to expect something back from the state now our income has dropped by more than half...?

[vtiredmummy]

Had rotten dat today, and ended up shouting/crying on phone to poor call centre lady from the child tax credit office.

Our situation - until last week dh and I were good earners, (and hard workers) with paid childcare. Now dh has been made redundant and effectively overnight our income has reduced by well over half.

So (stupidly) I called up the tax credit people (cos my wage alone entitles us to both child and working tax credits) to let them know...like the advert 'let us know if your circumstances change...etc etc' to be told that we are entitled to nothing because of our income over the past ten months.

Then we can re-claim in April where they will base it on 08-09 income and they might take into account redundancy, but the amount we get (if anything) is still based upon 08-09.

They won't take the cost of childcare into account because dh is at home, so our ds now loses all routine and continuity as we will have to take him out of his nursery due to the cost.

Does anyone else think this is totally, totally ridiculous??? We will get all the credits we need in April 2010 in effect. If dh hasn't got a job by then we'd have lost our house long before.

We can't be the only ones in this situation and I find it infuriating that HMRC don't have a system for people in this situation.

And if dh left me I'd be better off as a single mum right now...which just makes me even more mad. What the heck does the government think they are doing???!!!

AIBU, or should I just be thankful for what I have gor. I don't feel much like this right now btw...

Rant over

PPI weallpay insurance: national insurance.OK the childcare thing was complex but really what do you think we pay for?

Not everyone can get PPI: dh couldn't due to his medical history- cue loss of house. We never banked on me not working because of the bioys being disabled. Dh does wotrk but yes, TC's do help with that. So thank goodness I worked all those years to contribute to it.

Does your PPI pay for more than six months then?None of the ones I used to sell did.

thanks for another tip tip choufleur , I shall contach them on Monday

'top' tip...oops

you should phone your mortgage provider too... they may be willing to let you pay interest only for a while, or do reduced payments or even take a break for a couple of months.

yes good idea to contact mortgage provider - ours allows a month 'holiday' for every year we've paid into it

I'll deffo phone the mortgage people too, thanks so much to all the posters with tips. There are certainly more avenues to explore, which gives me lots more hope. Thankyou!

Oh, yes, it could be a whole hell of a lot worse!

Most countries in the world have no welfare system to speak of.

So no one automatically expects the government to provide financial fallback when things get tough.

And we're not talking about developing nations, either.

In the US, there is very limited financial support around and strict time limits how long you can receive such help in most cases.

Yet people still pay taxes.

You contribute because it's the law and unfortunately, running a society that isn't constantly racked by war, has clean water on top and hospitals around cost money.

thisisyesterday has brought up some salient points, because it does strike me as a very British quality, this sense of financial entitlement and compensation from the government on the basis of having paid tax.

Well, everyone does that the world over. It provides revenue for the running of a peaceful society that allows stability.

Being made redundant really sucks, it's happened to me twice, but sadly you can't expect the government to preserve your old lifestyle just because you paid taxes and NI.

I hope your husband finds work soon.

Thisisyesterday, interested in your knowledge about mortgage payments. Are their set things they should offer people in these situations or is it totally random?? Do you need for example to have made overpayments etc.

I am sure I read somewhere about letting people breath for 6 months?

expatinscotland I don't know if you have read the whole thread...The 'couldn't have been a lot worse' comment was joking that the Oz system couldn't be worse than the one here cos my in-laws live there. I wasn't referring to any other country in the world.

And I don't expect the government to 'preserve my old lifestyle' We have already made radical changes to our lifestyle, we just want avoid it affecting ds for as long as hum anly possible. And part of the reason for contacting HMRC was to be active about finding what was available to us, not sticking our head in the sand.

I think most, if not all, mortgage providers see it as in their interests for a mortgage to continue in some form rather than default. Besides, if they allow interest-only, they actually gain in the long-run as the capital doesn't fall and the interest is charged on the balance that stands. It is always worth a call and discuss options with them before any payments are missed rather than when it becomes too late.

