Worse off working full time?

[MrsSnape]

I'm a single parent to two children. I get maintanance payments from their dad and I do not own a home.

Now, people keep telling me that I would be actually worse off financially working FULL TIME than I would working part time...apparantly I'd get so much help working part time that I'd be better off than if I had a full time wage.

Is this really true? I need to rent privately and seemingly can only do this if I'm working full time so I don't mind if I end up with the same disposable income working full time but don't want to be actually WORSE off working more hours....

[littlelamb]

I have heard this too, and would like to think it's not true. I am a single parent to dd and am expecting in 9 weeks. I rent privately at huge cost and before maternity leave, I worked full time. I have just recieved a letter from the council saying that because of my tax credits I am no longer entitled to housing benefit . Why they have decided this now is beyond me, as it has been the same amount since I graduated nearly two years ago, and most of it gets spent on my very expensive childcare! I don't know what to do now to be honest. If I really am better off working less then that is what I will have to do.

[alfiesbabe]

Well it would be a ridiculous world we live in if it's true! Wouldnt most people work part time if they actually ended up with more money than if they worked full time?

[Nemoandthefishes]

it is ridiculous but sadly from what I have seen with friends it is true
ok take home wage you may earn about £60 a month more but then factor in travel costs etc it tends to be quite an even keel unless you are on some magnificent wage.

[Anna8888]

Lots of things are possible in a welfare state.

Tax and benefits distort the financial rewards of working.

You can only work out what situation is right for you by doing you own sums based on your own situation.

[Judy1234]

It depends what you would earn. If it's over £100k then no way are you better off working full time. You don't even get tax credits at that level. So I would get really well paid work if you can or set up a business to earn it and then the issue goes away.

But more seriously yes it's worth checking it out.

I'm a single parent of 5 who gets no payments from the father (and indeed I in effect support him) and I am much much better off working full time.

[mommycat]

Well, I guess each individual would have to to do their own maths, but I can say that working part time, the tax credits barely bumped up our income. We have a mortgage; it might be different if you are renting and getting housing benefit. Then you factor in childcare costs. But for me anyway, I am sure I would better off financially working full time.

However, if you are renting you would probably be better off not working at all than working part time. With part time work you only get so much assistance. And you are not eligible for various discounts given to unemployed people. Low income doesn't count as 'concessions.' On the other hand, work is good for your self-esteem. So, if I were you I'd weigh out all the options and wages. It's a complicated life isn't it..

God luck

[alfiesbabe]

Totally agree with that point mommycat, that work is about a lot more than just a wage packet - it helps shape your life, is good for motivation, self esteem etc. Other things, family etc are hugely important too, but i think being out of work in the long term for most people is hugely dispiriting. It does seem weird that some people might genuinely be better off not working, or working part time, than working full time. Of course you should be paid more if you are working more!! A welfare state is there to provide a safety net, not give people an easier life if they do less!!