How is anyone managing to work on uc whilst paying for childcare?!

[blublub]

So I’ve recently moved from tax credits onto uc as a lone parent. Tax credits gave me a payment every two weeks based on my childcare costs over the year. Set amount plus wage coming in, knew where I was money wise. Worked same job/hours for years. Uc changes every month and childcare is paid in ARREARS! So I am always short. This on top of paying for an advanced loan as not paid any money for the first month and them taking out money for working tax credits paid to my ex in 2010. So I start the month approximately £300-400 down from where I was before. No idea how anyone is coping with this! I am living in my overdraft, having to pay charges, dinner money and prescriptions. Working 30hrs a week. Have dropped my hours to 24 to pick up at end of school time but I’m one big bill away from having to give up work all together. The system seems to penalise you for working! How are others coping??

Sounds like you’ve been on benefits for quite a long while. What ages are your kids?

How are you being penalised? Why not work full time to make up that £3/400 shortfall?

Increase your hours?

No I haven’t ’been on benefits a long time, I had a daughter who died a couple of years ago with my ex. He claimed working tax credits, not me. I didn’t even know he did it! My daughter is 8 who i currently take care of. I’m actually looking for useful answers, not some one having a go. I have happily worked these hours for a couple of years after leaving an abusive relationship. Childcare paid for at a smaller percentage than on uc. If I work more hours I will pay more childcare, increasing my problem not solving it! I don’t have any outside help for free.

I have to pay the childcare up front and then get it back a month later. As I said in my original post, that is what the word arrears means. Could you do without that amount of money missing each month on one wage??

That does sound frustrating. You almost need a one off £500 odd payment to pay up front the first month and then you’d be fine from there. Do you have any family you could loan this from and perhaps pay back over time? If you have a job that fits around family don’t give it up! You might struggle to find another. Increase your overdraft so the £3-400 you’re going into isn’t charged and put away as much as you can every £10/20 to again build up that up front lump sum to get out of the arrears you’re in each month? It’s a silly system being paid in arrears I remember when I came back to work after mat leave and had to pay for the first month nursery up front £1000 and then wouldn’t be paid from work til the end of the month!

But you're working 24 hours with an 8 year old, that's not needing (at least) £300/400 worth of childcare each month. I don't understand why you've dropped your hours?

If the benefits don't work for you, try to change things. I understand, I claimed tax credits when my boys were small but it's not sustainable and working to earn more and stop claiming is so much easier!

Would your work consider giving you a loan for your £400 childcare cost? That you paid back over a set time (or a travel cost loan of a similar amount)

It sounds like a cash flow problem if I have understood it correctly, rather than not enough money each month. It would mean you had less each month but might sort the cash flow.

I balance my childcare out with my provider over the year so I pay the same consistently each month. That way I know how much i’m getting from UC and can budget.

now my son is at school I use the breakfast club and after school club that is till 6. I work 38 hours a week. They also do holiday care.

I’m surprised you pay £400 a month for childcare but only work 24 hours and finish in time to collect after school.

I would suggest joining a credit union. You can get a low cost loan if you get child benefit transferred into the credit union account for the repayments. Use the loan to pay into your child care account so the arrears payments don't impact so much. Credit union loans lock in savings that you can only access once the loan is repaid so a good way to build up a buffer pot for emergencies.
You can Google ones on your area.