Hubbys hours cut in half, called tax credits, now we receive less??

Mumolulu

This is just absurd.
Hubby and I are in a real pickle at the mo, I posted a thread about us having £100 a month for food, which was the rest of the money we receive from tax credits, and when I called tax credits to tell them our situation, they politely informed us that we would be receiving £135 less per month, which was in fact £100 for food, and £35 into the rest of our outgoings for bills. So now this is taken from us, after all our outgoings, mortgage, bills etc, we are £35 in the minus, and therefore have no money whatsoever for food!

Surely this isn't right? Is this part of the governments idea to get parents back into work so they pay them tax? :mad:

My husband earns £7 an hour, he is now on a 3 day week, I earn £200 approx per month, and we now get £80 approx per week from tc. My hubby is applying for jobs, I am having to look in the field that I am trained as I have bigger earning potential than him at the moment, (my current job is just a weekend job as I have been a sahm), and things are just really quite tough for us.

We have no debt, and can't afford to eat!! We have borrowed some money off his mum to buy food shopping this month in the hope that in a month things may be better, we also have printed some business cards for my husbands trade and will distribute these where we can.

Is there any other benefit we are entitled to? Just seems a bit silly. Our mortgage is £300 approx per month, we have no luxuries etc, apart from our free internet! I have stuff I can sell to make up some more money, but this isn't what it should be like is it?

Any help appreciated.

whitewing

Try www.entitledto.com and see what that says...

cw18

I think the problem is due to his reduced hours...... Tax Credits are based on hours worked, so you were (presumably) jointly working a 30+ hour week until you called, and now only on a 16+ hour week.

Has his contract of employment actually changed to state the lower number of hours? I'm on a 35 hour/week contract, but due to shortage of work (and impending redundancy due to this) I'm currently being paid to stay at home...... and Tax Credits are fine with me declaring 35 hours as that's what's in my contract (mind, this is also what I'm being paid for - so that may also make a difference)

[Deleted User]

Have you given TCO an estimate of your husbands 08/09 income?

If not the award is still based on the 07/08 income and this will be why your award has gone down.

If you reduce your hours below 30 p/w (and still work 16+), you lose the 30 hour element of Tax Credits which is around £14 p/w.

If you have received additional one off payments this reduces your weekly/monthly amount as your award is based over the full year and anything extra paid now gets reduced from your future payments.

£135 seems like quite a drop in your payments though - when the amended award comes through have a look at the total amounts awarded on the new award (not just the monthly amount) and also look at the details on the old award to check how much the difference is.

If your husband is now working less than 16 hrs p/w and you use childcare, TCO will not give any help towards it because you both need to work 16+ hrs.