Child Care is this correct

PeterJames123

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.

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📊 

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.

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💼 

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

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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!

freesha

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

• 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

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.

kimwp

What's your question?

PeterJames123

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

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. 

Exodi

PeterJames123 said:

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.

nannytone_2

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

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

Unless I'm mistaken scenario 1 would be subject to the benefit cap of £1835 

per month.