Raising children is an eye-wateringly expensive business- particularly in a cost of living crisis. But when the burden falls entirely to one parent it can feel especially stressful. In 2023 the cost of raising a child in the UK rose to £166,000 for a couple and £220,000 for a single parent. Why is it so much more expensive for single parents? It’s mainly because “fixed costs” are shared between fewer people. And if there isn’t another parent or carer to share in childcare, earning potential is reduced or childcare costs increase – or both. This is why single parent benefits are so important.
For Ben, a self-employed single dad, the financial insecurity is a constant worry. “I think what if I lost 50 per cent of my clients all at once, could I still afford the mortgage?”
Having a good grip on what benefits single parents are entitled to is an important part of financial planning – and being in control of the facts can relieve (some) of the worry. So how much does a single parent get on benefits?
Here’s the lowdown on what you might be entitled to….
Single parent benefits calculator
It can be tricky to work out what benefits you are entitled to as a single parent but it’s definitely worth checking you aren’t missing out. The simplest place to start is with an online benefits checker such as the free ones offered by Turn2Us or EntitledTo. Simply plug in your circumstances and get an instant answer.
Is it worth trying to claim benefits as a single parent?
That depends on your individual circumstances such as your age, how many children you have, your income and whether you have a disability or health condition. However even if you are only able to claim a small amount of benefits, this could automatically entitle you to other financial help such as:
· Free prescriptions
· Free school meals
· Discounted travel
· Cheaper broadband and mobile packages
How much universal credit can I get?
If you are on a low income or out of work, you may be able to claim universal credit. The standard monthly amounts for eligible single parents are
· £311.68 if you are under 25
· £393.45 if you are over 25
On top of this there are standard amounts paid for up to two children who live with you, which varies according to when they were born (£287.92-£333.33 per child per month). You’ll get an extra amount if any of your children are disabled.
You can also get help with housing costs.
CHECKLIST:
– To claim for universal credit you must have £16,000 or less in savings, money and investments. If you have over £6,000 in savings, money and investments your payments will be reduced by £4.35 for every £250 you have over £6,000.
– If you already get other benefits (such as housing benefit) or tax credits, you should work out if you’ll be better off before you claim universal credit. Do this using the online benefits calculators or contact the Citizen’s Advice Help to Claim service.
How to apply for universal credit
You can apply for universal credit online or through the Universal Credit helpline 0800 328 5644
How much can I earn and still claim universal credit?
This depends on whether you get help with your housing costs.
· For single parents getting help with housing costs, your payment will start to reduce when your monthly wages reach £404.
· If you do not get help with housing costs, your payment will start to reduce when your monthly wages reach £673.
If your wages go up, your universal credit payment will reduce by 55p for every £1 you earn from working. If you stop working or your wages go down, your payment will increase. Use a benefits calculator to see how your universal credit changes if your wages go up or down. There are different rules if you are self employed like Ben.
How much child benefit do you get?
Child benefit is a tax-free payment made per child under 16 (or under 20 if in full time “approved” education or training). It can only be claimed by one parent (so if you share custody of your children this needs to be agreed). It is usually paid into a nominated bank account every four weeks. However, if you are a single parent you can opt to receive the payments weekly. Find out how to claim here.
Child benefit changes in 2024
On 6 April 2024, child benefit rose to:
· £25.60 a week for the eldest or only child, up from £24
· £16.95 a week for younger children, up from £15.90
From April this year more single parents were able to claim child benefit because the cap on how much you can earn before you start to lose child benefit was lifted.
· Previously, it was taken away entirely when one parent earned more than £60,000. That was increased to £80,000.
· Now it’s not reduced until one parent earns more than £60,000 – up from £50,000.
TOP TIP: If you only just realised you are entitled to child benefit, payments can be backdated by up to three months.
Help with childcare costs
If you are working and are the main carer for your child/children, you may be entitled to free childcare. The amount of free childcare you get depends on the age of your child:
· 9 months to 2 years old – 15 hours per week
· 3 to 4 years old – 30 hours per week
If you claim certain benefits, you may be eligible for free education and childcare for 2-year-olds under a separate scheme. For example, if you are working and claiming universal credit, you can claim back up to 85% of your childcare costs including nurseries, childminders, breakfast clubs, after school care and holiday clubs. The childcare needs to be from a registered provider so make sure you check this. The most you can get each month is:
· £1,014.63 for one child
· £1,739.37 for 2 or more children
Single person council tax discount
If you are on low income you may be entitled to a council tax discount. The reduction depends on your income level and circumstances. If your children are under 18 and there is no other adult in the house, then you may be entitled to 25% off, regardless of your level of income (although Ben points out this doesn’t fairly compensate him for the fact there are 50% fewer adults in his house). You will need to contact your local council directly as every council has slightly different criteria.
Household Support Fund
This government scheme to provide additional help with the cost of living has been extended to March 2025. Some schemes offer cash grants to help with things like food and heating whilst others provide items like electric blankets or furniture. These are distributed by local councils so you will need to contact yours direct to see what is available in your area.
Don’t miss out!
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Click here to find out about helping your child during a separation.
