Housing Benefit and Full Time Wage

nat1970 · 2 September 2015 at 9:10AM

Hi I current work Part Time 25 hrs per week and earn approx £19K the Housing Benefit peeps have told me that I have been over paid HB and have cut my entitlement by atleast £300 per month, and I am paying back to overpayment I now am struggling with rent etc and I am looking at going back full time,

My co have offered a salary of approx £30K and I will have to pay £200 per month in child care I wont get any tax credits help.

I am a single mum and trying to work out if it is worth the extra hours or not.

Any advise please :j

HappyMJ · 2 September 2015 at 9:13AM

You're asking if earning an extra £11k is worth it or not with an extra £2,400 of annual expenses? Really...it's a no brainer take the full time job spend the £200 a month on child care don't claim any more benefits and you'll be much better off especially in the long term.

The overpayments are now a debt and you can pay them back in manageable instalments. If £50 a month is all you can manage then that's what they'll have to accept.

nat1970 · 2 September 2015 at 9:30AM

Hey sorry maybe I did not explain it properly so today with the benefits and my wage I get £2058. going full time and taking off £200 per month child care I would bring home £2083 - £50 to HB = £2033 so more hours and less money does that make better sense ?

merlin68 · 2 September 2015 at 9:32AM

Its a no brain er, with all the changes to welfare coming in. You wont be paying childcare for ever. I'd grab it while you can 30k is a huge salary.

nat1970 · 2 September 2015 at 11:15AM

Hey it will be school aftercare but I just presume that the salary is too high to get help taxs credits has always been a sticky point for me as they always get it wrong! I know I will be better off full time but will miss being there before and after school for my little one ;-(

nat1970 · 2 September 2015 at 11:17AM

Also my rent is £1300 per month for a 2 bed property so salary whist is huge by the time the bills and car finance are cleared there really is not a huge amount left over.

HappyMJ · 2 September 2015 at 11:22AM

nat1970 wrote: »

Also my rent is £1300 per month for a 2 bed property so salary whist is huge by the time the bills and car finance are cleared there really is not a huge amount left over.

You might still get a bit of housing benefit. What's the 2 bed LHA rate for your area?

Caz3121 · 2 September 2015 at 11:25AM

nat1970 wrote: »

Hey it will be school aftercare but I just presume that the salary is too high to get help taxs credits has always been a sticky point for me as they always get it wrong! I know I will be better off full time but will miss being there before and after school for my little one ;-(

threshold is higher with childcare and it will be a while before your full £30k would be used for the calculations due to changing part way through a tax year and the disregards
for simplicity assume change October
Current salary £19k and (assuming this was the same last year) the award is based on the £19k
increase this year to £30k in October means new total for tax year = £24.5k, due to the disregard this would mean this years award would be based on £19.5k so a small reduction however you would receive the 30 hour element and childcare contribution so overall a likely increase
16/17 award would be based on £24.5k initially but you are earning £30k and because of the disregard the revised award would be based on £27.5k (updated due change of disregard as post#12)
17/18 award now reflects your £30k salary

NYM · 2 September 2015 at 11:28AM

If you agree £50p/m to repay the overpayment, you will have to find the additional £350p/m from somewhere.

nat1970 · 2 September 2015 at 12:38PM

Hi it is £302 per week

nat1970 · 2 September 2015 at 12:38PM

LHA is £302 per week

Housing Benefit and Full Time Wage

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free