With the cost of living set to rise next month, UK families are facing the biggest fall in real income in nearly 50 years, and single parents are likely to be among the worst affected.
To mark World Single Parent Day on March 21, the experts at money.co.uk put together a useful guide to explain what benefits you could be entitled to as a single parent.
James Andrews, Senior Personal Finance Adviser at money.co.uk, said: “Single parents don’t always have access to the income or childcare support that co-parents have, so if you’re struggling financially, it's worth knowing exactly what assistance you might be entitled to.”
There can often be a social stigma around claiming benefits, but it’s crucial to remember that financial support, provided by the Scottish and UK Government is there for a reason.
James highlighted how the first line of financial support is Universal Credit.
He explained: “In the past you may have been able to claim Working Tax Credit and Child Tax Credit, the Uk Government has now consolidated all benefits under Universal Credit.”
Universal Credit is a monthly allowance delivered by the Department for Work and Pensions (DWP) to help people out of work or on a low income cover basic necessities like food, rent and bills find out more on GOV.UK here.
James continued: “You can also claim an additional allowance if you have children. Most people can receive support for their first two children, although there are some circumstances where you can claim for three or more. It’s worth checking your eligibility on the GOV.UK website.”
If you earn too much to claim Universal Credit, the next most common scheme of financial support is Child Benefit.
This is paid at a weekly rate of £21.42 a week for your first child and an additional £14 a week for each child after.
James warns: “Only one person can claim this benefit, so make sure that any other care-givers are aware if you want to apply, as you cannot both make a claim.”
He continued: “It goes without saying that losing your partner is an incredibly difficult event to deal with. So, if your husband, wife or civil partner has passed away and you’re struggling financially, you may be eligible for a bereavement support payment.
“Your loss must have taken place in the past 21 months, however in special circumstances, you may still be able to receive this benefit after that. It’s worth checking the GOV.UK website here to see if you can apply.
“If you already claim child benefit you will receive the higher rate of pay: this consists of one payment of £3,500, and 18 monthly payments of £350. If you do not claim Child Benefit then you will receive the lower rate, which is one £2,500 payment and 18 monthly payments of £100.”
Another huge financial challenge for many single parents is coping with childcare payments. The UK and Scottish Governments have multiple schemes in place to ease the burden.
James explains: “For anyone who has children aged 3 or 4-years old you’re entitled to 15 hours free childcare, regardless of your employment status. If you’re currently employed, this increases to 30 free hours a week.
“You can also apply for 15 hours free childcare if you have a two-year-old, however, you will only be eligible if you’re already receiving another government benefit like Universal Credit. You can check your eligibility for all free childcare on the government website here.
“Another way you can get childcare support is by setting up a tax-free childcare account via the government website here. You can use this account to pay for your childcare, provided you are earning less than £100,000, and are not receiving Universal Credit or tax credits.
“By using this account, you can pay 80% of your childcare costs, per eligible child, into the account, and the government will pay the other 20%. The scheme is capped at £10,000, meaning you could get a max of £2,000 towards your childcare each year.”
James also advised anyone expecting a child, to use the free money.co.uk calculator to work out how much parental leave you’re entitled to.
Low-income families with children under the age of six in Scotland could also receive £20 per week per child under-six from April through the Scottish Child Payment.
Since its launch, the families of around 106,000 children have benefited from £520 a year and by the end of 2022 - subject to data being made available by the DWP - the payment will extend to include all eligible children under the age of 16.
Who should apply for the Scottish Child Payment?
You may be able to get Scottish Child Payment if all of the following apply:
- you live in Scotland
- you or your partner are getting certain benefits or payments
- you or your partner are the main person looking after a child who's under 6 years old
The main person looking after your child (if any) might want to complete the application form, or use their bank details for payment.
Benefits or payment you or your partner must get to qualify
You can apply whether you're in work or not, as long as you're getting one or more of the following benefits:
- Universal Credit
- Child Tax Credit
- Income Support
- Pension Credit
- Working Tax Credit
- income-based Jobseeker's Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
Social Security Scotland guidance states: “If you're not getting any of these benefits or payments, but have applied for one, you can still apply for Scottish Child Payment.
"You might get one of these benefits or payments, but have a sanction or deduction on your claim. This is when you get a cut in your benefits because you did not meet certain conditions or pay money you owe - you can still apply, as this will not affect Social Security Scotland’s decision on your application."
How to claim
You can apply for the Scottish Child Payment by visiting the MyGov website here or calling 0800 182 2222.
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