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Original poster

Universal credit vs returning to work

53 replies

Amichelle84 · 19/02/2022 15:26

I don't know what to do for the best so looking here for advice from those more savvy than me.

Currently rent privately with partner and we have 2 babies under 2.

I'm on mate leave and due to return in June.

We both work, I've been in my job for 10yrs + and partner has just started a new contract job which he loves. Has been made redundant etc in the past and he's finally in a job he loves which has great potential for future promotion etc.

I earn a few hundred pounds more a month but hate my job.

We have saved enough for a 5% deposit and are currently looking to buy. I'm feeling anxious about this given our lives are so up in the air and cost of living rising etc.

We cannot afford childcare for us to both work full time. I am not able to return to work part time.

If I gave up work to care for kids full time would I be able to apply for universal credit?

Just worked out our monthly expenses based on just partners salary and we'd have about £200 left to spend on food and anything else which is not a lot.

If I do, should we stay renting for now and wait to buy?

I've never claimed benefits before so am a bit unsure of what to do for the best.

I'd be happy to get a weekend job if that would be better than getting UC.

OP posts:
Akire · 19/02/2022 15:33

UC depends on household income and basic allowance for each adult and child it doesn’t replace your wages if you decide not to return. If the benefit system deem you don’t have enough to live on with one wage then yes you would be entitled to some UC. You can easily try a benefit calculator and see what you may get before apply.

Hawkins001 · 19/02/2022 15:35

@Amichelle84

I don't know what to do for the best so looking here for advice from those more savvy than me.

Currently rent privately with partner and we have 2 babies under 2.

I'm on mate leave and due to return in June.

We both work, I've been in my job for 10yrs + and partner has just started a new contract job which he loves. Has been made redundant etc in the past and he's finally in a job he loves which has great potential for future promotion etc.

I earn a few hundred pounds more a month but hate my job.

We have saved enough for a 5% deposit and are currently looking to buy. I'm feeling anxious about this given our lives are so up in the air and cost of living rising etc.

We cannot afford childcare for us to both work full time. I am not able to return to work part time.

If I gave up work to care for kids full time would I be able to apply for universal credit?

Just worked out our monthly expenses based on just partners salary and we'd have about £200 left to spend on food and anything else which is not a lot.

If I do, should we stay renting for now and wait to buy?

I've never claimed benefits before so am a bit unsure of what to do for the best.

I'd be happy to get a weekend job if that would be better than getting UC.

To claim uc I believe you cannot just quit then claim,
Akire · 19/02/2022 15:36

Plus any savings over £6,000 are treated as capital so for each £250 over that the assume your receive £4.35 interest (I know laughable) plus over £16,000 in deposit no Uc you will need live off savings.

Let’s say you have £15k saved - £6k that’s £14,000 for Every £250 take off 4.35 month so that’s £243 a month off any UC claim you have.

Akire · 19/02/2022 15:38

Ok maths wrong should be £10,000 so £174
Sorry

bigdecisionstomake · 19/02/2022 15:39

I absolutely appreciate you have to prioritise the here and now but when making your final decision about whether to claim or to go back to work it's really worth giving some small amount of consideration to the longer term benefits of working too.

I mean for example, pension contributions, career progression and independence should the worst happen and you end up as a lone parent for any reason.

These are often the things that don't get factored in but they are worth some consideration, even if they're not the main priority right now.

FinnulaFloss · 19/02/2022 15:41

There's no way to say without knowing your DH's salary and how much you have in savings.

You may not be entitled to anything if either is above a certain level.

LakieLady · 19/02/2022 17:25

Use one of the online calculators to work out what you might be entitled to if you gave up work, OP. I think entitledto.co.uk is the easiest to use.

But I think you need to consider other factors, like what will be the long term impact on future earnings if you took a few years out, what if DP got made redundant or you split up.

HalfShrunkMoreToGo · 19/02/2022 17:34

What would childcare costs be?

With just your partners wage you have £200 left over after all bills paid so anything you add is disposable income.

You say that you earn more than your partner so I'm just trying to gauge how that wouldn't cover childcare and leave extra for the pot?

Starwreck · 19/02/2022 17:37

It depends on your household income and how much you have in savings, there are online calculators. You should be okay as you have small children in terms of voluntarily leaving a job and claiming, but worth double checking that. Personally I wouldn't leave work and rely on someone else, but it's up to you. Consider pension contributions and all that boring stuff as well, what has your partner said about childcare etc?

Babyroobs · 19/02/2022 17:43

Do you have savings over 16k then you won't be able to claim UC. Anything over 6k will reduce the amount you get.

Movingonup22 · 19/02/2022 17:47

You should prioritize buying a house now if you can - it is not definite but it is very much more likely that property prices will continue to increase and if you only have a 5% deposit you will soon not be in a position to buy.

