UC - Single mum

[username268]

I am a soon-to-be single mum. After fleeing domestic abuse in October, I started receiving UC for the first time. I am ex-military and have worked all my life. My dream, however, is to become a clinical psychologist. During the second year of uni, I was abused by a lecturer (long story, hence the pregnancy). I spent most of my savings and ended up with around £20 K of student debt without a degree (though I really do want to finish it!).

I made some bad decisions, no doubt about it. Rather than dwell on the past, I'm keen to move forward but am seriously struggling to navigate the UC system.

AIBU to think that the benefits system is not designed for people trying to get out of it?
I'm struggling to make a plan and would be very grateful to hear what you would do in my situation.

Here are some details. Since the beginning of October, I have received £428 from UC. (That's to last until the middle of Feb). I've been doing some freelance work on the side (literally making less than £120 p/w), and have to declare my earnings each month. For every pound I earn, UC takes 50p of benefits. I am trying to rebuild my savings (currently just over £6k). I have been living on £25 a week to do this, and refuse to spend money on stuff I don't need. Obviously, I'm now getting charged for increasing my savings. I don't get housing benefits because I am now living with a family member (I would be in a DV shelter otherwise).

My kid is due in Feb, so it seems ridiculous to start a new job now. After the baby is born, I will need to try and figure out childcare (which for 3 days a week is upwards of £1k per month!). Realistically, that would mean childcare costs would be higher than my take-home wage, if I can find a job with hours that are flexible enough.

I also can't stay where I am long term so housing is going to be a problem. Waiting lists for social housing are years in my area and I can't afford to rent privately. I would rather save a deposit than start renting, but that seems nearly impossible at the moment.

It just seems to me that UC stops people from being able to help themselves. You aren't penalised in the same way for buying a TV or designer clothes....

I'm super motivated, but I just don't know where to start. What would you do?

Thanks in advance!

When your baby is born you will get a child element added to your UC claim alongside your standard single element. When you go back to work then as you will then have a child you will also benefit from the work allowance meaning a significant proportion of your earnings are disregarded before wages reduce your UC.
When you start paying chilcare you get up to 85% of this paid as another element of UC.
Savings below 6k are disregarded but on Uc any savings between 6-16k there is a deduction ( called tarrif income) off your monthly amount. It is £4.35 deducted for every £250 above the 6k threshold. So yes it's not easy to save on UC but you can still claim with savings up to 16k. With house prices being what they are right now, most people will not be able to save enough on Uc for a house deposit realistically. Some would also argue that this is not the purpose of benefit either, but I do see your point that people are not penalized for spending on TV's , holidays etc.
Child maintenance ( when your baby arrives ) is also not counted as income for UC, it is completely disregarded.

Thank you so much for your answer! I didn't know about the work allowance. That will make things a lot easier. I also didn't realise you could get help with childcare costs for under 3s. I'm in London, where a nursery place for 3 days a week for under 3's is £1,440.75 pm!

Waiting lists for social housing won't be years if you are fleeing DV. I got rehoused within 6 months in a central London Borough when I was put into an urgent category following DV.

Also as you are on UC you should apply for the grant that you can get for a new baby. Sorry I can't remember what it's called maybe ? Sure start grant but is around £500 which will be helpful for baby stuff.

@erniouh I am very fortunate in that I have a family member who has put me up, so I guess my situation is less urgent? I'd feel terrible about taking someone's place who needed to escape DV. I am safe where I am, it's just not ideal. :)

@Babyroobs It is the sure start grant. And yes, that will be a big help.

There is definitely more support than I realised. I guess the thing I'm trying to figure out is how to be no longer dependent on UC. The way the benefits system is set up means it's difficult to help yourself if you get what I mean. I've been trying to think of a long-term plan, but maybe the best way is to do things one step at a time...

U should use this benefits calculator online to see what you would be entitled to.

You can put information in as if your child is already here so for example put a random date of birth when it asks about children don't put your still pregnant.

U can also play about with it and put different working hours/ housing costs etc to see difference in entitlement depending on circumstances to see what suits u best

benefits-calculator.turn2us.org.uk/

You've received a reduced amount of UC because they take student loans into account (whether you've taken them or not - you're still treated as having the money). Once the academic year ends, you should receive the full entitlement. As well as the child element.

I was strongly urge you to apply for social housing. If you're fleeing DV you are the top! You can actually move anywhere in the country if you're fleeing DV (as it might not be safe to stay in your current location). Social housing will help you in the long term.

In regards to going back to university; was it undergraduate or masters? Often you can repeat a year at undergraduate without penalty. Often if you have extenuating circumstance (like you have with DV) then you can get extra funding to repeat years. Talk to you university.