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The path back to work

Not sure if anyone has experience on the benefits system.

A friend currently works 10 hours a week and as well as other benefits gets her mortgage interest paid.

She has an offer to increase to 20 hours a week, but at £7 / hour this will not net her as much as increasing to only 15 hours a week as once past 16 hours she stops getting her mortgage interest paid for her.

She hopes this is a path to fulltime employment so is keen to take it but worried that she will be worse off in the meantime.

Any thoughts welcome

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08th May 2010 19:34

Stupid system

This is where the benefits system is so stupid - it discourages people from trying to get back into work.

You really need to look at the benefit rules for whatever payments she is receiving and do your sums.  You might find that at 15 hours she is OK and at 16 hours she isnt.  Work it out and arrange the hours accordingly.

 

I think there's a benefit entitlement calculator on the Benefits Agency (or whatever it calls itself nowdays) web site.

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09th May 2010 15:30

don't forget tax credits!

If she is working at least 16 hours, she'll be entitled (assuming she has kids) to working tax credits, which are worth £3750 if she's in a partnership/single parent.

If her income is £7280 (20x£7x52) pa, she'll have a reduction of £335.40 due to her income, thus she'll be left with £66.

If she doesn't have kids, she'll need to work 30 hours a week, and be aged at least 25. However, working 30 hours she could be entitled to an extra £775.

If her partner has income this will further reduce the amount.

 If she has a disability, that could further increase money (and could make it easier to claim)

Andrew

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