Tax credits - any help anyone ! ?

seaniboy

Have a mate who gets DLA middle rate care who's single and has a 16 year old in F/T training living at home with them for the last few months from the other parents due to unable to have a stable parent-child relationship

My mate has always been the parent giving thier time up for the child even though the other parent sat on !!!! claiming IS, so now they can now instead of devoting the little energy thay have with illness on work rather than being a live away hands-on parent as they have now pulled back & told thier young adult "you live here but now you have all these responsabilities as at 16 thats what the law says and you make your own choices and that includes doing your own cooking/laundry etc till you leave here in the future...thier kid took it well as they know about the disability and the two get on great - just a pity the hopeless parent didnt send them away to my mate sooner.

Anyways I played about with the entitledto website as I'm helping them sort all this mess out as they have been single and on disability benefits for a few years (dont know which one/s ?) and this cant be right what it says can it ? With regards to working 16 hours on minimum wage...how can a weekly income of almost £300 only pay so little rent & council tax - under £5? (This excludes the DLA as income)


Entitlementper yearper weeknotesMeans-tested income entitlementsTax Credits-Initial Tax Credit£9,238.15£177.17Weekly amount shows the estimated award for period 05/07/2010 to 05/04/2011. The annual amount shows the estimated award for the full tax year. Tax Credits£9,238.15£177.17Working tax credit and child tax credit. Means-tested bill reductionsCouncil Tax Benefit£1,172.69£22.49You still have to pay the water and sewerage charges. Your full Council Tax bill of £23.01 per week will be reduced to £0.52 per week because of your entitlement to Council Tax Benefit. Our calculation is based on you receiving £122.50 from working tax credit and an Income of £54.67 from child tax credit. Housing Benefit£3,718.30£71.31Your full rent of £73.00 per week will be reduced by £71.31 per week because of your entitlement to Housing Benefit. This means you will have to pay £1.69 each week. Our calculation is based on you receiving £122.50 from working tax credit and an Income of £54.67 from child tax credit. Other income entitlementsChild Benefit£1,058.50£20.30 Total Entitlements£15,187.64£291.27 weekly


I'm lost - does the above include/exclude the 16 hours @ minimum wage also ?

esmerellda

Sounds right for an income of £15600 pa with a child.

Who works 16 hrs for minimum wage ? (sorry I don't think it is clear from your post or I'm having a dense morning)

Does your mate receive Child Benefit for the 16 yr old ?

seaniboy

Thanks:)

In between having CB transferred from the ex by the DWP.

They are going to work 16 hours minimum wage as its more to do with not being isolated than anything, in all honesty he could be a pig like many and do nothing and get disability payments through IB or ESA but thats not whats wanted - living apart the priority was the child - whom now lives with them so now the priority is college for child & work for them as they no longer need to dedicate 20 hours a week approx to child/situation.

I today asked & they get ESA with SDA at approx £119 with full HB & CT.

But if they work and get Tax Credits how does that pan out financially for them ? I know they struggled the last few months but will they be better off or worse off with my mate working in thier situation ? Is the physical stress of it with thier disability worth it for a few quid (versus health) or will it be a good financial improvement for them that will also help provide better access to other health benefits for my mate he cant afford on ESA - organic/specialist foods are essential due to thier disability, massage/manipulative therapy etc as I know from thier past this helps them with the disability.