childcare and parental incomes Watch

twirtle
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#1
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How does parental income assessment work when there are small children in the household?
Our eldest is considering University, but we have two other much younger children in full time childcare. This takes up all of one of our incomes leaving us with in reality about half the income we would have if we weren't paying for this childcare.
Will these outgoings be taken into account when parental income is looked at? Under the circumstances we won't be able to provide a parental contribution to our eldest as we need all of the other income at the moment to pay our household expenses. It would be useful to be prepared.
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Erin SFE
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(Original post by twirtle)
How does parental income assessment work when there are small children in the household?
Our eldest is considering University, but we have two other much younger children in full time childcare. This takes up all of one of our incomes leaving us with in reality about half the income we would have if we weren't paying for this childcare.
Will these outgoings be taken into account when parental income is looked at? Under the circumstances we won't be able to provide a parental contribution to our eldest as we need all of the other income at the moment to pay our household expenses. It would be useful to be prepared.
Thanks
Hi there,

We don't take into account any expenses you may have to calculate a student's entitlement. We will use the income figures for the 2017/18 tax year for student's starting in the 2019/20 academic year.

Thanks, Erin
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twirtle
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Report Thread starter 4 weeks ago
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Thanks for the reply. It seems a bit silly that they don't in my opinion. If I stopped working my eldest would get the full loan, but because I am working (even though pretty much all of my income is taken up by childcare) they won't, and we will obviously be unable to top it up as we should, because all the money we are assessed as having, we don't because it is instead going to the childcare provider. Which needs to happen or I can't work!

It's bad enough that I'm only working for my pension contributions at the moment and to keep my hand in so I can continue to work later on when the little ones are older. Now it looks like if I don't quit my eldest will struggle to afford University. Seems like yet another of those situations where you end up quite a lot better off not working!
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SFE Nihad
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(Original post by twirtle)
Thanks for the reply. It seems a bit silly that they don't in my opinion. If I stopped working my eldest would get the full loan, but because I am working (even though pretty much all of my income is taken up by childcare) they won't, and we will obviously be unable to top it up as we should, because all the money we are assessed as having, we don't because it is instead going to the childcare provider. Which needs to happen or I can't work!

It's bad enough that I'm only working for my pension contributions at the moment and to keep my hand in so I can continue to work later on when the little ones are older. Now it looks like if I don't quit my eldest will struggle to afford University. Seems like yet another of those situations where you end up quite a lot better off not working!
Hi there,

We do apply a disregard to the household income for each child who is wholly or mainly dependant on you. We will deduct £1130 from the household income for each child. Also, if the income has dropped by 15% or more after the initial assessment has taken place, you can apply for a Current Year Income (CYI) reassessment where we would base the student's entitlement on the estimated new income rather than the tax year details we initially requested.

Regards,
Nihad
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twirtle
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Thanks Nihad, but my childcare costs for full time childcare for infants are ten times this deducted amount...

My income is unlikely to drop as I am unwilling to stop working and rely on the state to support my family and think that keeping me in work should really be incentivised by the government's rules regarding loans and not penalised.

I am very surprised that there is no consideration of the huge childcare costs people have as this is an unavoidable cost if parents of small children are to continue to work. I consider it unfair on my eldest that they will be disadvantaged and less likely to apply for University due to inability to access financial support due to this.

I would love to pay the top up for them, but when our household money to spend on mortgage/food/bills etc is half what we are assessed as having, it should be apparent that I will be unable to do this unless I make my other children homeless.
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SFE Chanel
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(Original post by twirtle)
Thanks Nihad, but my childcare costs for full time childcare for infants are ten times this deducted amount...

My income is unlikely to drop as I am unwilling to stop working and rely on the state to support my family and think that keeping me in work should really be incentivised by the government's rules regarding loans and not penalised.

I am very surprised that there is no consideration of the huge childcare costs people have as this is an unavoidable cost if parents of small children are to continue to work. I consider it unfair on my eldest that they will be disadvantaged and less likely to apply for University due to inability to access financial support due to this.

I would love to pay the top up for them, but when our household money to spend on mortgage/food/bills etc is half what we are assessed as having, it should be apparent that I will be unable to do this unless I make my other children homeless.
Hi,

Your child will still be able to apply for the basic Maintenance Loan (if the household income is above threshold) and the Tuition Fee Loan which is non-income assessed.

http://ow.ly/kujY30nRSSz

Thanks, Chanel
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