Why is my friend only entitled to £16 a week tax cred??

missk_ensington

Hiya,

I am writing on behalf of my friend, she is married with one child who is 4.

She is a student, but works 20 hours a week earning £7,000 a year, and her husband works full-time earning £15,000 a year, giving them an annual household income of £22,000 a year.

I have put these details into entitledto.com and it says she is only entitled yo £16 a week CTC and nothing in WTC. Surely this can't be right?? I would consider a man/husband supporting a student wife and family on £15,000 a low income, and she only had a part time income.

I feel really sorry for them, she works 35 hours a week on student placement, plus 20 hours part time in evenings, and is pregnant again too. They're a young married couple and it just doesnt seem fair that they get barely anything for working nearly 100 hours a week between them.

Also, tax credits are refusing to give her anything at all of her meagre £16 a week to pay for a previous overpayment, but Im sure Ive read somewhere on here that they can only take a certain percentage in overpayment?

To make matters worse her surestart 3-4 year old childcare funding ran out a few weeks ago, the child starts school in september, and shes struggling on a day to day basis gettin friend to look after DS (I've had him the last few days to help) I told her to put him in nursery, but she said tax credits are refusing to contribute anything because she has an overpayment, so now she is facing failing her degree and losing her job!!

Please can anyone help? All posts thanked

DaisyFlower

Life is all about choices. She has chosen to be a student and work part time plus bring two children into her family. Therefore she can't really complain about how little the government helps them.

£22k is not classed as a low income tax credits wise, hence the low payment - however combined with family allowance they will be getting over a £100 a month in benefits on top. They are not raising the family on £15k as their JOINT income is £22k.

Tax credits can stop payments to recoup an overpayment, however if your only income is benefits then I believe there is a set percentage they can take.

There are only 3 weeks left before school starts, I am sure the costs of childcare for those 3 weeks amount to far less than giving up her job. The government funding is there to provide all children with the option of early learning, its not meant to be childcare.

msmicawber

The tax credits situation sounds about right to me - two adults whose combined income is close to £25,000 and one dependent child. How long until the overpayment has been recouped?

Why is she losing her job?

Oldernotwiser

Is your friend a student in HE? Does she receive a student loan?

missk_ensington

Thanks, yeah I guess £22,000 isnt a tiny amount but after tax has been docked out, and they've paid £800 a month rent, and council tax etc etc etc, they have absolutely no money left. She's currently relying on friends to look after her son, but has been let down quite a few times thus has not turned up on her placement or into work, and has been given warnings for her absences.

I know school starts 2nd Sep, but the first 4 weeks the children are only there 1-3pm, which is even harder than if they weren't in at all because it means friends have to drop off, collect...faff about rather than just look after her son for her. I know thye situation as my son starts as well, but thankfully I recently started my own business and so working 40 hours a week on £0 income they give me a decent amount in tax credits, plus I have the flexibility to look after my son, and help friends with theirs.

I finished uni this summer and was at first planning on getting an employed graduate position, but as a single parent with no family, wou;d have had to use all 4 weeks annual leave in September and God knows where that would have left me for Xmas/Easter/the following summer....

Lizard_Lady

i think £22K a year is quite a lot to be honest!! seeing im on just under £7k a year. £16 probably works out about right, she wouldnt get working tax credits, which would be paid to her husband or partner because of his high earnings.

missk_ensington

Oldernotwiser wrote: »

Is your friend a student in HE? Does she receive a student loan?

No she's doing nursing so get a bursary of £500 a month (not included in tax cred calculations) but has to work 35-37 hours a week on placement for that. I dont know her finances well enough to know why they cant cope, but I've been out with her more than once where her card has been declined and she's been unable to buy food, so paying for nursery for 5-6 weeks at £150 a week just isn't an option

Barneysmom

They earn more than us. My husband is disabled, and I can't get any at all.
We get no council tax reduction, no DLA, nilda.

Anyway why should she get any?
It's like people who demand a council house - why do they think they are entitled to one, why not stand on their own feet like the rest of us?

mouseymousey99

It may help your friend if you show her the old style board on here - it explains how to start eeeking what you have. Also Martin has a page that helps you work out your ingoings/outgoings. Sometimes very simple things can make a world of difference - packing sarnies for lunch rather than buying them etc etc over a year.Can you help your friend by going through finances etc - (credit cards)?? I know it sounds trite and I honestly don't mean it too, but people are living on a lot less (honest).

msmicawber

In my experience, being a working single mum became much harder once my children started school because of all the inset days, sports days, half days at beginning and end of term, etc. etc. In your friend's case, though, there are two parents, so the husband should also be doing his bit. Couldn't he take some time off work to look after the child either now or in September?

missk_ensington

Barneysmom wrote: »

They earn more than us. My husband is disabled, and I can't get any at all.
We get no council tax reduction, no DLA, nilda.

Anyway why should she get any?
It's like people who demand a council house - why do they think they are entitled to one, why not stand on their own feet like the rest of us?

I wouldnt say that working 55+ hours a week with a child and pregnant with another wasn't standing on their own two feet. I just expected they would get a bit more, I would have thought a £22k income would give maybe £30-35 a week in tax credits. If she was a single parent she probably be better off, yet again, no incentive to be married and bring children up as a traditional family