Childcare payments affecting housing benefit?

MissDVL

Hi

I've recently started a new job which has a salary increase of £2.5k on my old job. Before this I was receiving about £250 a month in child and working tax credits, and about £280 a month in Housing Benefit.

I have now had to start paying for my son to go to nursery, which is costing me £331.50 a month. I put in a claim to HMRC for the childcare element, which I have been awarded, which makes my tax credits for the month £580. However, when I updated my council about the changes, my HB was stopped. They don't seem to have taken into account the fact that £331.50 of my new TC amount goes on childcare!

The long and short of it is that I am now down about £260 a month, which is obviously a massive amount considering I have a house and a car to run and a child to buy food and clothes for! I don't know what to do

The thing that takes the p*ss is that I work hard to provide a good life for my little boy rather than sitting at home living off benefits, but I would be better off if I was doing exactly that! If anyone has any suggestions on what I could do to try and help this situation would be very grateful!

cutestkids

Hi OP

Is it not more likely that the increase in salary of £2500 has affected the housing benefit claim rather than the childcare payments.

You would be best to phone the housing benefit office to get them to clarify why you are not eligible

princessdon

I was of the understanding the childcare element of TC was discounted for Hb purposes?

MissDVL

cutestkids wrote: »

Hi OP

Is it not more likely that the increase in salary of £2500 has affected the housing benefit claim rather than the childcare payments.

You would be best to phone the housing benefit office to get them to clarify why you are not eligible

I think I will have to do so on Monday, I haven't yet told them about my new salary because I literally started on Monday just gone, whereas I put my son into nursery 3 weeks ago so updated them about that first.

The thing is even with my salary increase (which is before tax and NI, so effectively I'm only taking home an extra £100ish a month), I'm still down a significant amount, and everything is budgeted down to the last pound!

MissDVL

princessdon wrote: »

I was of the understanding the childcare element of TC was discounted for Hb purposes?

That's what I thought. I even had a discussion on the phone with the HB people because they rang to tell me I no longer qualified with my new TC award, but when I told them £330 of that was childcare they asked to see a statement, which I sent them, and heard nothing back until today when I received the letter saying I was no longer entitled!

princessdon

http://www.dwp.gov.uk/local-authority-staff/housing-benefit/claims-processing/claims-guidance/calculating-hbctb/


That seems to agree with me - they are disregarded. I think you need to speak to them (apologies if this is "old" advice and there has been newer policies) but I can not find a newer version.

MissDVL

princessdon wrote: »

http://www.dwp.gov.uk/local-authority-staff/housing-benefit/claims-processing/claims-guidance/calculating-hbctb/


That seems to agree with me - they are disregarded. I think you need to speak to them (apologies if this is "old" advice and there has been newer policies) but I can not find a newer version.

Thank you for this! Will speak to them first thing on Monday and quote this!