Are You Getting Divorced? Financial Assistance for Single Parents

Do you have children and are divorced or getting a divorce? This article looks at the financial assistance single parents can be entitled to with some specific example. Depending on circumstances entitlements can include child benefit, child tax credits, working tax credits, housing benefit and council tax benefit.

After a divorce the parent children live with is often entitled to child maintenance payments from the other parent. This is intended to help support the children financially. As this can vary greatly depending on circumstances and income, this is not taken into consideration in the examples at the bottom of this article.

CHILD BENEFIT
Anyone with children is entitled to child benefit, although those earning above £42,475 a year will soon no longer be entitled to it. Child benefit is currently £20.30 for the first child and £13.40 for any additional children. This is paid to children’s primary carer.

CHILD TAX CREDITS
Families whose total income falls below £41,329 are entitled to some form of child tax credits, with the specific amount depending on the exact income.

WORKING TAX CREDIT
Working tax credits are for those who work more than sixteen hours a week but are on relatively low incomes. The maximum entitlement is £210 a week but it depends on earnings with lower earners receiving more.

HOUSING BENEFIT
Housing benefit is money given to low earners to help them pay their rent. For some, this is their entire rent.

COUNCIL TAX BENEFIT
Similar to housing benefit, council tax benefit is to help low earners pay their council tax. Again, it can be as much as their entire council tax bill.

EXAMPLE 1
Claire is a single Mother with a two year old daughter. She does not currently work. Below are her yearly entitlements:

Child Benefit: £20.30 a week = £1,055.60 a year.
Child Tax Credits: As Claire doesn’t have an income she receives £1,492 a year in child tax credits.
Housing Benefit: Enough to pay her entire rent.
Council Tax Benefit: Enough to pay her entire council tax bill.

EXAMPLE 2
After his divorce from his wife, Tim took sole care of his two children, a boy aged eleven and girl aged seven. He works full-time earning £21,000 a year. He doesn’t have to pay for child care as his Mother picks his children up from school and looks after them until Tim finishes work. Below is the help Tim can get:

Child Benefit: £20.30 a week for his son and £13.40 a week for his daughter = £33.70 a week and £1,752.40 a year.
Child Tax Credits: £2,090.40 a year.
Working Tax Credit: He doesn’t receive any working tax credit as his earning are too high to qualify.
Housing Benefit: £167.31 a week = £8,700.12 a year.
Council Tax Benefit: £23.01 a week = £1,196.52 a year.

EXAMPLE 3
Since her divorce, Sarah has been looking after her three year old and eight year old sons. She works part-time, working 16 hours a week. Her yearly wage is £8,000. While she is working her youngest son is at a day care centre, which costs Sarah £80 a week. Below are her entitlements:

Child Benefit: £20.30 and £13.40 for her two children = £33.70 a week and £1,752.40 a year.
Child Tax Credits: £2,772 a year.
Working Tax Credit: £1,550.58 a year as she works 16 hours or more a week. She would not be entitled to this if she worked less.
Housing Benefit: £167.31 a week = £8,700.12 a year.
Council Tax Benefit: £23.01 a week = £1,196.52 a year.

There is plenty of help available to single parents post-divorce. Everyone’s circumstances are different though, so everyone is entitled to different benefits and different amounts.

Andrew Marshall (c)