Benefits for young couple

inspirespirit

My son's best friend and his girlfriend have been really struggling with their finances. He does earn a decent salary so he assumed he would not be entitled to any benefits. He earns 25,000 per year. She has no income. They have a baby 8 months old. They pay 600 pounds per month rent and 130 Council Tax. The only benefit they receive is the First child benefit. I have been on the benefits calculator and it has said they could be getting up to 180 towards their rent and about a fiver off their monthly council tax bills. I think they may also be entitled to Child Tax Credit. I don't want to put their hopes up though. Does this sound about right? Also, can you claim retrospectively? They have been in this house almost a year and obviously not put in a claim for any help. Would be grateful for any advice. (His take home pay after tax and pension is 1,500 per month).

nannytone_2

have you checked their LHA rate? im assuming they are in a private let.
they could get a small amount of child tax credit, but the housing benefit sounds rather large.

mazza111

ColleenSims please read the rules of posting on the benefit board.

colleensims

mazza111 wrote: »

ColleenSims please read the rules of posting on the benefit board.

I was offering genuine advice. Its not out of the realms of reality that she can find work. My sister was in a very familar situation and she got a job, it solved alot.

Ravenshade

Wait wait wait...£25,000 and entitled to help with rent!? -_-; No wonder when benefits go up so do rental prices.

£25,000 if you'll beg my pardon as someone who survives on a helluva lot less (like, divide by three), try...cutting down on expenses. Moving to smaller/cheaper accommodation. I understand that some of these people can also claim child benefit and tax credits...which I also find astounding.

With £25k I could have a nice run around car, a much healthier bank account and ISA. I could afford a tutor for an hour a week for my child. I could afford to have my heating on all the time at the recommended 24C (WHO). Of course, I don't have Sky TV with all the packages, I don't drink, I don't smoke and I don't do hard drugs...or at least, nothing harder than a good can of relentless. >.>;


Note You cannot claim retrospectively, only from the date on the claim form. There are some circumstances where you can claim retrospectively but I can assure you that they don't fall into it.

and at 25k they don't need it either. I'm assuming with 25k that they're actual spending power is 15k per year accounting for taxes.

As for the housing benefit, they would not be entitled to that much due to the 25k income. The maximum LHA for a 2 bedroom property is all they would be entitled to if worst came to worst, but a 25k income is likely to at least halve it.

nannytone_2

you can earn 26k with one child before entitlement to ctc stops.
32k for 2 children.

i did say already that the housing benefit looks wrong

kingfisherblue

inspirespirit wrote: »

My son's best friend and his girlfriend have been really struggling with their finances. He does earn a decent salary so he assumed he would not be entitled to any benefits. He earns 25,000 per year. She has no income. They have a baby 8 months old. They pay 600 pounds per month rent and 130 Council Tax. The only benefit they receive is the First child benefit. I have been on the benefits calculator and it has said they could be getting up to 180 towards their rent and about a fiver off their monthly council tax bills. I think they may also be entitled to Child Tax Credit. I don't want to put their hopes up though. Does this sound about right? Also, can you claim retrospectively? They have been in this house almost a year and obviously not put in a claim for any help. Would be grateful for any advice. (His take home pay after tax and pension is 1,500 per month).

With a net salary of £1500 a month, less £600 rent, that still leaves more than £200 a week to pay for council tax, utilities, food, etc. I doubt if they would get much help with benefits to be honest.

May I suggest that the couple write a Statement of Affairs (sticky on the Debt Free Wannabe board). It is likely that they will find that they are overspending in one or more areas. If they can't identify anywhere, and there is less money at the end of the month than the SOA shows, they should keep a spending diary. Even if they have no debts, it would be useful for them to do, to find out why they are struggling.

LunaLady

I agree with Kingfisher about an SOA on the debt free wannabe board.

Do they have debts which they are paying off?

mazza111

At the end of the day, the OP has only asked for benefit advice.

If they think they may be entitled to it, then claim it. The benefit calculators are pretty good, especially the one on turn2us

inspirespirit

Thank you for your replies. The mother cannot work as the baby has been very sick. Only came out of hospital this week as a matter of fact, not that that would make any difference to some of you hard hearted moaners. I'm not saying they are starving, but they are finding it difficult to cope at the moment. I don't know what personal debt they have as it is none of my business. It would only be a temporary measure, whatever help they get, as when he finishes his degree his salary will go up to 35,000 and no doubt once the baby is well enough, she will find a job. So don't worry people, these are genuinely nice, hardworking people.... not spongers !!
Thank you to those of you who have given real advice. The SOA sounds a good plan.

pompeyrich

kingfisherblue wrote: »

With a net salary of £1500 a month, less £600 rent, that still leaves more than £200 a week to pay for council tax, utilities, food, etc. I doubt if they would get much help with benefits to be honest.

it would be useful for them to do, to find out why they are struggling.

If they were on JSA they would get of £114.45 as a couple and £62.09 CTCs £176 a week and no travel to work or housing costs, so effectively working for £31 a week, (£900X12/52= £207-£176) hardly surprising they are struggling, despite earning £25k a year.

I know this isn't the place to discuss policies but some people seem to think £25,000 is like being a millionaire and it's far from it.