Effect of pay rise on benefits

abbiesmom

Morning,
I've just negotiated a payrise of £5000 per year. How will this affect my benefits? At the moment I claim CTC, WTC, HB and CTB, I'm a single parent paying £1200childcare a month.
TIA

Diamandis

Congratulations on the pay rise. The best way to work out what you'll now receive is my using a benefits calculator such as https://www.entitledto.co.uk

abbiesmom

Diamandis wrote: »

Congratulations on the pay rise. The best way to work out what you'll now receive is my using a benefits calculator such as https://www.entitledto.co.uk

Thanks, I did use entitled to and it showed a reduction of just over 50/month total but I couldn't see that being right as after tax and pension I'll be getting around 200 more a month.

Things are looking up now but didn't want to trust the figures and get my hopes up

TELLIT01

It's possible that the calculation is correct. With all income related benefits there is a cut off point, there is not a taper to ensure that nobody is worse off. As an example, a person with £15999 in savings would have ESA reduced by roughly £40 per week. With just one pound more in savings they would have no entitlement to ESA so would lose the entire £73.10 per week, and have the knock on effect of no entitlement to free prescriptions etc.

Afraid_of_Kittens

For every additional £1 take home pay you lose 65p housing benefit and 20p council tax support.

Afraid_of_Kittens

For every additional £1 take home pay you lose 65p housing benefit and 20p council tax support.

However additional take home pay may reduce tax credits which would increase housing benefit and council tax support.