Child benefits 101?

Sycrid

Hi guys,

I need some really simple information, or what I believe should be simple but I'm not finding any clear answers, which is the way our government probably wants things.

We're considering having a child, but we want to know the costs and implications of this. From what I can see we're entitled to some degree of assistance from the government, but we're not sure what.

Info required: Married, aged 26 and 27. Have a mortgage, salaries at present are 18k + 12.5k, both in full time work, and entitled to SMP, and SPP.

My problem is, my wife would have to leave work in order for us to have a child, so if she did this, we'd sacrifice 12.5k p.a. but what do we gain financially, because we'd love to have a child, but we fear we couldn't afford it on 18k a year only.

From what I can see we'd get £20 a week for the child, but we'd lose the money I mentioned above and have the additional cost of the child.

Can anyone assist with answering this? (I'm concerned for the period after SMP ends).

Lovetoread

You're being very sensible and thinking about the financial situation before jumping in to bed, so to speak.
Have you tried the tax credits calculator? If not, punch all your data in to this:

http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx

Type everything as though your wife has just given birth (i.e child DOB is today/yesterday and she does not earn a wage, if she choses not to return back to work).

Also, start the calculator again afterwards and put in the data as though your child will be at an Ofsted registered nursery/child minder, that way you will find out how much the Government will pay towards child care costs.

When you click on the 'next' to go to the next page, make sure you click on the arrow rather than the word next.

Hope this helps, and good luck to you and your wife.

Sycrid

Hi, thanks for the information, it is telling me that we could get about £60 a week, which doesn't seem much, but I suppose it's better than a kick in the mouth.

Still to drop 12.5k to 3k, is a significant difference. Any further help is appreciated.