Entitled to? Is it correct(ish)?

tincat

Hi all,

If a single mum, 2 kids under 10, rent £1000pa starts work at a salary of £20000 pa (£1666p/m), is it really possible that the benefits she would get would be an additional £17,000?

Council tax is £120pm after the discount. Childcare approx £200 p/w

This is the result I get - do you think I entered something wrong?

Entitlement

per yearper weeknotes

Means-tested income entitlements
Tax Credits-Initial Tax Credit
£3,000.59 p/a
£57.55 p/w
Weekly amount shows the estimated award for period 06/04/2008 to 30/04/2008. The annual amount shows the estimated award for the full tax year.

Tax Credits
£3,000.59 p/a
£57.55 p/w
Weekly amount shows the estimated award for period 06/04/2008 to 30/04/2008. The annual amount shows the estimated award for the full tax year.

Means-tested bill reductions
Council Tax Benefit
£1,460.00 p/a
£28.00 p/w
You will not have to pay Council Tax as you qualify for full Council Tax Benefit. Our calculation is based on you receiving £57.55 from tax credits.

Housing Benefit
£12,618.57 p/a
£242.00 p/w
We have calculated your entitlement using the Local Housing Allowance rate you entered. LHA rates change every month so please return to the calculator regularly to check your entitlementOur calculation is based on you receiving £57.55 from tax credits.

Total Entitlements
£17,079.16 p/a
£327.55 weekly p/w

dmg24

Is the rent £1000 per month, or £1000 per annum (year)? Is that amount of rent payable under LHA (will depend on area)?

tincat

Yes, the rent is £1000 per month, and my local area will pay £242 for 2 bedrooms per week (our entitlement apparently as both kids same sex).

tincat

It is really weird though, as the housing benefit is even more than what I pay in rent????

Auzelia

that sounds like a lot of money for someone on £20k per year?

mitchaa

I dont think the £20k has been taken into account?

Entitled to gives some wild figures.

tincat

I had to enter the gross salary I would earn twice - once on the 3rd or 4th page and then near the end, so it definitely was taken into account.

I didn't have to enter my rent amount, only the amount I was entitled to, so I assume that they will base the amount they give on my actual rent, not the allowance.

My last job was lower paid than this new one, (£16,000pa) and I had to pay council tax although it was a reduced amount (about £24 per month instead of £120).

dmg24

tincat wrote: »

I had to enter the gross salary I would earn twice - once on the 3rd or 4th page and then near the end, so it definitely was taken into account.

I didn't have to enter my rent amount, only the amount I was entitled to, so I assume that they will base the amount they give on my actual rent, not the allowance.

My last job was lower paid than this new one, (£16,000pa) and I had to pay council tax although it was a reduced amount (about £24 per month instead of £120).

Though I do think you are entitled to something, £17K does seem incredibly high. Have you looked at the LHA calculator on the website of your local council, and the tax credits calculator at https://www.hmrc.gov.uk?