Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

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:
formalineadeline · 19/02/2022 18:51

I sincerely doubt that UC will keep pace with cost of living changes as much as a salary either. The current political ideology is to depress UC and make life as tough for claimants as possible.

Original poster
Amichelle84 · 19/02/2022 19:09

@RedskyThisNight

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.
We live in a fairly expensive area I suppose. We've thought of moving but then travel just eats up the saving in rent.

I've just had a message back from a childminder which makes a bit of a difference.

I'll do another expenses sheet based on that too.

I'd definitely like to keep working if it's worth it, being a SAHM with 2 isn't easy Confused

OP posts:
Original poster
Amichelle84 · 19/02/2022 19:13

@formalineadeline

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?

That's true with regards to anxiety being on UC, hadn't thought of it like that.

I meant we can't afford full time nursery and buy food, clothes for the kids, hike in elec etc. We don't live lavish lives, we don't go on holidays, don't smoke or go out a lot.

Because my partner is on a contract we can't get a great mortgage offer so our repayments would be more than we currently pay, then we have insurance and responsibility of replacing goods etc if they break.

I'm really worried about the impending hike in elec costs and I just worry we will be biting off more than we can chew.

I'm going to do some enquiries with childminders and live out nannies - I think that may be the way forward.

OP posts:
Babyroobs · 19/02/2022 20:03

@Amichelle84

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.
Not sure what you mean by this comment? Do you already receive tax credits now?
Original poster
Amichelle84 · 19/02/2022 20:21

I mean we would be entitled to it. We don't currently receive it as children aren't in childcare yet.

OP posts:
formalineadeline · 19/02/2022 20:44

Do check whether you will be better off claiming tax free childcare instead (that's what the childcare calculator link upthread does).

May not be, but always best to make sure you're claiming the most effective option!

PaniniHead · 19/02/2022 20:48

You can’t make a new claim for tax credits anymore. How much do you have in savings?

RosaBaby2 · 19/02/2022 21:00

This reply has been deleted

Message withdrawn at poster's request.

Original poster
Amichelle84 · 19/02/2022 21:01

Sorry - I don't mean tax credits, I meant tax free child care. It's been a long day of spreadsheets Confused

I've done 3 different spreadsheets based on where we live now and I haven't included any potential UC.

IF my calculations are correct we can definitely both work and get a childminder and we should have roughly £600 a month left after bills for food and anything else.

We'd have about the same left over if I went back to work and partner became a stay at home dad.

We'd have £350 if I stayed at home with kids and partner went back to work, then anything on top from a part time job I could get on weekends.

So thank you all, it's not AS bad as I thought.

This would be based on us as we are and continuing to rent this flat and not moving.

I agree we should probably continue to try and buy somewhere, no doubt I'll be doing more spreadsheets to work all our expenses out again based on that.

Thankful for all the advice - we've been burying our heads in the sand a bit.

OP posts:
RosaBaby2 · 19/02/2022 21:02

Please ignore my above post I'm on crack and its totally wrong. The website is great though if you do it right Confused

Original poster
Amichelle84 · 19/02/2022 21:03

@RosaBaby2

Not sure about your savings but assuming they're under the limit for this calculation.

You would receive £1220.422 from UC if you gave up work, you are well within your rights to quit work and claim UC for childcare reasons.

Please don't use ENTITLED TO/TURN 2 US to work things out they're well known to be inaccurate.

This website started from a very helpful Facebook page called universal credit essentials...

Www.uceplus.co.uk

Thank you! I will still check this out and re-evaluate.
OP posts:
christingle2 · 19/02/2022 21:03

Once you buy, I don’t think UC will help with your housing costs at all. Once you’ve claimed long term, you can get a loan for mortgage interest

Original poster
Amichelle84 · 19/02/2022 21:03

@RosaBaby2

Please ignore my above post I'm on crack and its totally wrong. The website is great though if you do it right Confused
Hahaha!!
OP posts:
HalfShrunkMoreToGo · 19/02/2022 21:06

Sounds good @Amichelle84 and bear in mind it's temporary, in a year and a half you get the 30 hours childcare for your oldest, a year and a bit later you get that for your youngest and your oldest will be getting ready for school and you'll just have the wrap around care to pay for them.

There's also room for progression and pay increases for both you and your partner in that period.

