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Pay rise causes loss in benefits

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  • bigbill wrote: »
    Do not forget the 41p Tax Credits as well the following year as well?

    For every £1 decrease in tax credits Housing Benefit will increase by 65p and Council Tax Support by 20p.
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  • tboo
    tboo Posts: 1,379 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    SamanthaP wrote: »
    Hi, my husband was offered a pay rise, which he happily accepted. We claim housing benefit, child tax credit and council tax benefit. I knew our benefit would change but I stupidly thought we would be slightly better off every month. Now the results are in and because my husband earns £280 more per month we lose £250 housing benefit, £200 child tax credit and our council tax increases by £66 per month. So in total we are now worse off by £225 per month. How can this be right?? I don't know how to cope with that much less coming in every month. Any suggestions please?


    Ring on Monday and ask, or look at your notification letters received

    The assessor may have incorrectly added the increased wages as weekly rather than monthly
    but bare in mind though the wage ncrease may disqualify you for council tax reduction anyway as the taper isn't as generous as HB

    Can't comment on why your child tax credits have decreased that much
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  • sheramber
    sheramber Posts: 24,707 Forumite
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    Do you perhaps have a child who turned 16 before 31 August?
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