Income and expenditure

Sharp_claws

I have been referred to Money Wellness by Step change to look at DRO or bankruptcy. I am in a deficit on the income and expenditure but when going through the expenditure it is coming out I am in a surplus with Money Wellness. They said it is because of my childcare costs. My average childcare cost is £400. Some months when I need to pay out of school club it can be £510, the £400 is to take into consideration the fluctuations.

However Money Wellness say my child care is £116 because I get 85% back through my UC. I have tried to explain that 85% back is what is included in my UC payment which averages £1,542. My net salary is £1,345 and monthly child benefit is £258. Total £3,145

When I get paid I pay out £400-500 childcare. I don't pay £116. Does this sound like they have got it wrong or am I being thick?

So when I pay £400 childcare my outgoings total £3,248 so a deficit of £103. They are saying it is £116 which would give a surplus of £181. They said if I put down the £400 I'd be paying for childcare twice! I just don't understand it. They said to forget what Step Change said as they work out things differently. 

Can anyone shed any light on this for me?

fatbelly

This only really matters if you are going for a DRO. Are you?

If £116 per month results in a surplus of £181 then the true figure of £400 produces a deficit around minus £100

That should qualify you but would raise different alarm bells in that your expenditure would not be affordable after a DRO and you still need to live on credit.

It's probably best to start a thread on debt-free wannabe and post a statement of affairs. Your query doesn't seem to be about reclaiming charges.

Sharp_claws

Ah think I've posted in the wrong place! DFW was where I wanted to post. It's been a long day

Thank you!