Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

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.

Flip

Original poster

I'm better off on benefits

18 replies

cookingmama02 · 05/04/2023 23:19

So I got a new job it's minimum wage I'm 19 with 2 kids. I'll get around £1200 before taxes. The problem is I'm currently on universal credit so I get around £639 a month but my rent is paid for me automatically. I get council tax deduction being on benefits, I also get £36 a week child benefit and £200 a month Scottish child payment all of which will get stopped if I start working. So all together I get around £1037 a month ( minus rent ). If I start working I will have to pay my own rent, full council tax, no extra benefits and I will have less money so what would be the point? I do want to work but I know I will struggle a lot more.

OP posts:

bellswithwhistles · 05/04/2023 23:22

And this is why people like yourself stay on benefits!

However, I'm guessing you don't want to stay on benefits for the rest of your life?

Where's the father of your two kids? Between you both, can you not share looking after the children (to save on childcare costs) - maybe one work days and one work evenings?

FlyingCherries · 05/04/2023 23:25

That’s not the case. You will be entitled to a significant amount of universal credit plus child benefit. You’ll be significantly better off in work. Go to entitledto and do the calculation. Congratulations on your new job!

IDontWantToBeAPie · 05/04/2023 23:26

I guess the point would be so you could get back into work and work your way up to a higher salary than the benefits cover eventually.

And so that you have a work history when your children age out of benefits age and you get less money for them.

I'm not sure if benefits claimants get pension credits? Working also adds to you qualifying for the state pension (you have to have paid tax for a certain number of years to get it) and you could start a private pension too.

You're very young so you have time to figure it out. Especially if your children are very young. At a certain age you'll be expected to look for work again (unless your kids are disabled etc Ofc) to get your benefits.

£1200 isn't great but it's not bad! It's what I was earning as a 22year old graduate.

BringItOnxxx · 05/04/2023 23:27

According to this you'd get £1400 per month in benefits on top of your wages. Use this ref in turn 2 us EKW-7XB-R4K. I estimated your rent as £600 and picked a random postcode for council tax.

Lbnc2021 · 05/04/2023 23:27

You’ll get universal credit on top of your wages and the Scottish child payment and child benefit

Pubesofsoberness · 05/04/2023 23:28

I earn that after tax and still get £1000 in universal credits

Dracuuule · 05/04/2023 23:34

If you stay on benefits, you'll always be on that kind of money. If you start work, you're salary increases, you get more employment opportunities and you'll be on more money pretty soon.
I doubled my basic salary between age 20 and 25.

CornishTiger · 05/04/2023 23:41

FlyingCherries · 05/04/2023 23:25

This.

comedycentral · 05/04/2023 23:43

I'd carry on as you are for now, especially during the financial crisis. But I would also train or take courses if possible to ensure I had something for my CV in the future.

YerAWizardHarry · 05/04/2023 23:45

You’ll still get a massive chunk of UC (and Scottish Child Payment etc) and you can also claim 85% of childcare costs back too

backawayfatty1 · 05/04/2023 23:55

You will still get some UC, child payment, child benefit

You would get the lower work allowance as have housing element

Deduction could be calculated using this ...
your wage-344= answer x 0.55 = deduction. Take this away from your full UC amount & that's what you'd get on top of wage

GGBOY · 06/04/2023 15:26

Hi OP
You will be better of working and on uc .

Babyroobs · 06/04/2023 15:56

You don't completely lose your Uc when you start work, it reduces on a taper and you get a work allowance meaning a decent amount of wages is disregarded before your earnings even reduce your UC. people on UC are generally much better off working. have you even done a benefit calculation to see what difference working would make? they are making childcare more generous and to be honest with all the changes with UC coming in in the next few months you won't have a choice to not work once your youngest child reaches age 3.

SouthCountryGirl · 06/04/2023 16:48

"I'm not sure if benefits claimants get pension credits? Working also adds to you qualifying for the state pension (you have to have paid tax for a certain number of years to get it) and you could start a private pension too."

You can get them if you claim child benefit

DeedlessIndeed · 06/04/2023 17:23

Dracuuule · 05/04/2023 23:34

This, 100%.

And the difference will become more and more as you get older. You might be happy with 1200 per month now, but when you're kids are teenagers and everything costs so much more you'll be grateful for the higher wages!

SeeWhatYouGetWhenYouAskAStupidQuestion · 06/04/2023 17:25

Lucky you. Does the father (or fathers) pay towards the child (children)?

DarkDarkNight · 06/04/2023 17:33

You will continue to get Child Benefit, and if you live alone you will get a 25% council tax reduction. When I worked part time I got a decent amount of tax credits, p housing benefit but I was certainly better off than being on benefits and not working at all. Don’t forget you may get a better paid job or a promotion, whereas with benefits your payments will never increase at the same rate.

MrsSlocombesCat · 11/07/2023 13:37

You’re misinformed. You will actually be better off because the FWP only deduct 55p of each pound you earn so you will always be better off working.

Flip