Surely I'm doing the maths wrong?

Kaemi

Advice very greatly welcomed, I have no experience with benefits.

My husband and I are expecting our first baby next year, and I bought a book called 'babynomics' hoping it would help me work out what we need and what is completely useless.

I started reading the tax credits chapter and was struck by the figures, please tell me if I've read this wrong.

My husband earns £16,000. Hypothetical scenario if I didn't return to work. Therefore by this book we'd be entitled to:
£2785 child tax credit
£1920 basic element working tax credit
£1890 couples element
£790 30 hour a week element
£7385 Total

By my maths based on what I earn, what it costs to commute, and childcare in my area, I'd be working for around £800 more per year than I'd get staying home and getting tax credits, so surely this must be a mistake?

NotSuchASmugMarriedNow

It's not a mistake, no, it's quite common to be no better off working than you would be on benefits. Once you have a society in which there is low pay with a high cost of living it's inevitable really.

Kaemi

Thanks for your reply, I think it's just incredible to be honest! And all these benefits still exist, even though the Tories scrapped some? Can you have savings as well as getting tax credits or is there a cut off?

My brother has a friend whose parents just sold their house for 1.7m, but they're both retired so under some income threashold so this lad gets a grant where my brother doesn't. I'm wondering if this is another equally mad loophole.

Icequeen99

Kaemi wrote: »

Advice very greatly welcomed, I have no experience with benefits.

My husband and I are expecting our first baby next year, and I bought a book called 'babynomics' hoping it would help me work out what we need and what is completely useless.

I started reading the tax credits chapter and was struck by the figures, please tell me if I've read this wrong.

My husband earns £16,000. Hypothetical scenario if I didn't return to work. Therefore by this book we'd be entitled to:
£2785 child tax credit
£1920 basic element working tax credit
£1890 couples element
£790 30 hour a week element
£7385 Total

By my maths based on what I earn, what it costs to commute, and childcare in my area, I'd be working for around £800 more per year than I'd get staying home and getting tax credits, so surely this must be a mistake?

The figures you have quoted are the maximum figures. If your husband earns £16,000 and you didn't work, that maximum would be reduced by 41p for each £ of income he has over £6420 so you would only get around £3385 (i.e. £4000 less than you quoted).

IQ

Kaemi

Ah thank you, I knew they must be too high to be true.

NotSuchASmugMarriedNow

don't forget, your childcare costs are only for the first 5 years of the childs life, so in the long-term, it's better to work and keep your career going as your salary will gradully increase over the years and your childcare bill gradually decrease, if that makes sense.

paddedjohn

what would a young couple with 6 kids, 1 under 5, and a rent of £750/month be entitled to? the husband earns approx £15k/year.

NotSuchASmugMarriedNow

paddedjohn wrote: »

what would a young couple with 6 kids, 1 under 5, and a rent of £750/month be entitled to? the husband earns approx £15k/year.

A vasectomy, I hope

paddedjohn

NotSuchASmugMarriedNow wrote: »

A vasectomy, I hope

theyre trying for another.:cool:

pompeyrich

paddedjohn wrote: »

what would a young couple with 6 kids, 1 under 5, and a rent of £750/month be entitled to? the husband earns approx £15k/year.

Total income will be in excess of £30K. Put the numbers in HERE.

paddedjohn

pompeyrich wrote: »

Total income will be in excess of £30K. Put the numbers in HERE.

would that include the housing costs?