Free childcare allowance affecting my benefits

[Fibi09]

Hello everybody, first time posting, hope I can get an answer as this is causing me so much stress, just before xmas...here goes

I am a single mother with a 3 year old child. I work 21 hours per week and currently claim WTC, CTC and HB. Since September my son has been entitled to the 30 hour funded childcare. The nursery my son goes to are not offering the 30 hours but are offering 15. I therefore added an extra 15 hours childcare and therefore my son is in nursery for an EXTRA 15 hours a week. My childcare costs have gone down by 42 a week (so he goes Monday 9-1, Tuesday 9-1; these are the days I added on) previously he was only doing Wednesday 9-1, Thursday all day and Friday all day.

When I added the 15 hours I was under the impression that it would not affect my benefits whatsoever as wveryone, in the country, no matter their financial situation are entitled.

I therefore didn't tell HMRC or the council. I subsequently had a letter from the HB team asking for proof of my childcare costs, I sent it on, and am waiting a reply! I did not think I had to tell them as as I say above, I thought everyone was entitled. So anyway, I contacted HMRC as soon as I found out I should have told them and made a new claim! I have had my new award letter and it has reduced my tax credits by £60 A WEEK! I am waiting for my new housing benefit claim to come through but am so so so worried that this is going to be reduced also! So anyway ladies PLEASE tell me, in your circumstances, is housing benefit affected by the funded childcare? Are thy going to reduce my HB by the £42 a week I am saving from my nursery?

I have seen a few messages on here, someone has asked a very similar question, however the answers are not clear to me! The way the funded childcare is advertised is that it won't affect your bendits, but from what I can see, it will and is! inam so so confused and am getting no sleep worrying how on earth I am going to pay my rent, and not to mention Christmas!

The way I see it, they are giving me the 15 hours in one hand, but taking it away in the other, by reducing my HB and tax credits? Am I wrong? As my CTC and WTC have gone down, will my HB go up? The council are next to useless and explaining thins and take weeks to get back to me. I really really do need a straight answer asap!

Just would like to point out, the reason I added the extra 15 is because I am helping my father care for my mother as she is poorly so I am just helping him on the Monday and Tuesday - I am not sitting on my but whilst someone else looks after my child! Please please help! Sorry for the long post! Thank you

I'm a housing benefits assessor.

Your childcare costs are taken off your earnings for the HB calculations.

E.g. £200 earning per week with £50 childcare costs = £150 earnings.

You've stated that your childcare costs went down therefore you have had a change I circumstances which you haven't reported. Depending on the calculation you could have been overpaid housing benefit which will be recovered.

Hi, thank you so much for replying! So does that mean that my HB will definately go down? I understand I will have to pay back anything I owe - but what I don't get is, obviously I am not benefiting from the "free" childcare am I as it's being take away from me by HB and tax credits? Thank you

Do you get full housing benefit now or is it reduced? If it's reduced then your housing benefit will be reduced.

Your HB and tax credit are calculated on what your income is minus how much childcare costs. Therefore if your child care costs reduce then you have more income to pay your rent and expenses.

Only 65% of your income is taken into account if your housing benefit is reduced so you will overall be better off once you've paid back the amounts however this won't be as much as you originally thought.

Hi I don't claim full housing benefit. Just a top up. Here are the calculations

Before I added the 15 hours
HB 60 per week
CTC and WTC 208 per week
Childcare costs per week 142.00
Income from work 300 per week
Rent and council tax approx £154 per week

New figures now my son is in nursery
CTC and WTC 150 per week
HB ??
Childcare costs 100 per week
Income Same as above
Rent/council tax same as above

In your professional opinion, how much do you think my HB will go down please?

I don't think I am a stupid person but I have done all three of the online calculations and thy are all telling me hugely different answers.

And as I said above, the council take weeks to get back to me so I really really could do with some idea of what I will be getting!

I really do appreciate your reply and thank you so much for taking the time to help me this evening!

X

The calculators are frankly crap. Even shelter have incorrect advise regarding HB so I don't blame you.

Your tax credits have reduced more than your childcare costs have so I would expect your HB to increase slightly actually. I would suggest calling the HB department and ask the customer service person to add on a note to check your tax credit award (they will most likely already have this information but just to make sure).

Thank ever so much! I am going to get into the HB team first thing this morning and demand an answer. I will let you know x