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Lone parents

Use our Single Parent forum to speak to other parents raising a child alone.

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Original poster

more money working p/t than f/t due to benefits and tax credits?? This can't be right!

23 replies

practicallystupid · 13/12/2008 22:39

Am i mad, or is there more financial incentive for single parents to work part time?
On entering employment after i finish my course i am set to earn 24,000 gross full time, i worked out that after council tax and ridiculous childcare fees because i'm not entitled on that amount to hardly any tax credits or childcare help etc, i'd be able to save around 7 grand of that at MOST (ppl keep scaring me how expensive kids are, but i have a very frugal lifestyle and buy EVERYTHING second hand if i can...and i survive happily on 15 pounds a week for food.)

But working part time, i'd be earning around 8,000 on around 16/18 hrs a week in the same job, BUT i'd be given a little over 13000 in tax credits and income support for use on childcare etc! So i can basically stick the whole of my earnings in investments. AND be awarded full housing benefit and a significant reduction in my council tax! As someone who has always believed that hard work should be rewarded i am shocked that the british welfare system undercuts working mothers who want to be out there full time (nothing wrong of course if you want to stay at home) but in reality doing so actually leaves me with LESS money the more i earn!

Is this true for you? Has anybody else experienced the reality of my calculations? Have i missed something?

I suppose when i gain more experience to move up the salary ladder in a couple of years, or when the child is old enough for school, it may be in my interests to work full time but it seems pointless now.

The worst thing is that in two years i will HAVE to go into full time employment on a training contract, but oh well, maybe my mother will have mellowed enough to take care of my kid by then.

Sigh...
This is particularly difficult for me, i'm 24, this is an unwanted pregnancy, i despise being pregnant already as i am sick and putting on masses of weight because i can only eat chips and chinese takeaways and am constantly having attacks of hyperglycemia, and right now all i'm thinking about is how much i could be putting away to by a sustainable woodland with if i didn't have to fork out money for baby things and childcare and stuff for this unexpected little person...i was too scared to have an abortion. I'm sure if i don't let it become a brat I will see the benefits...just not sure what the point of having kids is yet. :-(

OP posts:

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Original poster

practicallystupid · 13/12/2008 22:45

think i just went on a rant, 'unwanted' means 'unplanned' - if i really didn't want it i probably would have gone through with the abortion. I'm still early pregnancy so it's a matter of coming to terms with the changes going on in my body and the fact i didn't plan on being a single mum when i had such a promising future. I've already talked to everyone under the sun, it's fine, it's doable, i'll probably find it rewarding in time, it's just a shock is all.

OP posts:

lou031205 · 13/12/2008 23:07

sorry, but lol at "i can only eat chips and chinese takeaways"

what is to stop you from making your own healthy chinese food

lou031205 · 13/12/2008 23:08

And, yes it is likely that what you are saying is true re: working part-time.

oldraver · 13/12/2008 23:12

Not sure about the 'significant reduction i council tax..I have nearly 10 grand a year, £2,600 of that CTC and my reduction in council tax isnt worth the hassle of claiming

UnfortunatelyMe · 13/12/2008 23:13

yes its right. stupid, but right.

Tinkerbel6 · 14/12/2008 10:04

OP your calculations are slightly wrong, you wont be entitled to IS when working 16+ hours so wont be entitled to full housing or council tax benefit, you will be claiming child and working tax credits and child benefits.

I hope that you start to eat healthy, if you cant do it for yourself do it for your unborn child.

sticksantaupyourchimney · 14/12/2008 10:18

Erm, I rarely say this but my trolldar is beeping here. OP, I am really sorry if I'm wrong, but there has been an absolute rash of posts about a young woman with an unplanned pregnancy, all articulate but fairly hysterical and all seeming to be set up to invite either ringing endorsements of abortion or some sort of unlikely rant to prove a point someone's trying to make.

Coldtits · 14/12/2008 10:34

Well, I don't know how you've worked that out. I work 16 hours a week at the minimum wage, pay about 60% of my rent and ALL my council tax. I think you need to look through your figures again.

As someone who believes hard work should be rewarded, I'm sure you'll have a different opinion on which is the harder option when you actually have your children.

Simplysally · 14/12/2008 10:41

I get the max discount on council tax and I earn more than that.

I presume this baby has a father so why not get him to pay some maintenance if you feel so strongly about not taking it from the taxpayer in the form of tax credits etc. It takes two you know.

Coldtits · 14/12/2008 10:43

Hmmm. Maybe I need to check through MY figures again!

NotDoingTheHousework · 14/12/2008 10:46

This reply has been deleted

Message withdrawn

Simplysally · 14/12/2008 10:48

I'm the only "adult" in the house which why I get that . I don't have help with my rent.

Coldtits · 14/12/2008 11:34

Ohhh you mean the single adults thing? I see what you mean now, I thought you meant CT benefit - I get the single adult's thing too!

IllegallyBrunette · 14/12/2008 11:37

I will be doing 22 1/2 hours and will have to pay all of my council tax, but will still get just over half of my rent paid.

fluffles · 14/12/2008 11:40

You're not feeling very warmly towards your little one yet but perhaps when you do you'll find that working p/t until the child is 3 might be best for you and your child as well as financially... working full-time as a mother of a baby is not easy.

When the child is 3 you get nursery vouchers for childcare and then after that there's school which is free. i don't know how the calculations work out after the age of 3 but at that point i would hope f/t work would be more financially rewarding.

Aimsmum · 14/12/2008 11:58

Message withdrawn

IllegallyBrunette · 14/12/2008 14:17

You have to pay all of your rent Aimsmum ??

I hope the figures I have been given are right. If i ended up having to pay all of my rent then i'd be going back to work for no more than I get now.

mashedup · 14/12/2008 14:53

I work 25 hours per week, pay 80% of my rent, all my council tax, have two DCs, get WTC and CTC, but no Income Support, and although I manage, I'm certainly not rich. I thought if you were working more than 16 hours per week, you couldn't claim Income Support.
I'm better off than if I claimed benefits, and I enjoy working. I will be going f/t in the New Year, but will have to pay full rent, and my tax credits will be reduced.

allgonebellyup · 14/12/2008 15:21

i work 30hrs a week and am only on 12k a year, i do get £178 a week WTC at the moment for my 2 dc, but that will go down to £129 in April.

i want to start teaching next year, but as a full time, mega stressed out teacher i will only receive £50 a week more (in wages)than i have to live off now with quite a laid back job/hours.

Makes no sense to me.

allgonebellyup · 14/12/2008 15:26

oh and i get no help paying my £850 mortgage on my own.

Aimsmum · 14/12/2008 21:15

Message withdrawn

AMAZINWOMAN · 14/12/2008 21:42

I want the name of your takeaway!!

How can you spend £15 per week on food and live on takeaways?

IllegallyBrunette · 15/12/2008 12:03

Ahh i see Aimsmum. I am also in a HA property but my rent is nearly £400 a month, perhaps thats why I will be entitled to some help.

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