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0808 808 3555
Returning to work is likely to mean big changes to your family's
finances. It is important that you get advice as soon as possible
about what benefits you might still get alongside your
Some benefits that you get will not be affected by a move into
work. For example, any Disability Living Allowance
or Personal Independence
Payment that is paid to your child can continue regardless of
whether you start work or not.
Child Benefit also continues to be paid when you are working.
However, if you or your partner earn more than £50,000 per year,
your Child Benefit is reduced. This is done by way of a claw back
through the income tax system. If you earn more than £60,000, all
of your Child Benefit will be recovered through income tax.
Any Council Tax discount
or Council Tax disability
reduction continues while you are working.
Many benefits are affected by earnings. For example, it is only
possible to continue receiving Carer's Allowance if the carer's
earnings are no more than £123 per week after certain deductions.
Any earnings that the carer's partner has are ignored.
Many benefits are means tested. This means that any earnings you
or your partner have are likely to affect these benefits. Income
Support will often stop once you start working, although it may
continue at a reduced rate if your earnings are very low or if you
still receive Income Support amounts for children as part of your
Other benefits like Universal Credit, tax credits, Housing
Benefit and Council Tax
reductions are also affected by earnings. Depending on the
amount of your earnings and your other circumstances these benefits
may not necessarily stop. Often they can continue although the
payments you receive may be lower. If your earnings are low some or
all of these benefits may be unaffected.
If your earnings are above certain levels you may also find that
you no longer automatically qualify for things like free
school meals or help with NHS costs.
Although Working Tax Credit is in the process of being replaced
by Universal Credit, it is still possible for someone who already
gets Child Tax Credit to qualify for Working Tax Credit payments
for the first time.
If you are a lone parent and you start to work more than 16
hours, make sure you let the Tax Credit Office know.
If you are a couple on Child Tax Credit, you should start to
become eligible for Working Tax Credit alongside your existing
Child Tax Credit if you work 24 hours between you or if one partner
works 16 hours and the other is entitled to Carer's Allowance,
incapacitated, in hospital or in prison.