Child Care: Who Benefits

Going back to work for some parents is a necessity not a choice. But is the system hindering or helping their return to work?

It’s very easy to point to the finger at mothers and fathers who seem reluctant to get back into work but it’s important to consider the actual benefits of working and not claiming benefits.

It’s undeniable there is help for single parents trying to get back to work. However, as soon as that parent has some sort of pay rise, tax credits are reduced or even cut. Mothers and Fathers earning between £25,000 to £30,000 seem to feel the pinch the most. Of course, there are people with far less making it work, however this doesn’t exclude them from the same thing happening as soon as they reach a higher wage bracket.

Georgina Organ, a single mother to her five year old daughter, who works full time, spoke to us.

‘I was sent eight double paged documents explaining my tax credits and benefits. Now, I’m not a brain surgeon but I do have a private education behind me and I struggled to make sense of the whole thing.

I had such a hard time reading the documents, I didn’t spot an error that they had made. I was then charged £5000 at the end of the financial year which was a nasty shock.

I’m a single mother and I’ve always wanted to better myself for my daughter’s sake and my own. I started a position in a great company when my daughter was two and received tax credits and benefits along side my wage which was a blessing. However, as soon as I got a pay rise which took me over the £26,000 threshold, the credits and benefits were cut. Before I was getting help with up to 70% of my care care for my daughter. I found myself in a situation where I couldn’t afford child care and getting to work. I have been forced to rent out the spare room in my flat to survive in London. It’s left me very hard up to the point where I’m thinking of reducing my hours to become eligible for higher tax credits or wondering should I quit work and go on benefits.’

Make no mistake, the money cut short from the £26,000 — £30,000 bracket is surely spent elsewhere on imperative costs. Furthermore, there is an understanding that the purpose of the budget is to spread the money equally to those who need it. However, the argument lies in, as soon as you encourage mothers and fathers to be self sufficient and no longer rely on the system, you free up money used on tax credits and benefits. Holding people back from crossing the threshold drains resources and forces parents to struggle when they earn decent wages. We all anticipate to see what changes regarding tax credits, if any, the new government will enforce to support single parents.

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Written by Roberta Morris. Published 14th June 2017.