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Child Care is this correct

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PeterJames123
PeterJames123 Posts: 115 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 15 July at 9:16AM in Benefits & tax credits

Is this why so many people are claiming Universal Credit?


Hi everyone, I came across these figures and just wanted to check if they sound accurate — and if so, is this why UC is becoming more common?


This is based on a single mum with 2 kids renting a nice 3-bed house in Manchester.


📊 

Scenario 1: No job


Universal Credit Breakdown:

  • Standard allowance (single, over 25): £400.14

  • Child element – 1st child: £339.00

  • Child element – 2nd child: £292.81

  • Housing (max LHA cap for 3-bed): £950.00


Total UC: £1,981.95/month

  • £350/month from the dad (basic job, voluntary/private arrangement)

    £2,330/month household income


➡️ After bills (approx. £900): £1,430 left over for spending or saving.


💼 

Scenario 2: Working part-time earning £25k/year

  • Net salary: £1,790/month

  • UC (after deductions): £1,219.65/month

  • Child maintenance: £350/month


Total income = ~£3,360/month

➡️ After bills (~£900): £2,460 disposable


Does this sound right to people who’ve been through the system?


I’m genuinely trying to understand how the benefits work and whether this is why many people rely on UC, especially in situations where one parent is caring full time or working reduced hours. Would love to hear thoughts.


Thanks!

Comments

  • freesha
    freesha Posts: 430 Forumite
    Part of the Furniture 100 Posts Name Dropper
    edited 14 July at 1:26PM
    Does it make a difference if the house she is renting is nice or not? Just ask what you really mean, rather than beating about the bush.
  • PeterJames123
    PeterJames123 Posts: 115 Forumite
    Part of the Furniture 10 Posts Combo Breaker

    • Rent is £1,200/month

    • UC housing element (after earnings are considered) contributes £700–£800/month

    • The rest (£400–£500) comes from your salary


    So yes, they still get help, but not the full amount.

  • Exodi
    Exodi Posts: 3,921 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 14 July at 1:42PM
    I presume 'bills' doesn't include rent?

    That still needs paying for? You've added it to income in the first scenario but then not listed the rent as an expense and suggested that £1430 is left over for spending or saving?

    Same with the second scenario.

    I think you need re-do the rent numbers entirely tbh as the housing element rarely covers the full cost.
    Know what you don't
  • kimwp
    kimwp Posts: 2,929 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    What's your question?
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • PeterJames123
    PeterJames123 Posts: 115 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    edited 14 July at 1:37PM

    Thanks for pointing that out — you’re right, I should have clarified the rent handling better and included Child Benefit too.


    I’ve since reworked the numbers based on a single mum with 2 kids (one 8 and one 15), renting a £1,200/month 3-bed in Manchester, with Child Maintenance of £350/month from the dad.

    🔹 Scenario 1: Not working (on full UC)

    Income:

    • UC (standard + child elements + full rent support): £1,981.95

    • Child Benefit: £110.97

    • Child Maintenance: £350.00

    • Total income: £2,442.92/month


    Expenses:

    • Rent: £1,200

    • Bills (food, energy, council tax, etc.): ~£900

    • Total expenses: ~£2,100


    ➡️ Leftover/disposable: ~£343/month


    Scenario 2: Working part-time earning £25k/year

    Income:

    • Net salary: ~£1,790

    • UC (reduced due to earnings): ~£1,219.65

    • Child Benefit: £110.97

    • Child Maintenance: £350

    • Total income: ~£3,471/month


    Expenses:

    • Rent: £1,200

    • Bills: ~£900

    • Total expenses: ~£2,100


    ➡️ Leftover/disposable: ~£1,371/month


    So yes — you were right to flag that the housing element doesn’t always fully cover rent, and once working, the rent top-up has to come from salary.


    Still, even with rent and bills, there can be a decent amount left over — especially in the working example. That’s why I asked the question — is this part of why UC is so widely used?


    Would love to know what others think.

  • MSE_ForumTeam5
    MSE_ForumTeam5 Posts: 1,276 Community Admin
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Hi - the Benefits board on the forum exists to help people with their entitlement rather than for general discussion of benefits policy.

    Do you have a particular question for yourself / a family member etc?  If not, we will bring this thread to a close. 
    Official MSE Forum Team member. Please use the 'report' button to alert us to problem posts, or email forumteam@moneysavingexpert.com
  • Exodi
    Exodi Posts: 3,921 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 14 July at 2:29PM

    Still, even with rent and bills, there can be a decent amount left over — especially in the working example. That’s why I asked the question — is this part of why UC is so widely used?

    Would love to know what others think.

    I think the question is just confusing for me because your examples suggest the second person is significantly better off (~£1k p/m) but conclude the opposite, that it highlights why people might want to take up UC?

    In reality, £25k for a part time job is a great gig if you can get it - it's basically the annual pay of someone working full time on minimum wage. Of course there is the missing detail, part time being 30 hours is dramatically different to part time being 15 hours in this scenario.

    On the numbers above, my conclusion would be that it highlights that work pays - which many say is not the reality.
    Know what you don't
  • nannytone_2
    nannytone_2 Posts: 12,993 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Hyou didn't factor in any childcare costs for the 3 year old.  Nor any transport vosts or clothing.  School u inform for the 15 yo.  Expenses list can go on and on
  • Spoonie_Turtle
    Spoonie_Turtle Posts: 10,307 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 14 July at 3:29PM
    Do also remember that entitlement to the 3-bed LHA will depend on the children being old enough and of different sexes to qualify for their own bedroom.

    I'd love to know how you worked out £900 for bills and whether you've included transport, clothes and school costs (extra supplies, extra-curricular activity costs, new uniforms when needed) for the children, childcare during the school holidays, etc.

    But as rightly pointed out, this board is for helping real people understand their entitlement, not to waste people's valuable time and energy discussing hypotheticals.
  • kaMelo
    kaMelo Posts: 2,856 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    edited 14 July at 4:52PM
    Unless I'm mistaken scenario 1 would be subject to the benefit cap of £1835 
    per month.
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