Am i mad, or is there more financial incentive for single parents to work part time?
On entering employment after i finish my course i am set to earn 24,000 gross full time, i worked out that after council tax and ridiculous childcare fees because i'm not entitled on that amount to hardly any tax credits or childcare help etc, i'd be able to save around 7 grand of that at MOST (ppl keep scaring me how expensive kids are, but i have a very frugal lifestyle and buy EVERYTHING second hand if i can...and i survive happily on 15 pounds a week for food.)
But working part time, i'd be earning around 8,000 on around 16/18 hrs a week in the same job, BUT i'd be given a little over 13000 in tax credits and income support for use on childcare etc! So i can basically stick the whole of my earnings in investments. AND be awarded full housing benefit and a significant reduction in my council tax! As someone who has always believed that hard work should be rewarded i am shocked that the british welfare system undercuts working mothers who want to be out there full time (nothing wrong of course if you want to stay at home) but in reality doing so actually leaves me with LESS money the more i earn!
I'm going to be a single mother so no partner to consider.
Is this true for you? Has anybody else experienced the reality of my calculations? Have i missed something?
I suppose when i gain more experience to move up the salary ladder in a couple of years, or when the child is old enough for school, it may be in my interests to work full time but it seems pointless now.
The worst thing is that in two years i will HAVE to go into full time employment on a training contract, but oh well, maybe my mother will have mellowed enough to take care of my kid by then.