Benefits advice please- having a baby?

meow951

Me and oh would like to try for a baby but need to work out finances and whatnot before hand. I've been on sites like entitledto and they're really helpful. However, im still a bit confused!!

Working tax credits is done on last years earnings? Why is this and what if you stop working once the baby comes are you are then eligible? Do you ring them and then they will award it to you?

Also if you take maternity leave and then decide to not go back is there any rules on this?

Also my mum says that you can't claim tax credits and housing benefit. I thought that we would be able to get part of our rent paid or is that local housing allowance?

Im so confused and dont know what we would be entitled to etc.

I currently earn around £6000 and oh £15000 both before tax. Im 20 and oh is 22. If i were to leave work i would obv be earning £0.

Any help greatly appreciated

karenx

If you take maternity leave and decide not to return to work you will not be penalised unless your employer pays you more than the statutory pay which is £123 per week. Anything above that you will have to pay back to them or return to work for a certain length of time.
You should be entitled to working tax credits with just your OH working, but you wont get help towards childcare.
You could be entitled to housing benefit also but that depends on your savings, and your local housing allowance amount.

meow951

I worked out id get about £100 in maternity pay i wont get overpaid then?
We have about £3000 savings and i think lha is £135 a week but not sure on how that works either haha.

karenx

The LHA amount is the max they will pay you per week if both of you wernt working etc. But as one or more of you are then your income is taken into account and it will be a reduced amount. Tax credits is taken as income also, but child benefit isnt. The shortfall you will have to pay yourself

meow951

Ah right i see. So if our income is lower than the previous year and we ring and tell them we should get wtc as we will qualify. Or do they always go off the previous year no matter what, even if you're not working?

Sorry if im being thick, just want to be 100%

karenx

It usually goes on the previous years income as its exact and not an estimate. If you base it on the current years income you could end up with them paying you more than they should and therefor you would have to pay it back. As you have to estimate what you are going to earn, so if you end up earning more (ie get a higher paid job or get overtime) they are actually paying you more than you should be getting based on the info you have told them you are earning.

Rolandtheroadie

You will never come to the conclusion that you can afford a child, so take it as it comes.
Just relax and start trying. The rest will fall into place.
Good luck!