the UC umbrella but protected separate 'pots'?

PIP and DLA are paid completely separately to UC as they are non means tested but receiving those benefits for children can give additional disability elements as part of a Uc claim.

You should check your award. If you earn <£1k per month you should be receiving more than £300 per month before even considering the childcare element.

Standard allowance. £292.11
First child. £269.58
2nd child. £269.58
Total = £831.27

Earnings minus work allowance
£1000 - £631 = £369

Earnings deduction
£369 x 0.55 = £202.95

Total of elements - earnings deduction = total UC award
£831.27 - £202.95 = £628.32

More if you are over 25, have a partner, one of DC was born before 6/4/17 or if you rent.

That's not quite right. It was 3.3 between 2022/2023. Not sure where you're getting your figures from.

Are you saying the benefits system is too generous?

Can't it be back dated?

Only if there is a good reason. OP does not have a good reason.

This clearly says you can apply for a loan, that accrues interest and needs to be paid back

No, and I didn't begin to suggest that OAPs might have childcare costs but many still have mortgages.

So I used the Turn2us calculator which has better explanations than Entitled To and the Universal Credit sum comes from the childcare costs it is the ‘up to 85% childcare costs back’ element coming into play. Initially I thought that was on top of the universal credit award, but now I understand it’s not. I’m not sure what’ll happen with my Tax Free Childcare account if I claim Universal Credit. Or how the transition to this would work.
I would be better off on universal credit than tax-free childcare as that is capped at £500 every 3 months (£2,000) a year.
i have attached screenshots. Appears the SMI can be applied for as well if we wanted to and they included this in the overall reward. Again, seems complicated and when we sell house we would pay it back.

I know we are fortunate to be in the position we are in, and I was shocked that we were entitled to universal credit. I then felt angry that I hadn’t known as I thought it was 85% back on nursery fees which is a huge saving. My son had been attending for 3 years so I backdated that back. But I realise that was incorrect, as someone mentioned on here it might have only been since my second child was born last year that meant I was eligible.
I appreciate the benefits system but I believe it is for people with misfortune, as any of us can lose our jobs or get bad luck in our lives/ relationships breakdown/ loss of a partner. I know of people who seem to be very well off on benefits and don’t have the stress of working/ they have no incentive to go to work and earn a living.

I'm afraid you will just have to take it in your stride. As I did when I discovered too late that I could have claimed a jobseekers allowance even though I had been paid out six months wages when I took voluntary redundancy (not in the UK before anyone tells me I'm wrong).

Ithought this was a very reasonable income and we would be entitled to nil.

that is the problem with a few things - people think they know the answer instead of checking the answer

https://www.theguardian.com/society/2023/apr/30/uk-households-missing-out-on-19bn-a-year-in-unclaimed-welfare-benefits

Thats the idea

but council tax relief - often called council tax benefit, doesn't come under the Universal Credit umbrella - as its a tax and its tax relief not a benefit

Housing benefit is only available in the main to state pensioners, though there are a few exceptions, and U.C has a housing element

U.C is 10 years late and still not everyone has been migrated onto this system.

Is this a joke?

Ah you're getting figures from the press? Okie dokie.

Bloody complicated 🤣

It's not just a figure the Guardian made up, it's calculated by a 3rd party consultancy, and includes all sorts of "non DWP/Welfare" "benefits" such as Council Tax reduction, far lower rate Broadband packages exclusive to people on certain DWP benefits, Water & Utilities bills assistance, etc. Basically a grand total of every sort of unclaimed benefit of any description which went unclaimed.

I doubt that @hayless thinks so @Workhardcryharder

Why does it say total benefits £277.34 per week then a different figure for Uc underneath ( sorry can't read that figure as it's blurry ). What figure is it giving for Uc and what other benefits is it including?

There is £42.55 a week included for Child benefit

Can you tell me how youre entitled to get 85% of nursery costs and what calculator you used? I'm a single parent and don't take this amount home and am entitled to just the standard 30 hours? Is that what you're claiming too?

I'm a single parent, 3 DC, renting and childcare costs, and I earn 51K a year. I'm entitled to approx £1,200 a month in UC. It's a bonkers systems where I'm basically almost over the limit for child benefit but am entitled to so much UC! However, saying that, my rent and childcare costs are extortionate, and I couldn't survive without UC, so it's not like I'm living the high life.

I've just done the calculator with a 4k household income and we are only entitled to child benefit. How come you are entitled to so much more? Screenshot all your answers, not just the output.

4K take home pay, and I received £1,137 in UC.

This is from:

Standard allowance: £368.74
Rent allowance: £1300
Child element: £584.78
Childcare element: £862
Total UC allowance before deductions: £3115.52

Earnings £4K - £404 work allowance = £3596

£3595 x 0.55p taper rate = £1977.80 deduction from award

Total UC received: £1,137.72

Obviously if I didn't have £1.3K in rent and about £1.1K in childcare costs monthly, I wouldn't get anything at all.