AIBU to stay on UC instead of working

[Lulubon]

Hey I'm looking for outside insight...

We are currently receiving around £950 UC/Month
this is made up of a standard couples amount, child tax and housing benefit. Plus £84 child benefit

My partner works full time, he earns around £1400/ month
Our rent is high but standard for our area (£1075/ month for a 2 bed flat)
We cant move due to contract + we would have to move quite far to lower rent, meaning further from partners work- costing more in travel etc which would make it around equal we've checked this...

We have 1 child aged 1.5 years

We struggle with money but make do- usually dipping into the overdraft to afford food shops/ petrol though. We dont spend on extra luxuries, no dinners out/ new clothes, I try to buy everything second hand. Though I do spend some on toddler groups with my son (usually 2x a week max)

I have a 0 hours job but we cant afford childcare (£100 a day is standard in our area for nurseries/ £7+/ hour for childminders, though ive never managed to find space anywhere!!! I'm 190th on the waiting list for one nursery!?) so I don't take many shifts.

I'd like to work a part time job in order to come off UC as it gives me huge anxiety relying on it, we'd also like another child soon but obviously I'd like to earn more before we took this step. My issue is, even if I work full time, im not going to be bringing in ANY extra money, in fact LESS!?

We have estimated that we will be WORSE off if I return to work due to childcare costs... what can we do?! I feel so trapped! how do we get out of the hole of UC?!

The most I will make a month on a part time job is around £930/ Month
and childcare will be minimum £400-500/month

With a full time job could potentially earn £1400/month with childcare around £900/month min, meaning take home would be £500 after childcare costs.

The upside is, my partner has just completed a qualification meaning he will be eligible for a higher paid job but its marginal and will take from our UC but we should end up slightly better off... and it depends if he lands a better job too.

can anyone help?! am i missing something obvious???

If you want another child I think I'd just go for it now and accept that for the next five years or so you'll be relying on UC. Once they're both at school childcare gets a whole load easier and your DP might be earning more by then too so that would be the time to try to earn more and get off UC. Otherwise you'll earn more but be hardly any better off, and then have to start again with childcare needs when you have another child. No law saying you can't have a second child just because you're on a low ish income.

Would you be able to get some of the childcare costs covered through UC? You used to be able to under tax credits but don't know how it works on UC.

You'll need to check but I'm sure UC pay up to 80% of the childcare costs.

@Firefliess this is what I was thinking but I also feel worried I’m being stupid to jump in knowing we aren’t in a fab situation, though I know I’ll be in the same situation all over again when we do go for a second in a year or so anyway 😫🤦🏼‍♀️

UC will pay up to 85 percent of child are costs up to a limit of 646 a month for one child. It's paid in arrears.

@Schoolchoicesucks hey, from what I understand no… but I’m terrible with the UC rules etc, I THINK you have to earn under £16,000/ per house hold…

Have you used a benefit calculator to get an idea of childcare costs covered by UC? You should be entitled to something with those numbers.

thanks everyone I didnt realise this, I cant find a calculator for it anywhere?!

Try putting your details in to these ones and see if you get a consistent estimate:

www.gov.uk/benefits-calculators

Compare your current situation with a hypothetical one - so include potential wage and childcare costs to see if you'd be better off working and what childcare support you may get under UC.

Use entitledto and you can do mock ups of various wages and scenarios and it gives a good break down of everything.

Thank you all, I’ll have a go on the calculator tomorrow. I suddenly feel 10 tons lighter knowing there may be some hope for us 🙏🏻

You would get a childcare element added at 85%. For each additional pound you earn you would only lose 55p of UC. Can you not work some shifts around your husband's work?

I think you should either work or stick to one child if you'd need benefits for the second one. It doesn't seem right to me to make this conscious choice to have a child when you use your overdraft for basics.

I think it’s better if you work as being out of the market will do you no favours in the long run.

You can’t afford another child if you are already dipping into your overdraft to buy food, simple.

UC will cover up to £646 of childcare costs a month. As long as you are both working you can claim the costs.

Why on earth would you have a second child when you can barely afford the child you have and can't save any money for their future?

This is hilarious. I’ve said I WANT another child and that I WANT to work so I wanted to see how I can make that possible. I DONT want to rely on ‘taxpayers’ hence why I’m NOT having another child until I work.
but may I remind you that I have been a taxpayer my whole working life until I became a parent. This country doesn’t support working mothers. It’s very simple. Having said that now that I can get support for childcare I am going to work.

Sorry but would anyone really work for £300pm due to spending £500 on childcare?

Also sorry but you ‘taxpayers’ are concerned over me receiving £900 a month because I’ve been raising my child- an extremely important job rather than paying someone else to look after them while I earn next to nothing???

Concern yourself with the billionaires in this country who pay no tax, I promise you it’s a lot more then £900 😂😂😂😂😂

You can't afford another child.