Would I be better off reducing my working hours and claiming benefits??

MrEmirates

Hi everyone,

This is my first post and i'm after some advice about tax credits and whether i'd be better off reducing my working hours.

I'll try and provide as much information as possible. Here goes:

I'm a twenty-six year old married father of three. My children are seven, four and six months old. We live in a small two bedroom council property. The lack of space and cramped conditions are proving stressful however, the council are currently not obliged to move us to a larger property.

Both my wife and I are in low paid work. I have worked for the same company for the last three years and until last month I earned £7.37 per hour. I worked no less than 38 hours a week but usually worked 50-70 hours a week in order to up our income. I didn't enjoy my job and it had a negative effect on my marriage and family life.

Last month my job role was changed. I now earn £6.67 an hour. I'm on a 38 hour contract with the option of as much overtime as I want. Although the number of hours I work and my hourly wage is less i'm much happier. I see more of my kids and get to spend more time with my wife.

My wife has been on maternity leave since July 2009 and receives £94.12 per week in SMP. She is due to return to work at the end of April. She works 20 hours per week.

Recently a colleague told me about Local Housing Allowance and Working Family Tax Credits. He works thirty five hours a week yet he receives over £400 a month towards the rent of a three bedroom privately rented house on a nice estate and over £400 a month in Working Family Tax Credits. He also receives money towards his Council Tax and Child Tax Credit.

We currently receive no Housing Benefit, Council Tax Benefit of Working Family Tax Credit.

Other than mine and my wife's wages we receive Child Tax Credit and Child Benefit.

I guess what i'm trying to ask is would my family be better off going the route my colleague has gone? Should I just 35-38 hours a week, cut out the over time out, and claim benefits like him?

It would solve my housing situation and allow me to spend more time with my family. Or am I seeing it all wrong?

I really appreciate any input. I've had a look at the online calculators but i'm now even more confused.

Thanks in advance.

flea72

based on your wages alone you are roughly on £15k a year at the mo? which should give you about £8k a year in CTC/WTC

if you go back to your old hours, you were earning about £19k (for a 50hr week), and would still get £6k CTC/WTC

however, your OHs income would have an affect on the above figures

i dont know how housing benefit/council tax benefit works, so cant help you there

F

DX2

You know the saying if it seems too good to be true.....

MrEmirates

DX2 wrote: »

You know the saying if it seems too good to be true.....

I know what you're saying but I have no reason to doubt him.

DX2

MrEmirates wrote: »

I know what you're saying but I have no reason to doubt him.

;)of course not

Caz3121

LHA does not apply to council/HA properties, I assume your rent is also much cheaper than his so you may or may not get any help.
Have a look at http://www.entitledto.co.uk and maybe play about with some different figures (there is no differentiation with the hours you work over 30 it is the income so you may find someone working less hours on a higher wage may not qualify and someone more hours on a lower wage would)

bigheadxx

www.entitledto.co.uk

Put in your figures and you will get your answer.

MrEmirates

flea72 wrote: »

based on your wages alone you are roughly on £15k a year at the mo? which should give you about £8k a year in CTC/WTC

if you go back to your old hours, you were earning about £19k (for a 50hr week), and would still get £6k CTC/WTC

however, your OHs income would have an affect on the above figures

i dont know how housing benefit/council tax benefit works, so cant help you there

F

I make it £13,172.92 working my basic 38 hours with no overtime. This is what i'd like to work but only if I would then qualify for LHA and WTC.

DX2

MrEmirates wrote: »

I make it £13,172.92 working my basic 38 hours with no overtime. This is what i'd like to work but only if I would then qualify for LHA and WTC.

So your wife will not be working?

MrEmirates

DX2 wrote: »

So your wife will not be working?

It depends on how it effects any claim for benefits. She would rather be at home with the kids but knows she has to work if necessary.

Caz3121

MrEmirates wrote: »

This is what i'd like to work but only if I would then qualify for LHA and WTC.

have you tried entitledto yet? as said you do not get LHA for council rented, it would be housing benefit so you will need to put you rent details etc into the tool and should give you an indication if you would qualify