Soontobe60 · 19/02/2022 17:57

If you say that childcare costs precludes you returning to work, yet just on DPs salary you have £200 a month left over, then you must be able to pay for childcare! You could always return to work and your dp stay at home if you’re the higher earner.
Choosing to be a SAHM is a lifestyle choice. Your dp earns enough for you to make this choice. I doubt UC will be awarded in your situation.

RedskyThisNight · 19/02/2022 18:06

I think you would be made to give up a permanent job (even if you hate it). What happens if DH's contract doesn't get renewed?

Sounds like you'd be better to look for another job, possibly one that you can work round DH to minimise the need for childcare. If you don't earn enough to cover childcare have you looked at whether you are eligible for the childcare element of tax credits? Also, remember that you are at the most expensive point for childcare. If you can get through the next year or so it will start to get cheaper.

Original poster
Amichelle84 · 19/02/2022 18:24

Thanks for your messages everyone.

So after tax etc our incomes p/m are:

Me: £2,600
Partner £2,400

Nursery full time for both where we live is £3,465 using our sons previous fees as an example which is pretty avg for around here.

Rent is £1250 then add bills etc on top...

My travel to work would be near £400 too where as he works local so that's significantly reduced.

I've said I would quit my job and work part time but only if he's given a perm position. I wouldn't risk it whilst he's on a contract.

OP posts:
Overthebow · 19/02/2022 18:27

Going from take home pay your partners income is around £40,000 per year? I very much doubt you’ll get UC with that salary but you can try putting it into Entitled to and see.

Original poster
Amichelle84 · 19/02/2022 18:27

We can get tax credits which makes a bit of a difference. I also just thought to look at child minder/live out nanny to see if that makes a difference.

OP posts:
Piggyk2 · 19/02/2022 18:30

UC won't pay any amount towards your mortgage even if you or your partner got made redundant so be aware OP.

How secure is your partners contract. Can you look into compressed hours? Working from home at all?

As you have 2 babies under 2 what about a childminder?

Piggyk2 · 19/02/2022 18:32

@Overthebow

Going from take home pay your partners income is around £40,000 per year? I very much doubt you’ll get UC with that salary but you can try putting it into Entitled to and see.
I think she would. OPS rent is huge! Plus nursery cost for 2 kids.. UC would definitely help if OP didn't return back to work.
HalfShrunkMoreToGo · 19/02/2022 18:32

When does your oldest turn 3, as they would be entitled to 30 hours term time funding from the beginning of the first term after they turn 3.

You can use the tax tree childcare which reduces childcare cost by £500 per child every 3 months

www.gov.uk/tax-free-childcare

You may also find a childminder is a more cost effective option or that a second child gets a discount, our private nursery did a 10% fee reduction for 2nd children.

Have you explored any flexible working options for your job like working from home to reduce travel costs a couple of days a week or compressed hours so you work full time over 4 days instead of 5 to reduce number of days you need to pay for nursery?

Original poster
Amichelle84 · 19/02/2022 18:37

We're based just outside of London for context on the rent and that's for a 2 bed. It's discounted too as we rent off of a friend.

My job role requires me to be on site sadly and I can't wfh or do reduced hours as they'd have to employ someone else to cover that time.

OP posts:
formalineadeline · 19/02/2022 18:38

Or tax free childcare if you're not using childcare vouchers. www.gov.uk/childcare-calculator

Original poster
Amichelle84 · 19/02/2022 18:38

The eldest turns 3 in a year and a half.

OP posts:
RedskyThisNight · 19/02/2022 18:43

The issue is that childcare cost. I assume you must live in an expensive area? Have you looked at the cost of childminders or even a nanny, as you have 2 children? The two of you are on decent salaries, it's shocking that you can't afford it.

endlesslystandingonlego · 19/02/2022 18:44

Use entitledto or turn2us, put all your circumstances in to the calculator.

No one here can tell you whether you would get any uc.

formalineadeline · 19/02/2022 18:50

I'm feeling anxious about this given our lives are so up in the air and cost of living rising etc.

Being on UC would also bring the anxiety of losing control over your finances, the arbitrary changes that can be made, requirements that can be imposed, that it can be tinkered with at the whims of politicians, that you can be sanctioned and lose all your income for extensive time periods...

A home is a big responsibility but it brings security and reduces your living costs - people get nervous about taking it on because it's a big responsibility, it's normal to feel that way but doesn't mean it's wrong to do.

UC would be inherently insecure. I doubt it'd leave you any less anxious. If you were relying on it for rent and they further capped it so it wasn't sufficient to cover your rent, what then?

We cannot afford childcare for us to both work full time. I am not able to return to work part time.

Cannot afford in what sense - no money for food or just not as much surplus as you'd like?

After using tax reliefs for childcare costs etc?

Based on real quotes and budgets not estimates?

Based on mortgage rather than rent?

Having looked at making changes for the few years where the cost is highest?

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