There are various options available for financial help for single parents who work 16 hours or more a week. Below we’ve set out some useful information.

Rent

You may be able to claim housing benefit if you pay rent for the home you live in, including if you live in a shared property, and you don’t have any savings or capital worth more than £16,000. You will not be able to claim benefit for help with paying rent to a close relative that you live with. The amount of housing benefit you may receive will depend on your income, which does not include child benefit and child maintenance.

Local housing allowance

If you live in private rented accommodation, you can be paid a certain amount to help with costs of your rent. This is a capped amount so if your rent is higher you will need to pay the difference yourself.

Social housing reductions

Often known as the ‘bedroom tax’, your housing benefit could be reduced if you live in social housing and are deemed to have a spare or unused bedroom. Housing benefit is calculated on the basis that a bedroom is used for one of the following:

• A couple
• An individual over the age of 16
• Two children under the age of 10
• Any other child (such as a foster child or child who mainly lives elsewhere)
• An overnight carer

If you feel that you have special circumstances that require you to keep a bedroom spare, contact an adviser for more information. If you receive housing benefit but you’re still struggling to cover your rent, ask your local council for a discretionary housing payment. They will review your application and may grant you a payment if they feel it is necessary.

Non-dependants

If you have an individual living with you who is not dependant on you, they will be expected to contribute to the household income and costs, and as such your housing benefit may go down. The amount by which a deduction will be made will depend on the individual’s income.

 

Council Tax

Single person discount

If you are the only adult in a home who qualifies for paying council tax, you will be entitled to a 25% discount off your bill.

 

Tax Credits

Tax credits are state benefits paid by Her Majesty’s Revenue and Customs (HMRC) to those most in need of financial help. The amount of credits you are entitled to will depend on your income and will be calculated for the tax year running from April to April, based on the previous year. There are two types of tax credits: child tax credit and working tax credit.

Child tax credit

You are entitled to receive child tax credit for any child up until the September following your child’s 16^th birthday or, if they remain in full-time, non-advanced education, up until their 20^th birthday. You may also be entitled to an extra amount if your child receives disability living allowance.

Working tax credit

If you are a single parent and work 16 hours or more each week, you may be entitled to working tax credit. You may receive an additional amount if you work 30 hours or more.

Time off work

You may still be able to claim working tax credits, even if you are temporarily out of work, including:

• During the first 39 weeks of maternity leave
• If you’re absent from work due to illness
• For 4 weeks if your job has come to an end or if your hours have been reduced to fewer than 16 a week
• During school holidays if you normally work 16 hours or more during term time

Help with childcare costs

Through working tax credit you may receive payment to help with the cost of childcare. The maximum amount you might receive is 70%, or £122.50 for weekly childcare for one child costing £175, or £210 towards childcare for two or more children each week for £300.

Disabilities

If you have a disability which limits your ability to get a job, you may be entitled to claim the disabled worker element of working tax credit. You may be eligible if you are already receiving a relevant benefit.

Claiming tax credit

If you are already claiming tax credits but your circumstances change, inform HMRC as soon as possible. The following should be reported to HMRC within one month:

• A change in the number of children you care for
• A partner moves into your home
• You change or leave employment
• Your weekly working hours change
• Your childcare costs stop or reduce by £10 or more a week, for 4 weeks in a row.

If you would like to make a claim for tax credit, call the Tax Credit Helpline on 0345 300 3900 and request an application form. Alternatively, request a form online at www.gov.uk/claim-tax-credits/how-to-claim

Tax credit rates

Child Tax Credit	£ per year
Family element – one payable per family	£545
Child element – one payable per child you are responsible for	£2,780
Disabled child element – paid for each child who gets disability living allowance	£3,140
Severely disabled child element – paid for each child who gets the highest rate care component of disability living allowance	£1,275
Working Tax Credit	£ per year
Basic element – one paid to a single parent family	£1,960
Single parent element – one paid to a single parent family (as well as the basic element)	£2,010
30-hour element – paid if you normally work 30 hours or more a week	£810
Disabled worker element	£2,970
Severe disability element – paid if you get the highest rate care component of disability living allowance, or the higher rate of attendance allowance (if you are over pension age)	£1,275
Childcare element of working tax credit(70 per cent of costs, up to maximum costs of:)	£ per week
For one child	£175 a week
For two or more children	£300 a week

 

Calculating your tax credits

Working out what you’re entitled to is a complicated process but below we’ve set out some guidance on how it works.

1. Look at the table of Tax Credits Rates above. Add up all the different amounts (or elements) that apply to your family. This is the maximum amount of tax credits you’ll be entitled to.
2. If you are working 16 hours or more each week and your income before tax and national insurance is £6,420 or less, you will get the maximum amount of tax credits calculated above.
3. If your income amounts to more than £6,420 per year, deduct this amount from your income, and what you have left is called your excess income.
4. Calculate what 41% of your excess income is (so Total Income, minus £6,420, divided by 100, multiplied by 41).
5. Deduct this amount from your original maximum amount of tax credits (worked out in step 1) and this will be the amount you’re entitled to.

 

Other Sources of Financial Help

Even if you are in paid employment, you may still qualify for benefits. See the table below for information on what you might be able to claim.

Type Of Benefit	Who is it for?
Disability Living Allowance (Children)	Children under 16 who have difficulties walking or need more looking after than a child of the same age who doesn’t have a disability. If you qualify, your other benefits and tax credits may go up.
Personal Independence Payment (Adults)	Adults aged 16 to 64 with a long-term health condition or disability. If you qualify, your other benefits and tax credits may go up.
Bereavement Benefits	Parents whose husband, wife or civil partner has died. Also ask if you’re entitled to the funeral expenses payment. These are paid by Jobcentre Plus.
Maternity, Paternity and Adoption Benefits	Maternity, paternity or adoption benefits are available to pregnant women or those who have recently had a child or adopted a child.
Help with Health Costs	Free prescriptions, dental treatment, sight tests and vouchers for glasses and fares to hospital are available to families receiving:×           Child tax credit and working tax credit with an income below £15,276 a year ×           A disability or severe disability element of working tax credit. Exemption cards should be sent out automatically to those who qualify. If you do not automatically qualify but are on a low income, you may still be entitled to help – ask for an HC1 claim form from your local Jobcentre Plus office.
16-19 Bursary	Available to 16 -19 year-olds who are in full-time education. Applications should be made directly to your school, college or training provider.
School Uniforms	Each local council decides what, if any, help they give for the cost of school uniforms. Contact your local council’s education department to ask what help is available.
Cold WeatherPayment	You should receive this automatically if you get the disability or severe disability element of child tax credit. It is only paid in periods of very cold weather, as defined by the government.