Cuts affecting working mums on low incomes

[GeorgeT]

I've just spoken to my sister, a single working mum who is facing a reduction of £28.00 per week in her tax credits. She works four days so her childcare costs are quite significant even with one at school. She earns less the £25,000 so is not a high earner. She has been told she now needs to pay back her student loan and is facing a pay cut as her car allowance is being withdrawn.(She is a social worker) This is going to make life very difficult. I thought the philosophy was that work would pay.Is this an example of how the cuts are going to affect working families? She is trying to sell her house to reduce mortgate costs but in the current market it is taking a long time.It has been on the market for over a year. Does anyone out there know of any further help she can get.

GeorgeT

I take on board all you say however if her car allowance is being withdrawn then I hope she wont use her car for work related business.

I too get a car allowance, if mine was withdrawn I would be asking my line manager how I am to travel from my home to see clients and will they be paying my fares (which would cut down my working time and increase my travelling time very inefficient) or providing a company car.

For DarthNiqabi, they have reduced the child care element from 80 to 70%, which as many of us know childcare is a big cost which has gone up. Surverys have shown that many women are reducing the hours they are working so the saving on this is down as tax revenues will be down. This is a no win situation!

Unfortunately yes they are doing. And things are only going to get worse as the cuts bite.

If she hasn't already, your sister may want to go over to the moneysavingexpert site and ask for budgetting advice there. There are some very smart people over there who can advise on how to reduce her costs.

There was a piece on BBC's Breakfast programme this morning about the mileage allowance being cut for social workers and other public sector workers - it seems that the average payment is currently 56p per mile (and as much as 64p per mile in some areas), and this is being cut to match private sector mileage allowance averages. So possibly your sister's mileage allowance is being reduced rather than cut entirely?

Is she in a union? Her union will have an advice line if she is.

As a single mum, she could try contacting Gingerbread for support and advice.

Working Families has a helpline too.

If she's near a CAB (that hasn't been shut down like the one near me :() she could get some good advice about her finances there.

Sorry for your sister. There's lots of evidence to show that single mothers are the biggest losers from the cuts. It's really really shitty :(

PS. I agree with newwave that her employer must pay for her to travel between clients if she has to travel around as part of her work.

I've had my car allowance cut but a slight increase in salary balances it(just) we get mileage & it's in our contract we must have use of a car for travelling between families.

There is also a BBC article here which explains the tax credit changes.

I don't know much about it, but it does say that the child element of CTC will increase above CPI both this year and next to maintain award levels for those earning below the national average. So could it be that some elements of her tax credits are being reduced whilst others are increasing?

I don't know, and am probably not being very helpful, but possibly something worth looking into.

Why is she only earning 25k? Nq swers here earn min 29k (not se).

Can she reduce ccare costs at all? Family/friends?

Def go to mse site for tips.

Start here at £21k . We are lowest in the country according to local debate.

Even if you look at C C as a family expenditure , more single parents are women so it will do.

It was 70% when it first started though

There's been lots about how various welfare changes are going to disproportionately affect women. See TUC report here and Fawcett Society stuff.

Thanks for all your tips. Unfortunately family are too far away to help with childcare - our Mum is in Oz. With friends it is tricky as she can't easily reciprocate. She is quite a thrifty one but it will take it's toll.