Dd went to nursery from 9 months, at that point between DH and I our household income was £46,000, our childcare bill was over twice our mortgage. Now DD is 7, our household income is £102,000 and that's all because I was able to progress and quadruple my salary because I was back at work.

blublub · 19/02/2022 21:09

Don’t forget that when you’re youngest turns 3, I think, to claim uc you have to look for a job anyway of 16hrs pw (raising to 25 when they turn 5). That’s even though your partner is working full time. Also if you’re not married and give up work it will leave you up the creak without a paddle if he leaves…

Original poster
Amichelle84 · 19/02/2022 21:16

@HalfShrunkMoreToGo

Sounds good *@Amichelle84* and bear in mind it's temporary, in a year and a half you get the 30 hours childcare for your oldest, a year and a bit later you get that for your youngest and your oldest will be getting ready for school and you'll just have the wrap around care to pay for them.

There's also room for progression and pay increases for both you and your partner in that period.

Dd went to nursery from 9 months, at that point between DH and I our household income was £46,000, our childcare bill was over twice our mortgage. Now DD is 7, our household income is £102,000 and that's all because I was able to progress and quadruple my salary because I was back at work.

You're right, it's just temporary.

We knew it would be a struggle, and now the struggle is here.

OP posts:
over2021 · 19/02/2022 21:20

Assuming your 5% deposit is based on house prices in your expensive area so likely to be more than 16k?

Original poster
Amichelle84 · 19/02/2022 21:24

@over2021

Assuming your 5% deposit is based on house prices in your expensive area so likely to be more than 16k?
We have £20k deposit for a house but that's being gifted so not technically in our account. We have savings of £5k.
OP posts:
Moneyhunter · 19/02/2022 22:00

Can your partner give up work to do the childcare as you are the higher earner?

Babyroobs · 19/02/2022 22:31

@christingle2

Once you buy, I don’t think UC will help with your housing costs at all. Once you’ve claimed long term, you can get a loan for mortgage interest
You cannot claim help with mortgage interest unless you have been on UC for 39 weeks with Zero earnings. Therefore this is very unlikely to apply to op ! If op gets a mortgage, and therefore no longer claims rent element she will have a higher work allowance on her claim- this means that the first £553 of earnings is disregarded before Uc take deductions for earnings. the amount is lower for those who rent. So with a mortgage she would benefit in this way.
Babyroobs · 19/02/2022 22:32

@blublub

Don’t forget that when you’re youngest turns 3, I think, to claim uc you have to look for a job anyway of 16hrs pw (raising to 25 when they turn 5). That’s even though your partner is working full time. Also if you’re not married and give up work it will leave you up the creak without a paddle if he leaves…
If op's dh earns something like £530 per month ( can't remember the exact figure) she would be put into the light touch group and really wouldn't be forced to look for work.
blueshoes · 19/02/2022 22:42

OP, you call him your partner. Are you married? If not, don't give up your job.

AnotherEmma · 19/02/2022 22:54

@blueshoes

OP, you call him your partner. Are you married? If not, don't give up your job.
This. It sounds as if you want to go back to work, but if you decide not to, you should get married.

Do you get enhanced (contractual) maternity pay or just SMP?

Original poster
Amichelle84 · 20/02/2022 08:37

We're not married but are engaged.

I get enhanced mat leave and don't have to pay any back if I don't return to work, I just have to give my 3 months notice which I'd have to give next month.

I certainly won't leave my job whilst he's still on a contract.

To be honest, I don't really want to return back to that job - I have no job satisfaction but the salary is good.

I've done some reworking and I think we can both work and afford a childminder opposed to nursery and have enough for living although we will have to budget which is fine.

OP posts:
over2021 · 20/02/2022 09:10

@Amichelle84

We're not married but are engaged.

I get enhanced mat leave and don't have to pay any back if I don't return to work, I just have to give my 3 months notice which I'd have to give next month.

I certainly won't leave my job whilst he's still on a contract.

To be honest, I don't really want to return back to that job - I have no job satisfaction but the salary is good.

I've done some reworking and I think we can both work and afford a childminder opposed to nursery and have enough for living although we will have to budget which is fine.

You really shouldn't give up your financial independence in you're not married (amd don't listen to anyone who tell you that you're his "common law wife" Hmm

It doesn't sound like the right time to give up work in any event- the job market is buoyant at the moment. If you want to change roles now is the time to do it!

Swipe left for the next trending thread