Would you be black listed or anything?

mlm19, I only know what I found out when I took our mortgage out I'm afraid... no expert lol

all I know is that most mortgage companies would prefer not to have to repossess your house unless absolutely necessary, which is why it is always worth asking about payment breaks or only paying interest etc.

afaik you don't have to have made overpayments in the past.
but I don't know if there are any set practices or if it's just down to the individual lender (i suspect it is)

as long as you called them immediately and made an agreement on payments you would not be blacklisted.

that would only happen if you had missed payments etc etc, so important to get stuff like this sorted asap

vtired, I sympathise as my dh got made redundant in September.

However we knew we would not get any credits because we have over £86k in savings so we have have burnt through them now.

I could get cross because we are being penalised for having been frugal - but really I'm not. I see the benefit system as something ONLY to be used in an emergency. Clearly you still can save quite a few hundred pounds by taking your child out of nursery. But you aren't. That's selfish, sorry. We've all paid in out taxes but its not a big enough pot to provide you with that kind of cover!!

and as for upsetting ds, I can't belive you would rather he was looked after by strangers than dh!!!! My kids are out of childcare, dh is house husband, I work, that's it!!!

Blimey...I meant £6k savings...not sure what happend there, wishful thinking!!!!

well said expat, I agree

This might have already been asked, but did anyone post about this stupidity on the Minister Thread under Site Stuff? Because I think this is exactly what they need to know, that if you lose your job tomorrow, you can't get any help.

YANBU to be angry and shocked at the situation it must be very scary.

But I would try and look at the positives. We have had some bad financial problems. Down to my ill health I lost my job. We almost lost our home and have had to readjust our lifestyle somewhat but have had some strange positives come out of it.

Firstly I am re-training and never would have done had I not got ill. I used to not mind my job but never found it very fulfilling, but am retraining to do what I have always wanted.

secondly, my DH now looks after the DCs for half of the time when I go to college and they all love it, it has made them all so close and DH is so involved in their lives now.

so though it is hard try and look on the brightside:

the childcare costs alone should go a big way towards paying the mortgage (even if it is interest only for now).

And botht your son and DH will benefit, they will be so much closer for it. At two they adapt so quickly and this should be adapting to something better not worse.

I don't think that the government can bail out everyone. I think it is up to the banks to be far more lenient with mortgage repayments and not go for repossession unless people are deliberately avoiding repayments.

I really hope your husband finds some work soon

There is something a little off topic but....the gov't has some sort of help for those people who's circumstances have changed dramatically recently that allows deferments of their mortgage for up to 2 yrs - the interest still accrues over this time but its something?

Speak to your lender but it was in the news this week (check money matters on the gm.tv website)

Tee, it is not stupid for the government NOT to pay out as soon as you are made redundant. Everyone keeps being told to put by savings for exactly this, but a lot of people think they are entitled to a certain standard of living and just will not save (instead of skipping a holiday or going shopping etc).

If OP and others like her cannot be bothered to pu by a little money to take them into the next tax year (2 months FFS) then tough.

So many people moan about a nanny state, but they are the first to run to one instead when they act like children!!!

Surely you have to take as much responsibility as you can before you shout for help - there are too many people who are really in dire need!!!

rant over!!!

Did anyone listen to the interview of Gordon Brown this evening?

It was a call in program and this woman called up and pointed out:

1. She had been working any paying NI/tax for the past 20 years.

2. She lost her job through no fault of her own

3. So, why could she not collect JSA as her husband was working and was based on household income...

GB didn't know the reason, but you have to admit she has a good point.

YANBU. we were in the same boat when DH was made redundant before xmas. phoned tax credits to tell them our income had dropped and we were just getting SMP from my employer. but because they take into account the annual income not just that month so i earn a reasonable amount over the whole year but at present am just on £120 per week. they actually gave us less when he was made redundant since we didnt have to pay out childcare as he was at home. bugger really as nursery require 8 weeks notice so we still had to pay even if DS1 didnt go.

thankfully he got another job within 6 weeks - ironically within the tax credits part of HMRC

How awful for you.
It will be good practice though for your husband to look after a 2 year old all day. Lots of men never do enough childcare so this might be a hiddne bonus of the situation.

I have never had a tax credit in my life but glad to see they are paid out to some deserving cases. Pity we can't all get them.

If your husband can find a new job right away even if it's just bar work or cleaning that might mean you could keep the child at nursery perhaps though if that suits the family better.