UK Benefits Question after having Baby

[SeanyD]

Advice needed please.

Myself and the missus have always been in full time employment since leaving school around 20 years ago, never ever claiming benefits of any kind. She's due back to work after 9 months maternity leave. Looking at childcare costs against her wage, its proving not worth her while, childcare fees plus her petrol to work and back are basically equal to her wage, therefore we're debating if its worth her while.

Question, if she packed in, what benefits would we be entitled to? Because we've never claimed before, I do feel naive on the subject.

Any help appreciated - serious responses only please.

Thanks in advance.

[SGirl]

Sorry, can't help on the benefits front, I'm afraid - never claimed them.

But I was wondering - what kind of childcare are you looking at? Childcare costs vary quite widely so maybe you could look at different kinds of childcare and cut costs that way?

[SeanyD]

We've explored all options for childcare, nurseries, friends, family etc etc, and the cheapest workable solution is a private childminder, which equates to her full wage.

[Eric Mc]

She is entitled to the basic Child Allowance - which is automatic and not means tested - so she can remain working and still receive it.

She is entitled to the Child Tax Credit - which IS means tested in that it reduces as household income increases. It stops completely if the household income exceeds £58,000.

Although it will be abolished (as per yesterday's news), your child is still eligible for the old Labour freebie of the £250 Cild Trust Fund.

Does her employer operate any sort of Childcare Voucher Scheme? These schemes are non-taxable benefits i.e. if the employer pays partly or wholly for child care provisions for a child, they are ignored for tax purposes in the hands of the recipients.

I would check out these pretty promptly as I have a funny feeling that by April next year, many of these advantages given to parents may very well be severely reduced, restricted or abolished entirely.

[edc]

Have you considered childcare vouchers (if available)? Or even asking for flexible working which may include some home-working or working all your hours over 3 days instead of 5 so halving your petrol cost for example?

[SillyALFALove]

To be honest, under the current cost cutting it may well all change anyhow, so what you are entitled to now may be different by the time you are in a posistion to claim.

[SeanyD]

My workplace does offer childcare vouchers, although as I openly declare, I've not looked into them.

Her workplace offers nothing that we know of, and would not be open to suggestions of home working etc, so its full time office based 5 days a week, take it or leave it. At the moment its not looking viable.

[Eric Mc]

SeanyD said:

My workplace does offer childcare vouchers, although as I openly declare, I've not looked into them.

Her workplace offers nothing that we know of, and would not be open to suggestions of home working etc, so its full time office based 5 days a week, take it or leave it. At the moment its not looking viable.

If YOU apply for the vouchers, you might end up benefitting so keping her working might be viable.

Are either of you higher rate tax payers?

[SGirl]

SeanyD said:

We've explored all options for childcare, nurseries, friends, family etc etc, and the cheapest workable solution is a private childminder, which equates to her full wage.

A private childminder is probably one of the more expensive options. Do you not have a nursery somewhere nearby? Or near to one of your workplaces? Alternatively, how big is your house? Have you considered an au pair?

Do you know of any other couples with children of about the same age? Maybe you could help each other out with childminding so that your wife can go back to work part-time?

ETA: IIRC nursery places get cheaper as your child gets older because the child-to-staff ratio drops.

Edited by SGirl on Tuesday 25th May 10:58

[worsy]

You also need to weigh up if the fact she continues to work, receive pay rises (lol), pay into pension etc is worth the sacrifice of working for free also. When she eventually want to go back to work will she lose status of role and have to start at the bottom.

[Pickled Piper]

worsy said:

You also need to weigh up if the fact she continues to work, receive pay rises (lol), pay into pension etc is worth the sacrifice of working for free also. When she eventually want to go back to work will she lose status of role and have to start at the bottom.

Yes there is a longer term picture which you should assess. Also, once she drops out of work completely she will find it that much harder to get back in.

Plus you may be having another sprog in the next couple of years. Lots of factors to consider. How does she feel about being a full time Mum? some women thrive on it some don't.

pp

[SeanyD]

Thanks for the advice so far, much appreciated.

We looked at nurseries and costs were far greater than a private childminder. Regarding career ladders etc, my job is fortunately by far the greater income, her job pays around 20% of our household income, so we're not too fussed about the starting at the bottom issue, if and when she were to go back to work.

[Alex]

Call me old fashioned, but I think a child should be raised by one of their own parents until at least school age.

[tankplanker]

My wife stopped work completely after the twins were born as no matter how we cut it we'd have been worse off financially if she went back to work. Lower paid 9-5 type jobs only work with free or close to free child care provided by relatives or crèches, when you end up stumping up £140+ a week for childminder plus other costs of working (car/commuting costs, work clothes, extra food) you can soon find you're losing upwards of £700 a month just to get to work. Even on a take home of £1500 its a massive chunk of your wages and soul destroying.

My wife used the time to retrain and change careers so she is now earning nearly double what she was before we had the twins.

[andyroo]

This may seem harsh, but isn't this the kind of thing you work out BEFORE having a child?

And as for flexible working, your wife is entitled by law to ask her employers to consider it, and they'd better have a damn good reason why not if they say no.

Edited by andyroo on Tuesday 25th May 12:16

[Tahiti]

andyroo said:

And as for flexible working, your wife is entitled by law to ask her employers to consider it, and they'd better have a damn good reason why not if they say no.

From what I understand, they need to consider the request, but can refuse on numerous grounds.

[SeanyD]

tankplanker said:

My wife stopped work completely after the twins were born as no matter how we cut it we'd have been worse off financially if she went back to work. Lower paid 9-5 type jobs only work with free or close to free child care provided by relatives or crèches, when you end up stumping up £140+ a week for childminder plus other costs of working (car/commuting costs, work clothes, extra food) you can soon find you're losing upwards of £700 a month just to get to work. Even on a take home of £1500 its a massive chunk of your wages and soul destroying.

My wife used the time to retrain and change careers so she is now earning nearly double what she was before we had the twins.

Best response so far, exactly where we are. Thanks.

[andyroo]

Check this out:
Benefits and help for parents going back to work

[Amateurish]

SeanyD said:

Any help appreciated - serious responses only please.

Thanks in advance.

It depends entirely on your income.

My OH gave up work to look after our daughter and we receive child benefit only. That is the only non-means tested benefit.

There is a plethora of benefits open to you, depending on your wage. I suggest checking

http://www.turn2us.org.uk/benefits_search.aspx

plug in your details and see what you'll get.

[Pothole]

andyroo said:

This may seem harsh, but isn't this the kind of thing you work out BEFORE having a child?

Edited by andyroo on Tuesday 25th May 12:16

Glad I'm n ot the only person who thought this.